Steve Thomas - IT Consultant

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.

Facebook may be infamous for helping to usher in the era of “fake news”; but it’s also tried to find a place for itself in the follow-up: the never-ending battle to combat it. In the latest development on that front, Facebook parent Meta today announced a new tool called Sphere, AI built around the concept of tapping the vast repository of information on the open web to provide a knowledge base for AI and other systems to work. Sphere’s first user, Meta says, is Wikipedia, which is using it to automatically scan entries and identify when citations in its entries are strongly or weakly supported.

The research team has open sourced Sphere — which is currently based on 134 million public web pages.

Here is how it works in action:

The idea behind using Sphere for Wikipedia is a straightforward one: the online encyclopedia has 6.5 million entries and is on average seeing some 17,000 articles added each month. The wiki concept behind that means effectively that adding and editing content is crowdsourced, and while there is a team of editors tasked with overseeing that, it’s a daunting task that grows by the day, not just because of that size but because of its mandate, considering how many people, educators and others rely on it as a repository of record.

At the same time, the Wikimedia Foundation, which oversees Wikipedia, has been weighing up new ways of leveraging all that data. Last month, it announced an Enterprise tier and its first two commercial customers, Google and the Internet Archive, which use Wikipedia-based data for their own business-generating interests and will now have wider and more formal service agreements wrapped around that.

On Meta’s part, the company continues to be weighed down by a bad public perception, stemming in part from accusations that it enables misinformation and toxic ideas to gain ground freely — or if you’re someone who has ended up in “Facebook jail”, believing you have shared something you think is fine, but you still have fallen afoul of over-zealous social police. It’s a mess for sure, but in that regard launching something like Sphere feels a little like a PR exercise for Meta, as much as potentially a useful tool: if it works it shows that there are people in the organization trying to work in good faith.

To be clear, today’s announcements about Meta working with Wikipedia do not reference Wikimedia Enterprise, but generally adding in more tools for Wikipedia to make sure that the content that it has is verified and accurate will be something that potential customers of the Enterprise service will want to know when considering paying for the service.

It’s also not clear whether this deal makes Wikipedia a paying customer of Meta’s, or vice versa — say, Meta becoming an enterprise customer in order to have more access to the data to work on Sphere. Meta does note that to train the Sphere model, it created “a new data set (WAFER) of 4 million Wikipedia citations, significantly more intricate than ever used for this sort of research.” And just five days ago, Meta announced that Wikipedia editors were also using a new AI-based language translation tool that it had built, so clearly there is a relationship there.

We have asked and will update this post as we know more.

For now, a few more details on Sphere and how Wikipedia is using it, and what might be coming next:

— Meta believes that the “white box” knowledge base that Sphere represents has significantly more data (and by implication more sources to match for verification) than a typical “black box” knowledge sources out there that are based on findings from, for example, proprietary search engines. “Because Sphere can access far more public information than today’s standard models, it could provide useful information that they cannot,” it noted in a blog post. The 134 million documents that Meta has used to bring together and train Sphere were split into 906 million passages of 100 tokens each.

— By open sourcing this tool, Meta’s argument is that it’s a more solid foundation for AI training models and other work than any proprietary-based base. All the same, it concedes that very foundations of the knowledge are potentially shaky, especially in these early days. What if a “truth” is simply not being reported as widely as misinformation is? That’s where Meta wants to focus its future efforts in Sphere. “Our next step is to train models to assess the quality of retrieved documents, detect potential contradictions, prioritize more trustworthy sources — and, if no convincing evidence exists, concede that they, like us, can still be stumped,” it noted.

— Along those lines, this raises some interesting questions on what Sphere’s hierarchy of truth will be based on compared to those of other knowledge bases. The idea seems to be that because it’s open sourced, there may be an ability for the users to tweak those algorithms in ways better suited to their own needs. (For example, a legal knowledge base may put more credibility on court filings and case law databases than a fashion or sports knowledge base might.)

— We’ve asked but have yet to get a response on whether Meta is using Sphere or a version of it on its own platforms like Facebook and Instagram, Messenger, which themselves have long grappled with misinformation and toxicity from bad actors. (We have also asked whether there are other customers in line for Sphere.)

— The current size of Wikipedia has arguably exceeded what any sized team of humans alone could check for accuracy, so the idea here is that Sphere is being used to automatically scan hundreds of thousands of citations simultaneously to spot when a citation doesn’t have much support across the wider web: “If a citation seems irrelevant, our model will suggest a more applicable source, even pointing to the specific passage that supports the claim,” it noted. It sounds like the editors might be selecting the passages which might need verifying for now. “Eventually, our goal is to build a platform to help Wikipedia editors systematically spot citation issues and quickly fix the citation or correct the content of the corresponding article at scale.”

 

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.

The app industry continues to grow, with 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. App Annie says global spending across iOS and Google Play is up to $135 billion in 2021, and that figure will likely be higher when its annual report, including third-party app stores in China, is released next year. Consumers also downloaded 10 billion more apps this year than in 2020, reaching nearly 140 billion in new installs, it found.

Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that was up 27% year-over-year.

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

Elon says he’s killing the Twitter deal

The bird app buyout could be off, if Elon Musk has his way.

On Friday, Musk’s legal team informed Twitter the Tesla and SpaceX exec would be terminating the merger agreement because, as their letter alleges, Twitter made false and misleading claims about the health of its business. This, of course, refers to the drama Musk had been stirring up over the percentage of bots on the service, which Twitter says is estimated to be less than 5%. Upon Musk’s earlier pressing for more information on this figure, Twitter provided Musk’s team with API access to make their own determinations. The letter, however, states that this API access was capped and limited, preventing the team from being able to accurately analyze Twitter’s data with regard to bots. (Which makes Musk’s claims that the bot count is higher than Twitter said it was a bit hard to prove!) Musk’s lawyers also allege Twitter included known fake and bot accounts in its mDAUs and didn’t have a standard process for calculating its mDAUs or the percentage of bots. Even if the arguments were valid — and that’s not able to be determined at this time — they don’t allow Musk to simply walk away.

Musk has already legally agreed to this deal, which means the battle will now move to court where Twitter says it plans to enforce the agreement at the price and terms agreed upon. And even if both parties agree to terminate, Musk will have to pay out a billion dollars as a termination fee.

The real reason Musk is trying to terminate is not likely “bots.” It’s because he knows he overpaid. What looked like a decent deal earlier (@ $54.20 per share) quickly became an overpriced deal in a macroeconomic environment that’s led to tech stocks tanking. Since announcing the deal, Twitter’s stock hadn’t again hit the negotiated price, and in fact, was recently down as much as 28% below Musk’s offer price. By forcing the deal to go to the courts, Musk could be hoping for a shot at negotiating a better price. But that’s far from being a certain outcome.

Google blocked KakaoTalk for not following its rules

Google this week demonstrated it plans to enforce its new Play Store terms over in-app purchases, even if the developer is a $1.5 billion tech giant and leading app in its region. The Korean company behind the KakaoTalk mobile messenger popular in South Korea was prevented from issuing updates to its app over its failure to comply with Google Play’s terms, according to local media reports. This would be the first time Google has enforced its new Play Store rules over how apps can point users to their own websites for alternative methods of payments.

South Korea’s in-app payment law, better known as the “anti-Google law,” permits Android app developers to add third-party payment options in their app, but only if they offer them alongside Google’s own billing system. It doesn’t permit developers to add links to their app that allow users to bypass Google’s billing system entirely, however. That’s what KakaoTalk is continuing to do.

According to Google’s rules, failure to comply with its rules could see apps removed from the Play Store altogether. Google hasn’t gone that far just yet — instead, it’s only blocked the company from issuing updates. But this is still a serious punitive action and one designed to prompt the app to take action.

Companies aren’t happy with how Google complied with the country’s new law, as Google is only offering a discount on commissions paid for those using third-party payments, instead of allowing them to avoid commissions as they had hoped. On April 1, Google said all apps must either use Google’s own payments system and pay the usual 15-30% in commissions, or the apps could offer a third-party system for a discount of 4% on those fees.

The Korea Communications Commission (KCC) met with Google and Kakao on Thursday about the matter. Afterward, Kakao relented and chose to remove the web link to the third-party payments system as required by Google’s rules to come into compliance. Analysts speculated Kakao’s earlier refusal to remove the link was to simply bring the issue to regulators’ attention — that is, it aimed to demonstrate how Google had complied with the letter of the law, but not with the spirit. The KCC had been investigating how the law was being implemented but since most apps were already in compliance, Google hadn’t yet taken any punitive actions.

The Kakao Talk messaging app today is used by some 53 milllion+ people monthly, making it one of the biggest social apps in the country.

FTC asked to investigate TikTok

TikTok found to fuel disinformation, political tension in Kenya ahead of elections

Image Credits: TikTok

Senate Intelligence Committee members have asked the FTC to investigate whether TikTok misled lawmakers about ByteDance employees’ ability to access U.S. users’ data. Democrat Senator Mark Warner and Republican Marco Rubio, the chair and ranking member of the committee, respectively, wrote a letter to FTC Chair Lina Khan requesting a further investigation into whether TikTok may have lied in its testimonies to Congress over how it handles user data.

This demand follows a BuzzFeed News report that revealed that ByteDance employees in China were regularly accessing U.S. data into early 2022, despite TikTok’s prior assurances to the contrary. Last weekend, timed alongside the BuzzFeed scoop, TikTok wrote to Republican Senators to assure them it’s working on a program called “Project Texas” aimed at improving data security for U.S.-based users.

“In light of this new report,” the letter stated, “we ask that your agency immediately initiate a Section 5 investigation on the basis of apparent deception by TikTok, and coordinate this work with any national security or counter-intelligence investigation that may be initiated by the U.S. Department of Justice.”

Pressure on TikTok has been increasing as of late. Six senators sent a letter to the Treasury Department on June 24, asking for details about the negotiation between TikTok and CFIUS, which would have prompted Trump’s EO to ban the TikTok app in the U.S. An FCC Commissioner, Brendan Carr, also wrote to Apple and Google on June 28, requesting the companies remove TikTok from their app stores for “its pattern of surreptitious data practices.”

Weekly News

Platforms: Apple

Image Credits: Apple

  • Apple introduced an iPhone Lockdown Mode in iOS 16. The new OS, as well as updates for iPad and Mac, will include a feature that lets users who are most at risk from attacks take more extreme measures to lock down their devices and reduce attack surfaces. In Lockdown Mode, most message attachments are blocked and previews are disabled; some web technologies are disabled; FaceTime calls from people you haven’t connected with before are blocked; Shared Albums are removed from the Photos app; configuration profiles can’t be installed; wired connections to other devices or accessories are blocked; and more. Apple said it will add more protections to this mode over time.
  • Apple rolled out the third developer betas for iOS 16, iPadOS 16, tvOS 16, watchOS 9 and macOS 13 Ventura. The news suggests the iOS 16 public beta is just around the corner, given it usually arrives alongside the third developer betas. The third beta also includes support for iCloud‌ Shared Photo Library, which lets families combine their photos and videos in one place.
  • Apple also released iOS 15.6 and iPadOS 15.6 beta 5 to developers, alongside other platforms.

Platforms: Google

  • The Google Play Store appears to be getting an updated logo with rounded corners on the triangle and colors that are more aligned with Google’s four colors (blue, green, yellow and red), instead of lighter variations.

E-commerce & Food Delivery

  • Code spotted in the iOS 16 beta 3 suggests Apple is working on a new system to integrate virtual cards with Safari, reports 9to5Mac. The feature would allow users to pay with virtual card numbers when online shopping in mobile Safari.
  • Amazon partnered with Grubhub and took a stake in its owner, Just East Takeaway. The deal will see Amazon offering free membership to Grubhub+ for one year to Prime members in the U.S. The retailer had previously offered a similar deal to Amazon Prime Student members and had a partnership with Deliveroo in the U.K. that offered a free year of Deliveroo+ to Prime members.
  • Walmart folded its InHome grocery delivery service into its subscription plan, Walmart+. The service lets users monitor in-home grocery deliveries via an app where they can livestream the delivery as it’s in progress, watching as Walmart staff places their items inside their fridge and freezer.
  • Pinterest introduced an API for Shopping and Product Tagging for Pins, among other merchant-focused updates. The API offers access to new catalog management and product metadata features, while Product Tagging allows merchants to make their “lifestyle” Pins shoppable, similar to shoppable photos on Instagram. In addition, video assets can now be used in product catalogs, and a new Shop Tab on business profiles lets merchants easily display their shoppable products.

Image Credits: Pinterest

  • Pinterest also launched its ads business in Argentina, Colombia and Chile, joining other expansions to Brazil and Mexico last year, and Japan’s launch earlier this year. The ads allow retailers to connect with users searching for items that match those in their own catalogs, even if the searchers haven’t settled on a particular brand.
  • Ex-employees at shopping app Wish detailed to The NYT about the app’s low product standards, unreliable shipping, counterfeiting, inappropriate ads and deceptive experiments which drove users away. The app saw MAUs drop from 101 million in Q1 2021 to 27 million in Q1 2022.
  • Amazon readies itself for Prime Day with help from online influencers. The company is livestreaming creators who are promoting Prime Day deals via its Amazon Live platform. The streams are available on Amazon’s website and in its mobile app.
  • Instacart rolled out a new rewards program for shoppers which offers priority access to batches for those with higher ratings. Other perks include discounted childcare, cash back on gas and car maintenance discounts. The company recently introduced other shopper features to protect their tips and remove ratings from customers who always dole out less than five stars.
  • TikTok dropped its plans to expand livestream shopping in the U.S. and elsewhere after the feature failed to gain traction outside of the U.K., FT said.

Augmented Reality

Image Credits: The Met/8th Wall

  • The Met launched a new AR experience that allows visitors or anyone to view the Sphinx in augmented reality. The Sphinx appears in your own space atop a grave stele and is annotated with interesting facts users can tap on to learn more. There’s also a selfie feature that lets users try on the Sphinx’s colors. The AR features are powered by 8th Wall and work in the Safari web browser app, instead of requiring a dedicated mobile app.

Crypto

Image Credits: Reddit

  • Reddit launched a new NFT-based avatar marketplace that allows users to purchase blockchain-based profile pictures at a fixed rate. Users don’t need to have a crypto wallet to make the purchases, only a credit or debit card. The purchases are then held in Reddit’s own wallet called Vault, inside its existing mobile app. Vault is also used to earn blockchain-based community points and spend them on special features like badges and animated emoji. There are 90 NFT designs available at launch, and a total of “tens of thousands” of NFTs will be available during early access at prices ranging from $9.99-$99.99. The company partnered with Polygon, an Ethereum-compatible blockchain, to mint the avatars on-chain.
  • Crypto exchange Binance.US hired a former Acorns and PayPal exec Jasmine Lee as its CFO, replacing interim CFO Eric Segal. The company offers one of the top crypto apps in the U.S. and operates as a separate entity from the global Binance exchange.
  • The Chinese photo-editing app Meitu reported a $45.6 million crypto impairment in H1 2022. The company’s stock dropped more than 10% after it projected crypto impairments tripling from 2021 levels.

Adtech

  • Glace, owned by adtech firm InMobi Group, will partner with U.S. carriers to launch a media service for Android lock screens. Glance serves media, news and casual entertainment to lock screens and already has a presence on around 400 million devices in Asian markets.

Social

  • Snap’s unexpected new hire comes from the Secret Service. According to The Washington Post, Secret Service Director James Murray is retiring from his post and joining Snap as its chief security officer at the end of the month, where he’ll directly report to CEO Evan Spiegel.
  • TikTok is facing multiple lawsuits from parents who allege their children died attempting the “blackout challenge” they saw on the app. The challenge encouraged users to strangulate themselves until passing out. TikTok claims users learned about the challenge on other platforms and says it was never a TikTok trend.
  • TikTok is testing a new ability that would allow livestreamers to restrict their stream to viewers who are 18+. The company said it’s testing this feature with select users by offering an option to toggle a “mature themes” button that would restrict their TikTok LIVE’s to adults only.
  • Meta is moving forward with its digital collectibles plan that will allow creators to generate revenue from NFTs, despite the crypto crash, reports FT.
  • Twitter begins testing “CoTweets,” a feature that allows two users to co-author tweets — a feature that makes it possible for influencers and brands to post tweets together for brand partnership deals, among other use cases.
  • Elon Musk may be still trying to get out of the Twitter deal, The Washington Post claims (see above). The Telsa and SpaceX exec is reportedly concerned about the number of bots on the service, but he’s likely more worried now about how much he’s overpaid for the social media company. Nevertheless, the ink is dry on the deal and will cost Musk $1 billion if he backs out. Twitter, meanwhile, told reporters it removes 1 million+ spam accounts per day and those accounts are well less than 5% of total users. It also confirmed layoffs of 30% of its talent acquisition team.
  • An Israel-based startup called Notch is offering creators “Instagram account insurance,” which will pay out a stipend if their accounts get hacked causing them to lose access. The startup will also help them regain control of their page, it says.

Dating

  • Tinder rolled out several in-app initiatives in the U.S. that allow users to take a stand against the Supreme Court’s decision to overturn Roe v. Wade. Users can now include “Pro-Choice” as an interest on their profiles, and the app features an in-app promotion that supports the abortion rights campaign from Bansoff.org. The company is also donating in-app promotional space to Kansas Constitutional Freedom (KCF), a bipartisan coalition of reproductive rights advocates and allied organizations dedicated to protecting access to safe and legal abortions. The court’s decision could have an impact on the use of dating apps for casual dating in the U.S., which could impact Tinder’s business.

Messaging

  • Messaging app Signal introduced a new thread view on Android, which allows users to see replies to messages bundled in a single place, similar to Slack.

Streaming & Entertainment

  • Netflix rolled out support for spatial audio to all devices and subscribers to offer theater-like sound for its movies and shows. The support is currently available on original titles like the fourth season of “Stranger Things,” “The Adam Project,” “Red Notice,” “The Witcher,” “Locke & Key” and others. Users can find supported titles by typing in “Spatial Audio” in the search bar.

Gaming

  • Code found in Meta’s iPhone app for VR headsets suggests the company’s “Project Cambria” VR headset is going to be called the Meta Quest Pro, which will cost over $1,000, per Bloomberg. Mark Zuckerberg had previously teased the high-end headset in a demo video.
  • In an update to The Oregon Trail game on Apple Arcade, creator Gameloft added a new “Walk the Trail” feature that connects the game with Apple Health. As users walk throughout the day, their steps are counted in a virtual Oregon trail inside the app that crosses 64 locations like Fort Kearney, Fort Laramie, Fort Hall and others. A stats screen highlights the steps, locations visited and more and a trivia screen offers details about the milestones you pay.

Utilities

  • Apple is rolling out its improved Maps to France, Monaco and New Zealand, following tests. The regions will gain updated, more detailed maps, better navigation and other features.

Government & Policy

  • Twitter sued the Indian government to challenge some of its takedown orders. The government has asked Twitter to remove hundreds of accounts and tweets that had denounced government policies and Prime Minister Narendra Modi. Twitter had only partially complied with the requests and is instead fighting back against many of the challenges.
  • In the wake of the overturning of Roe v. Wade, the U.S. House Oversight Committee issued letters on Friday to data brokers SafeGraph, Babel Street, Digital Envoy, Placer.ai and Gravy Analytics, as well as period tracking app makers Flo Health, Glow, GP International, Clue developer BioWink and Digitalchemy Ventures. The committee is asking the companies about their data collection and retention practices, noting that the collection of sensitive data could “pose serious threats to those seeking reproductive care as well as to providers of such care, not only by facilitating intrusive government surveillance, but also by putting people at risk of harassment, intimidation, and even violence.”

Security & Privacy

  • Related to its introduction of Lockdown Mode in iOS 16, Apple also established a new category within the Apple Security Bounty program to reward researchers who find Lockdown Mode bypasses and help improve its protections. Bounties are doubled for qualifying findings in Lockdown Mode, up to a maximum of $2,000,000 — the highest maximum bounty payout in the industry. The company said it’s also making a $10 million grant, in addition to any damages awarded from its lawsuit filed against NSO Group, to support organizations that “investigate, expose, and prevent highly targeted cyberattacks, including those created by private companies developing state-sponsored mercenary spyware.”

Funding and M&A

💰 Mobile marketing firm Moburst acquired digital studio Layer, which offers web, mobile and app development services. Layer, launched in 2015, has worked with clients like Nissan, Renault and others. Deal terms weren’t disclosed. The two companies had previously worked together on multiple projects and will now allow Moburst to expand its services and offer a full-stack solution.

💰 Digital banking app YAP, based in the United Arab Emirates, raised $41 million as part of a Series A round expected to close at year-end. The company aims to expand its services into Saudi Arabia, Egypt, Pakistan and Ghana.

Tweets

 

One more hurdle up ahead for Activision Blizzard, the games giant behind “Call of Duty” that Microsoft is looking to acquire for $68.7 billion. The UK’s Competition and Markets Authority has announced a formal investigation into the proposed deal. This opens the investigation up for feedback from “any interested party” ahead of the CMA deciding whether to embark on a phase-2, deeper enquiry into whether the deal is anticompetitive and represents antitrust violations in the U.K. Those interested parties have until September 1 to respond.

Areas that it will be assessing include whether the deal leads to higher prices, lower quality, or reduced choice in games and the gaming ecosystem.

“The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” it notes.

If the acquisition goes ahead, it will be one of the biggest M&A deals ever in technology, led by one of the world’s biggest tech companies and with some of the world’s most popular brands in digital entertainment — which in addition to “Call of Duty” also include “World of Warcraft” and “Candy Crush.” So in that regard the antitrust investigation is a fairly routine move. As the CMA notes, “The deal is set to be reviewed by competition authorities around the world and, as is usual practice, the CMA will engage with its counterparts as appropriate.”

The CMA notes that its more formal criteria for assessing investigations is that it can do so in cases where two or more enterprises cease to be distinct and “either the UK turnover of the acquired business exceed £70 million, or the 2 businesses supply/acquire at least 25% of the same goods/services supplied in the UK and the merger increases the share of supply.”

The U.S. has a similar set of rules in place for triggering antitrust enquiries and so unsurprisingly, the FTC in the U.S. is also currently investigating the deal. The regulators have been known to scupper, or add provisions, to deals, as well as nod them through.

The CMA has played a significant role in recent years in the fate of several large tech companies’ business development strategies. It struck down the acquisition of Arm by Nvidia, but it nodded through Microsoft’s acquisition of Nuance for $20 billion. It’s currently also investigating Google’s adtech stack and at long last is looking into the duopoly in mobile in the country that is Apple and Google. Although it didn’t raise much noise in Facebook’s acquisition of WhatsApp several years ago, more recently it ordered the company to sell Giphy. One route to getting past regulatory concerns at the CMA has seen companies downsize their acquisitions, such as eBay and Adevinta did when selling off several assets to get their classifieds deal past them. 

The news of the antitrust probe comes at a time when Activision Blizzard has already weathered a number of controversies particularly around its labor and wider human relations practices.

When Microsoft’s bid for Activision was first announced in January of this year, quality assurance testers at Raven Software, a division of Activision, had been on strike for about five weeks over the termination of contracts for some workers and what they saw as unfair treatment by the company, given the stress that this group faces in their daily work. They voted to unionize in May, making it the first union in a major gaming company.

Beyond that, the company has been under intense public and regulatory scrutiny over workplace culture. The company, which overall employs about 10,000 people globally, was the subject of a two-year investigation by the California Department of Fair Employment and Housing. It eventually filed a lawsuit against Activision Blizzard in July 2021, claiming a “‘frat boy’ workplace culture” at the company and describing it as a “breeding ground for harassment and discrimination against women.” On top of this, Bobby Kotick, who has been the CEO of the company since 1991 (originally at Activision pre- its Blizzard merger), reportedly knew about, yet failed to act, over sexual misconduct and rape allegations.

To be clear, details of the HR drama at the company are not within the parameters of the antitrust investigation, but they do contribute to the bigger picture of a company under the gun.

Those who are giving feedback on the merger to the CMA can do so here and have until September 1 to make their submissions.

Six years on from the referendum where the United Kingdom voted to leave the EU, and in the midst of an apparent government meltdown, the country is announcing its first international data sharing deal: it’s inked an agreement with South Korea, which will allow organizations in the UK to transfer data to the Republic of Korea, and vice-versa, without restrictions.

“Data transfers” cover any and all digital services that might be provisioned in one country but used or run in the other. It covers data in services like GPS and smart devices, online banking, research, internet services, and more. South Korea is home to two of the world’s biggest tech and specifically mobile tech companies, Samsung and LG, and already represents some £1.33 billion ($1.6 billion) in international digital trade, the UK said.

“Today marks a huge milestone for the UK, the Republic of Korea and the high standards of data protection we share,” said UK Data Minister Julia Lopez in a statement. “Our new agreement will open up more digital trade to boost UK businesses and will enable more vital research that can improve the lives of people across the country.”

“I am honored to agree to this joint statement today. Strengthening cooperation between the UK and the Republic of Korea based on the shared recognition of high standards of protection can contribute to forming a healthier and more sustainable global data landscape,” added Republic of Korea Commissioner of the Personal Information Protection Commission Jong in Yoon.

South Korea was one of several countries earmarked for a so-called international data adequacy initiative aimed at “unlocking the benefits of free and secure cross-border data flows now the country has left the EU” — the others being the U.S., Australia and Singapore, the Dubai International Finance Centre and Colombia. “The government continues to make excellent progress in its discussions with other priority countries,” it said today.

Ironically, had UK remained in the EU, it would be no further along in the effort it has achieved today: South Korea already has a data adequacy deal with Europe.

Google, Mastercard and Microsoft were among the companies and outside experts advising the government on this deal as part of an International Data Transfer Expert Council formed earlier this year. The government argues that data transfers and the many regulations that have been built around them have led to “billions of pounds” of trade going “unrealized” due to navigating that landscape.

Specifically, UK’s Department of Digital, Culture, Media and Sport — which is overseeing the deal — said that the idea will be that now companies and organizations doing business across the two countries will be “able to share data freely and maintain high protection standards” while doing so. Given that the basics of the country’s respective data usage policies have theoretically been vetted and harmonized, parties will no longer have to deal with contractural safeguards, it said, including paperwork for International Data Transfer Agreements or Binding Corporate Rules.

Still, you could argue that the time it’s taken, the fact that it’s only covering one country that would have been a partner the UK could have had (sans Brexit) anyway, and that fact that today’s deal is still not fully done — it’s just in “principle” — pulls the rug a little from under the argument that Brexit will lead to a lot less red tape for the UK going forward when it comes to trade deals.

Getting the deals done with the rest of the priority list will be a start, however. The DCMS estimated that “data-enabled services” to the full list (which includes the U.S.) are currently worth more than £80 billion.

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.

The app industry continues to grow, with 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, Google Play and third-party Android app stores in China grew 19% in 2021 to reach $170 billion. Downloads of apps also grew by 5%, reaching 230 billion in 2021, and mobile ad spend grew 23% year over year to reach $295 billion.

Today’s consumers now spend more time in apps than ever before — even topping the time they spend watching TV, in some cases. The average American watches 3.1 hours of TV per day, for example, but in 2021, they spent 4.1 hours on their mobile device. And they’re not even the world’s heaviest mobile users. In markets like Brazil, Indonesia and South Korea, users surpassed five hours per day in mobile apps in 2021.

Apps aren’t just a way to pass idle hours, either. They can grow to become huge businesses. In 2021, 233 apps and games generated over $100 million in consumer spend, and 13 topped $1 billion in revenue. This was up 20% from 2020, when 193 apps and games topped $100 million in annual consumer spend, and just eight apps topped $1 billion.

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 suggestions about new apps to try, too.

Top Stories

Consumers react to Roe v Wade by deleting period tracking apps

In the week after the controversial Supreme Court ruling on Roe v Wade, consumers began to lock down access to their non-protected health data in period tracking apps. There was enough app switching taking place to influence the App Store charts, in fact, as users moved both to and from leading app Flo, benefitting rivals like Clue and Eve, which saw installs increase by 2,200% and 83%, respectively.

There are differing opinions on how much concern there needs to be over this period tracking data. Some argue that period tracking app data would not be the primary evidence used if there were to be prosecutions over now criminalized abortions — an argument, however valid, essentially serves to chastise consumers for reacting in fear by switching to more private apps or deleting them altogether. The bigger picture here is that this data was never HIPPA protected in the first place. And if consumers are reacting with seemingly outsized concern, maybe it’s because the government’s ruling terrifies them about what the future for this country holds. Maybe it not so crazy to switch back to pen and paper at a time when a rogue court is throwing out half a century of established legal precedent in order to control bodies and invade citizens’ privacy.

In any event, many period tracking app providers have been making promises to secure data or introduce new anonymity features. But in an unfortunate twist, it was a newcomer to the market that became the No. 1 app after the ruling — largely based on promises of end-to-end encryption and not its existing protections. As it turned out, the app — Stardust, as it was known — was sharing users phone numbers with a third-party. And after it rolled out its expected encryption later in the week, Stardust was found to be sending the local encryption key back to its servers. In layman’s terms, that means whatever was encrypted could now be decrypted. Not a good look.

Now the House Democrats are considering legislation that could protect abortion rights and secure data in reproductive apps.

Snapchat thinks its users will pay for perks with Snapchat+

Snapchat+

Image Credits: Snapchat

Like many tech companies, Snapchat has been struggling amid the tougher economic conditions and inflation. The company reported a challenging first quarter where it had additionally cited supply chain disruptions, the war in Ukraine, labor shortages and rising interest rates as contributing factors to its miss on both revenue and earnings in the quarter, and only a small uptick in daily active users. The company is also still dealing with the fallout from Apple’s 2021 privacy changes, or ATT (App Tracking Transparency), that impacted its advertising business and revenue.

In the midst of these macroeconomic factors, Snap is trying to navigate new regulations around minor safety, lock down its developer platform, roll out parental controls and remain competitive in a market where much of young people’s time spent in apps is now shifting to TikTok and other lightweight networking apps — or what TechCrunch recently dubbed “homescreen social” apps — like LiveIn, BeReal and others.

This has resulted in a search for alternative business models beyond advertising, it seems. This week, Snap introduced Snapchat+ — a $3.99/month subscription that provides access to premium features like being able to pin a friend as a “BFF,” see who rewatched a Story and the ability to change the app icon. The move, which was leaked in advance, follows the launches of similar subscription options aimed at power users, like Telegram Premium’s recent launch and Twitter Blue. It’s hard to say if these investments will pay off in the long run. For now, Twitter continues to make the majority of its revenue from ads and a small bit from data licensing. Telegram’s offering is too new to analyze at this time.

Snapchat+, meanwhile, is targeting an audience with perhaps even less to spend on subscription services. Will Snap’s high-schooler customers want to use their babysitting money, allowance or income from another minimum wage job or side hustle to gain a few extra features? Were these features actually in high demand, the way Twitter’s Edit button was? What’s the strategy for enhancing the offering over time? How will Snap evaluate which features to add — is it analyzing user data or behavior? Will it launch a feedback forum? Or will it just come up with ideas on its own? What percentage of revenue will Snapchat+ need to target to be considered a success? What are the ramifications to Snap if the product fails? Would Snap consider a bundle that combines hardware (like its new drone camera) and software?

For what it’s worth, Snap clearly didn’t want to invite much scrutiny of this major change to its business model. The company only offered one outlet, The Verge, an interview and said very little in it — beyond conveying to investors that this won’t be a “material new source of revenue.” Snap also tried to suggest to the outlet that it had been thinking about subscriptions for over five years, as if the new product was not reactive to the state of its business today.

Of course, tech companies weigh a variety of ideas all the time! But the timing of when they allocate real-world resources to build them is what actually matters. And Snap built a new way to make money at a time when the old way is suffering.

Oh, we’re thinking about banning TikTok again?

tiktok glitch

Image Credits: TechCrunch

The GOP wants to force you to use Reels. OK, that’s not quite the story — but that could be the result.

In actuality, Brendan Carr, the senior Republican on the Federal Communications Commission, wrote to Apple and Google to insist they pull TikTok from their app stores, calling it “a sophisticated surveillance tool” that’s harvesting “extensive amounts of personal and private data.”

Carr’s letter was prompted by the new report from BuzzFeed News which found that ByteDance staff in China had access to U.S. users’ TikTok data as recently as January 2022. (Beijing-based ByteDance owns TikTok and its Chinese sister app, Douyin).

Carr demanded the companies respond by July 8 if they didn’t comply and why. Specifically, he asked the app stores to explain why they would not penalize an app engaged in “the surreptitious access of private and sensitive U.S. user data by persons located in Beijing” coupled with “TikTok’s pattern of misleading representations and conduct.”

TikTok has long insisted it stores U.S. users’ data in the U.S. itself, with backups in Singapore, and said the data was outside the jurisdiction of China’s national security law which requires companies to turn over data to the Communist party if requested. But if TikTok data was being accessed in China, these prior statements seem to be misleading, at best.

The Trump administration had previously tried to ban TikTok by way of an executive order, but was held up in the courts. The Biden administration didn’t pursue the matter. But this latest incident now has the GOP interested in a ban once again. Fourteen GOP senators have also issued letters calling for answers from the video app, arguing it’s a national security threat.

Of course, it’s not that easy to ban TikTok. Last time around, TikTok creators successfully sued to stop the ban, which they said would prevent them from being able to earn a living. Another judge had also blocked Trump’s ban, saying the former president had overstepped his authority.

TikTok, meanwhile, has responded to BuzzFeed’s reporting by announcing it’s moving all U.S. user data to Oracle servers in the U.S., after which it will then delete U.S. users’ data from its own data centers, it says. Sure, Jan.

Weekly News

Platforms: Apple

  • Apple announced on Thursday developers in South Korea can now use third-party payments in their apps published to the South Korea App Store but will still pay a 26% commission. Plus, just as it tried before with Dutch dating apps, which had also won the right to use third-party payments, Apple said developers will need to submit their revised apps in a separate binary. Dutch regulators had pushed back against that provision, calling it an undue burden on developers, and Apple eventually dropped the requirement to come into compliance. It’s unclear how the Korea Communication Commission (KCC) will choose to respond, however.
  • Apple CarPlay in iOS 16 will support a new feature that allows drivers to pay for gas through a screen in their car using the fuel company’s app, instead of having to pay at the pump itself. BP, Shell and Chevron have expressed interest.
  • Apple clarified the iPad home hub support in iOS 16, after testers noted the iPad could no longer serve as a home hub — while Apple TV and HomePod devices could. The company explained that the Home app will introduce a new architecture in iPadOS 16 and iPad won’t be supported as a home hub with that upgrade. Impacted users can opt to not update their Home app to continue to use their iPad as a home hub.
  • Apple released the fourth public beta of iOS 15.6 and iPadOS 15.6.

Platforms: Google

  • Google’s Switch to Android app for iOS users is now compatible with all Android 12 phones, instead of just Pixel phones as before. The feature allows users to more easily make the move from iOS to Android by copying over contacts, calendars, photos and videos, and instructing on how to deregister iMessage.
  • Google settled a lawsuit with Android app developers over fees. The company settled a lawsuit with U.S. app developers who made less than $2 million in Play Store revenue from 2016-2021 by setting aside $90 million in a fund to pay back money to developers. The suit had argued Google gained a monopoly in the Android app distribution space through anti-competitive practices. The law firm said 48,000 U.S. developers are eligible to receive payments from Google.

E-commerce & Food Delivery

  • Food delivery biz Deliveroo will expand advertising on its app in July, including by adding ads to its order-tracking page as it chases profitability.
  • Fast food and membership club apps are seeing increased demand amid inflation, Apptopia reports.
  • TikTok is testing a dedicated “Shop” feed in Indonesia that lets users browse and purchase products from different categories, such as clothing and electronics. Of note, the feed sits on the app’s main page alongside its For You and Following feeds, which would be a major change to the product. The TikTok Shop service itself is currently available in select markets, including Indonesia, Vietnam, Singapore and the U.K.

Augmented Reality

  • Pokémon GO developer Niantic laid off 8% of its workforce, or around 85-90 people, amid the economic downturn. The company also canceled four upcoming projects, including Heavy Metal, a Transformers game that had already entered beta testing; Hamlet, a collaboration with the theater company behind “Sleep No More;” and two other projects known as Blue Sky and Snowball. Niantic has not been able to reproduce the success of its flagship game, having shut down a Harry Potter AR title and so far seen little adoption for its new AR game, Pikmin Bloom. The company is now working on a new AR game, NBA All-World.
  • Niantic’s Lightship is also powering a new “Game of Thrones” app designed to promote HBO’s upcoming prequel series “House of the Dragon.” The AR app will allow users to hatch a personalized dragon egg and raise their dragon at home. The app, produced by The Mill, will arrive on July 20.
  • Niantic launched Campfire, a new social app for its community that shows a map of your area with game experiences and activities from friends and other nearby players. The app helps users find local communities, add and manage friends, chat in one-on-one and group messages, join events and more.

Social

Facebook Groups new navigation and menu

Image Credits: Facebook

  • Facebook takes on Discord. The company this week rolled out new features for Facebook Groups including “Channels,” that allow users to connect with one another in smaller groups via chat or audio, similar to Discord, or in interest-based communities. The app will also test a new sidebar that will make it easier for users to find their groups more quickly, with the option to pin favorites to the top.
  • Facebook also rolled out NFTs. U.S. NFT creators will now be able to display NFTs under a new tab on their profiles. Meta recently launched NFTs on Instagram in May 2022.
  • Pinterest has a new CEO. The image pinboard and link-saving site’s co-founder and CEO Ben Silbermann stepped down after a 12-year run, turning over the reins to Google commerce boss Bill Ready. Previously, Ready ran Google’s shopping and payments arm after joining Google from PayPal, which acquired its startup Braintree for $800 million in 2013. Last fall, PayPal had been reported to be considering a Pinterst acquisition.
  • Instagram rolled out Reels APIs for developers. The new endpoints added to Instagram’s developer platform will allow developers to schedule Reels, publish to Instagram Business accounts, access social interaction metrics, reply to or delete comments, hide or unhide comments, disable or enable comments, find public Reels tagged with specific hashtags and identify Reels where an Instagram Business or Creator’s alias has been tagged or @mentioned.
  • Instagram users can now delete their accounts from within the iOS app. The app has complied with Apple’s new policy that states any app offering account creation must also now offer deletion. Instagram, however, puts accounts on hold for a month instead of immediately deleting them. If you log back in at any time, the deletion process is canceled.
  • Instagram is testing a change that turns all videos into Reels. The company said it’s trying to “simplify and improve” the video experience in the app. In reality, the move is yet another effort aimed at helping Instagram catch up with TikTok.
  • Short-form video app Triller filed for an IPO. The company confidentially filed for a U.S. IPO after ending its $5 billion merger with video ad software provider SeaChange International on June 14.

Messaging

  • WhatsApp is developing avatars. The Meta-owned company is working on an avatars feature similar to Apple’s Memoji or Snap’s Bitmoji, that could stand in for the user during video calls.

Streaming & Entertainment

  • Spotify launched a new personalized playlist option called “Supergrouper” that lets you create your own supergroup consisting of up to five artists. After you create and name your group, Spotify will curate a playlist of songs from the artists you selected, which you can also share on social media.
  • U.S. artists on Spotify can now use the app’s Marquee self-serve ad-buying option to promote releases across 14 markets via the Spotify for Artists dashboard. Marquee first launched in October 2019 but wasn’t able to target users outside the U.S. initially.
  • Twitch added a new Guest Star feature that lets streaming hosts bring up to five guests into a stream and swap them in and out.

Gaming

  • Meta VR developers call out the company for hypocrisy given its complaints over Apple’s App Store fees. The developers are frustrated with Meta’s 30% cut of their purchases and 15-30% cut of subscriptions, similar to Apple’s. They said Meta CEO Mark Zuckerberg had called Apple’s fees “monopoly rents,” but his company is doing the same thing.
  • The WSJ examined the growing complexity of hypercasual games which have begun adding leaderboards, multiplayer formats and in-app purchases to these previously simple games as they look to retain player retention amid market saturation. The games often also use rewarded ads or those that showcase someone playing poorly to encourage users’ sense of competition. Other ads will feature gameplay that doesn’t exist at all.

Travel & Transportation

  • Car rental apps in the U.S. hit all-time highs for new installs and MAUs in May, Apptopia found, indicating pent-up travel demand and possibly a desire to avoid the chaotic airline issues. New installs are projected to increase 27% YoY in Q2 2022, and MAUs are expected to increase 19.4%. Enterprise (39.6%), Hertz (36.8%) and Turo (34.3%) are growing MAUs the fastest, the firm said.

Reading & News

  • Storytelling community Wattpad launched a creator program that offers writers up to $25,000 in compensation. There’s also a new metric called “Engaged Readers” that helps track readers’ interest in stories and a creator portal where writers can get other tips about improving their content.
  • Substack has begun to convert some writers’ text into audio automatically using text-to-speech technology. Readers using the Substack iOS app will have the ability to hear posts read aloud as a result.

Image Credits: Substack

Government & Policy

  • Russia is issuing fines to companies that aren’t storing Russian citizens’ personal data in the country. Google, Twitch, Pinterest, Airbnb and UPS have already been fined, and the government has opened cases against LikeMe and Apple as well.

Security & Privacy

  • Google notified Android users who were compromised by Hermit government-grade spyware which targeted victims in Kazakhstan and Italy. Google also examined the Hermit iOS app which is sideloaded onto devices and included six exploits, including two zero-days. Apple said it revoked all known accounts and certificates associated with the spyware campaign.
  • T-Mobile launched a service called App Insights that allows marketers to target wireless customers based on the apps they have installed. Customer data is anonymized and pooled together with others with similar interests and behaviors. And users are opted in by default.
  • Instagram is accused of continuing to allow a man accused of selling photos of children to pedophiles to maintain his account and share images for two months following his arrest, Forbes reports.
  • Google updated its password manager for Chrome and Android, offering a way for users to manually enter new passwords across platforms, as well as a new unified user experience that automatically groups multiple passwords for the same sites or apps together, and a new shortcut on the Android home screen to get access to these passwords. The iOS Chrome app will also be able to generate strong passwords for you.

Funding and M&A

💰 Data analysis startup Zing Data raised $2.4 million in seed funding led by Kindred Ventures for a mobile app that lets business users work with data wherever they are in an accessible way. The product can connect with a variety of popular data sources, including Snowflake, Trino, Google BigQuery and Google Sheets, as well as databases like Postgres and MySQL. Users then choose a dataset and some fields to display, then can manipulate the data to see different views and can share charts with others.

💰 London-based Birdie, a provider of digital tools for in-home care, raised $30 million in Series B funding led by Sofina, which will be used to scale the business in Europe. The SaaS company works with 700 care businesses that deliver millions of visits per month to around 35,000 recipients and 8,000 family members. Its services are available through both an iOS and Android app.

💰 London-based fintech Cleo, an AI-powered app for financial assistance, raised $80 million in Series C funding led by Sofina. The app targets the U.S. market’s Gen Z users with budgets and savings guidance and education.

💰 New Delhi-based digital bank Progcap raised $40 million in a Series C extension, valuing the business at $600 million, up 3x since September 2021. Creation Investments and Tiger Global led the round. The app serves 700,000 small retailers across hundreds of Indian cities and towns.

 

Google today announced an update to its password manager that will finally introduce a consistent look-and-feel across the service’s Chrome and Android implementations. Users will soon see a new unified user experience that will automatically group multiple passwords for the same sites or apps together, as well as a new shortcut on the Android home screen to get access to these passwords.

In addition to this, Google is also now adding a new password-related feature to Chrome on iOS, which can now generate strong passwords for you (once you set Chrome as an autofill provider).

Image Credits: Google

Meanwhile, on Android, Google’s password check can now also flag weak and re-used passwords and help you to automatically change them, while Chrome users across platforms will now see compromised password warnings.

With this release today, Google will now also finally let you manually add passwords to its passwords manager (“due to popular demand,” Google says) and the company is bringing Touch-to-Login to Chrome on Android to log you in to supported sites with a single tap.

Image Credits: Google

Consumer rights groups in Europe have filed a new series of privacy complaints against Google — accusing the advertising giant of deceptive design around the account creation process which they say steers users into agreeing to extensive and invasive processing of their data.

The tech giant profiles account holders for ad targeting purposes — apparently relying on user consent as its legal basis. But the EU’s flagship data protection law, the General Data Protection Regulation (GDPR), bakes in a requirement for privacy by design and default, as well as setting clear conditions around how consent must be gathered for it to be lawful.

Hence the consumer groups’ beef — if deceptive design by Google is tricking users into accepting its tracking.

They argue the design choices the tech giant deploys around account creation make it far easier for users to agree to Google’s processing of their information to target them with “personalized” ads than to deny consent to its profiling of them for behavioral advertising.

Fast track to being tracked

The complaints highlight how more privacy-friendly options — described by Google as “manual personalization” — require users to take five steps and ten clicks (“grappling with information that is unclear, incomplete, and misleading”, as they put it); whereas it offers a one-click “Express personalisation” option that activates all the tracking, making it terrible for privacy.

They also point out that Google does not provide consumers with the option to turn all tracking ‘off’ in one click, further noting that Google requires account creation to use certain of its own products, such as when setting up an Android smartphone.

In other cases, users may voluntarily create a Google account — but, either way, the tech giant still presents skewed options nudging consumers to agree to its tracking of them.

“Regardless of the path the consumer chooses, Google’s data processing is un-transparent and unfair, with consumers’ personal data being used for purposes which are vague and far reaching,” the complainants also argue in a press release.

The series of GDPR complaints are being coordination by members group BEUC, aka the European Consumer Organisation.

Per BEUC, complaints have been filed to data protection agencies across EU Member States and markets, including by its member organizations in France, the Czech Republic, Norway, Greece and Slovenia.

It also notes that its German member, the vzbv, has written a warning letter to Google — ahead of potentially filing a civil lawsuit. While consumer groups in the Netherlands, Denmark and Sweden have written to their national DPAs to alert them to the practices, it adds.

Commenting on the action in a statement, Ursula Pachl, deputy DG of BEUC, said:

“Contrary to what Google claims about protecting consumers’ privacy, tens of millions of Europeans have been placed on a fast track to surveillance when they signed up to a Google account. It takes one simple step to let Google monitor and exploit everything you do. If you want to benefit from privacy-friendly settings, you must navigate through a longer process and a mix of unclear and misleading options. In short, when you create a Google account, you are subjected to surveillance by design and by default. Instead, privacy protection should be the default and easiest choice for consumers.”

This is not the first privacy-related complaint EU consumer rights have made about Google’s practices. They also raised a complaint focused on its collection of location data back in 2018 — but it took until February 2020 for Google’s lead EU data supervisor, Ireland’s Data Protection Commission (DPC), to start an enquiry. And, more than two years later, that data probe remains ongoing.

Back in May, the DPC’s deputy commissioner, Graham Doyle, told TechCrunch it was expecting to submit a draft decision on the Google location data enquiry to other DPAs for review “over the coming months”. However if there is disagreement over Ireland’s approach it could add many more months before agreement on a final, consensus decision is reached. So a resolution of that long-running complaint may still not arrive this year.

The DPC also still hasn’t issued decisions on other long-running GDPR complaints against Google. Such as a major complaint about its adtech  which it began investigating in May 2019 — and is now being sued over for inaction.

Another complaint — against’s Google use of so-called ‘forced consent’ on its Android mobile platform — dates back to May 2018. Although it’s not clear if the DPC ever opened an enquiry in that case. France’s data protection watchdog, the CNIL, proceeded to investigate — and fined Google $57M back in January 2019 over breaches of transparency and consent attached to how it operates Android. (The CNIL decided to had competence in that case since Android-related decisions were likely taken in the US, rather than in Dublin, where Google’s regional HQ is based.)

But Ireland has yet to issue a single GDPR decision against Google.

BEUC is not hiding its frustration at the DPC’s lack of enforcement over complaints against the tech giant.

“Google is a repeat offender,” said Pachl. “It is more than three years since we filed complaints against Google’s location-tracking practices and the Irish DPC in charge has still not issued a decision on the case. Meanwhile Google’s practices have not changed in essence. The tech giant still carries out continuous tracking and profiling of consumers and its practices set the tone for the rest of the market.”

“We need swift action from the authorities because having one of the biggest players ignoring the GDPR is unacceptable,” she added. “This case is of strategic importance for which cooperation among data protection authorities across the EU must be prioritised and supported by the European Data Protection Board.”

Issues around Google’s tracking of account users is separate to the advertising giant’s cookie-based tracking — where it deploys technologies to track users across third party websites and apps.

The latter process has been the subject of other EU complaints that have led to some enforcements in recent years, with France’s data protection watchdog hitting Google with fines approaching $300M for cookies tracking-related breaches under the bloc’s ePrivacy Directive — after which Google made some changes to the cookie consent banner it shows web users in Europe.

Strategic complaint

Pachl’s remark about the Google account sign-up complaint being of “strategic importance” refers to BEUC’s expectation that the case will trigger the launch of a procedure under the GDPR’s cooperation mechanism (aka Article 60) — which it hopes will function more smoothly than it has been since 2018, when the Google location data complaint was filed.

The reason BEUC is hoping for smoother sailing now is because of an agreement EU DPAs reached in April — aka the “Vienna declaration” —  when they committed to enhance their enforcement cooperation on cross-border GDPR cases of “strategic importance”.

A complaint against a tech giant like Google clearly hits that bar. But the older, Google location data complaint has been saddled with a number of cooperation-related issues which have contributed to slowing down investigation and delaying a decision in that case.

Discussing what changes BEUC hopes to see being applied by regulators in tackling this fresh cross-border Google complaint, David Martin Ruiz, team leader for digital policy at the organization, told us: “We expect that the treatment of the complaints is prioritised as it touches upon practices by a major market player in the surveillance economy which affect millions of Europeans. The first time it took around 6 months just to name the lead authority. Also, we expect better, closer cooperation among the authorities, for example in terms of checking the admissibility of the complaints, and that this is done only once by the authority which receives the complaints. Of course, we expect that closer cooperation and strategic prioritisation by the authorities involved leads to a swift, comprehensive investigation of the complaints and efficient enforcement.”

Still, Ruiz declined to offer a prediction for how much faster the revised cooperation procedure will be able to deliver enforcement against Google, saying: “It is hard to put a concrete number on this but we certainly hope it takes less than the one that is ongoing, and we are not here 3 years from now still waiting for a draft decision.”

The European Commission, which has also been critical of adtech giants’ approach to compliance with EU privacy laws, recently defended slower regulatory enforcements in these major, cross border cases.

In a letter to the European ombudsperson — which has been looking into the EU executive’s monitoring of the GDPR following complaints about the Commission’s own oversight of the regulation — justice commissioner, Didier Reynders, likened the level of complexity involved in these big investigations to antitrust cases, writing:

” … it is important to make a distinction between cases which are relatively straightforward and do not require extensive investigations and cases which require complex legal and economic assessment or pose novel issues. Those complex cases, for instance those touching on issues relating to the business model of big tech multinational companies, might require several months or years of investigations, similarly to what happens for competition law investigations. This is particularly relevant for Ireland since many of such companies have their main establishment in this Member State.”

Responding to Reynders’ point, Ruiz told TechCrunch: “We agree and understand that these are complex issues and the authorities need time to build strong cases. However, we have seen problems that go beyond the time it takes to investigate these cases (e.g. a DPA narrowing down the scope of complaints when deciding to open their own investigation). Moreover, a lot of the big complaints that are taking years are actually not normal complaints, in the sense that they come already backed with a lot of legal analysis and factual evidence, aiming to facilitate the tasks of the DPAs. Also, of course, the time it takes to resolve these cases is also an illustration of deeper issues, like a lack of sufficient resources. Hopefully, strengthened cooperation and strategic prioritisation, as per the Vienna declaration, will help reduce the time it takes to investigate these cases. Complexity and the time it takes to investigate cannot be an excuse for inaction.”

BEUC isn’t calling for major revisions to GDPR to solve the problem of timely enforcement against Big Tech. But it is pushing for DPAs to make a whole series of process changes, individually and collectively, in order to address issues like the bottleneck of cases linked to the regulation’s one-stop-shop/lead data supervisor structure, which has enabled the problem of forum shopping.

“In a nutshell, regarding Big Tech, the first step is to stop the ‘bottleneck’,” he said. “Basically, DPAs, in particular one DPA which has oversight over many of the Big Tech companies, needs to deliver decisions on the open cases. And both the lead DPA, and the rest of the DPAs in the EDPB, need to be strict and ambitious in their interpretation and application of the rules. Also, if the lead DPA is not delivering the decisions, the others must make full use of their powers and take urgent measures. There needs to be a clear signal to Big Tech that window dressing and cosmetic transparency measures won’t do anymore. There are some fundamental issues in their core business practices that must be addressed, because they run contrary to the very essence of the GDPR.”

“Of course it is a concern that enforcement does not move as fast as market practices, and companies are changing things all the time. It is very important to underline that a company tweaking and correcting something should not erase past infringements and leave them unpunished, especially if they have been going on for years and they have affected millions of people. Otherwise, it is a very dangerous signal we are sending to companies,” he added. “We would be telling them ‘it is ok to infringe the GDPR as long as you are not caught, and if you are caught, just fix it quickly and there will be no consequences.’ This is the opposite of what should happen. Infringements must have consequences. Otherwise there is no justice, and no deterrent effects.”

Google is going to start paying for its use of Wikipedia information to help power its knowledge panels in Google Search. The search giant, along with the digital library the Internet Archive, are the first customers for the still relatively new commercial product launched by the Wikimedia Foundation — the nonprofit that operates Wikipedia. Its new service, Wikimedia Enterprise, offers access to Wikimedia content to companies that reuse and source Wikipedia and other Wikimedia projects at a high volume.

For years, Google has used information from Wikipedia to offer web searchers quick answers and basic facts through the use of what it called knowledge panels, first introduced in 2012. This feature pulls information from freely available online resources, including Wikipedia, Google Books, and other sources. Other tech giants have also leveraged Wikipedia’s information in their own products. Facebook, for example, in 2020 had tested Wikipedia-powered information panels similar to Google’s. Apple today returns Wikipedia-powered results in its Spotlight Search feature.

Various tech companies large and small have also relied on Wikipedia data to enhance their own products and services.

The Wikimedia Enterprise service has been live for a year, servicing commercial customers on an opt-in basis. However, it hadn’t announced its first customers until now. With Wikimedia Enterprise, customers of any size gain access to the service’s offerings including customer support and Service Level Agreements at prices based on their volume of use, much like any other product aimed at businesses. There’s also a self-serve free trial offering 10,000 on-demand requests and unlimited access to a 30-day Snapshot.

The organization says the product is now covering its current operating costs and has a growing list of users who are exploring its use. But it is not a requirement to use the commercial product, even if the customer accessing the data is large, like Google. All Wikimedia projects, including its suite of publicly-available datasets, tools, and APIs the Wikimedia Foundation offers will continue to be available for free use to all users, the foundation said in a June announcement.

As a result of their deal, Google and Wikimedia said they’re working together to make the content sourcing process more efficient.

“Wikipedia is a unique and valuable resource, created freely for the world by its dedicated volunteer community,” said Tim Palmer, Managing Director, Search Partnerships at Google. “We have long supported the Wikimedia Foundation in pursuit of our shared goals of expanding knowledge and information access for people everywhere. We look forward to deepening our partnership with Wikimedia Enterprise, further investing in the long-term sustainability of the foundation and the knowledge ecosystem it continues to build.”

Meanwhile, the Internet Archive, which runs the digital archive known as the Wayback Machine, will leverage the commercial service as well to improve its own offerings.

“The Wikimedia Foundation and the Internet Archive are long-term partners in the mission to provide universal and free access to knowledge. By drawing from a real-time feed of newly-added links and references in Wikipedia sites – in all its languages, we can now archive more of the Web more quickly and reliably,” said Mark Graham, Director of the Internet Archive’s Wayback Machine.

The commercial product was a part of the Wikimedia Foundation’s long-term strategy which included recommendations involving advancing knowledge equity and knowledge as a service, it said.

Last week I wrote about an AI startup that’s building technology that can alter, in real time, the accent of someone’s speech. But what if the AI goal instead is to make it possible for people speaking in whatever way they do, to be understood just as they are, and to remove some of the bias inherent in a lot of AI systems in the process? There’s a major need for that, too, and now a UK startup called Speechmatics — which has built AI to translate speech to text, regardless of the accent or how the person speaks — is announcing $62 million in funding to expand its business.

Susquehanna Growth Equity out of the U.S. led the round with UK investors AlbionVC and IQ Capital also participating. This is Series B is a big step up for Speechmatics. The company was originally spun out back in 2006 of AI research in Cambridge by founder Dr. Tony Robinson, and prior to this had only raised around $10 million (Albion and IQ are among those past backers, along with the CIA-backed In-Q-Tel and others).

In the interim it has built up a customer base of some 170 — it only sells B2B, to power consumer-facing or business-facing services — and while it doesn’t disclose the full list, some of the names include what3words, 3Play Media, Veritone, Deloitte UK, and Vonage, which variously use the tech not just for making transcriptions in the traditional sense; but for taking in spoken words to help other aspects of an app function, such as automatic captioning, or to power wider accessibility features.

Its engine today is able to translate speech to text in 34 languages, and in addition to using the funding both to continue improving the accuracy there, and for business development, it will also be adding in more languages and looking at different use cases, such as building speech to text that can be used in the more tricky environment of motor vehicles (where motor noise and vibrations impact how AIs can ingest the sounds).

“What we have done is gather millions of hours of data in our effort to tackle AI bias. Our goal is to understand any and every voice, in multiple languages,” said Katy Wigdahl, the CEO of the startup (a title she co-held with Robinson, who has since stepped back from an executive role recently).

This manifests in the company’s product focus as well as its mission, and that’s something it’s also looking to expand.

“The way we look at language is global,” Wigdahl said. “Google will have a different pack for every version of English but our one pack will understand every one.” It initially only made its tech available by way of a private API that it sold to customers; now in an effort to bring in more users and potentially more paying users, it’s also offering more open API tools to developers to play with the tech, and a drag-and-drop sampler on its site.

And indeed, if one of Speechmatics’ challenges is in training AI to be more human in its understanding of how people speak, the other is to carve out a name for itself against other major providers of speech-to-text technology.

Wigdahl said company today competes against “big tech” — that is, major companies like Amazon, Google and Microsoft (which now has Nuance) that have build speech recognition engines and provide the tech as a service to third parties.

But it says it consistently scores better than these in tests for being able to comprehend when languages are spoken in the many ways that they are. (One test it cited to me was Stanford’s ‘Racial Disparities in Speech Recognition’ study, where it recorded “an overall accuracy of 82.8% for African American voices compared to Google (68.6%) and Amazon (68.6).” It said that “equates to a 45% reduction in speech recognition errors — the equivalent of three words in an average sentence. It also provided TC with a “competitor weighted average”: 

There is indeed a massive opportunity here, though, when you consider that between smaller developers and massive, outsized technology giants like Apple, Google, Microsoft and Amazon there are hundreds of giant companies that might not be quite at the level (or interest) of building in-house AI for this purpose, but if you take for example a company like Spotify, are definitely are interested in it, and definitely would prefer not to be reliant on those huge companies, which are also sometimes their competitors, and sometimes their outright foils. (To be clear, Wigdahl did not tell me Spotify was a customer, but said that that is a typical example of the kind of size and situation in which someone might knock on Speechmatics’ door.)

That too has been partly why investors are so keen to fund this company. Susquehanna has a history of backing companies that look like they might give the power players a run for their money (it was an early and big backer of Tik Tok).

“The Speechmatics team are undoubtedly a different pedigree of technologists,” said Jonathan Klahr, MD of Susquehanna Growth Equity, in a statement. “We started tracking Speechmatics when our portfolio companies told us that again and again Speechmatics win on accuracy against all the other options including those coming from ‘Big Tech’ players. We are primed to work with the team to ensure that more companies can get exposed to and adopt this superior technology.” Klahr is joining the board with this round.

Indeed, as tech becomes more naturalized and those making it look for more ways to reduce any and all friction that there might be around usage of that tech, voice has emerged as a major opportunity point, as well as a pain point. So having tech that works in “reading” and understanding all kinds of voices can potentially get applied in all kinds of ways.

“Our view is voice will become the increasingly dominant human-machine interface and Speechmatics are the category leaders in applying deep learning to speech, with category defining accuracy and understanding across industry use-case and requirements,” added Robert Whitby-Smith, a partner at AlbionVC. “We have witnessed the impressive growth of the team and product over the last few years since our Series A investment in 2019 and as responsible investors we are delighted to support the company’s inclusive mission to understand every voice globally.”