Steve Thomas - IT Consultant

Arrikto’s mission is to enable data scientists to build and deploy their machine learning models faster. The company, which raised a $10 million Series A round in late 2020, is building its platform on top of Kubeflow, a cloud-native open-source project for building machine learning operations that was originally developed by Google but which is now mostly managed by the community. Until now, Arrikto’s main product was a self-managed enterprise distribution of Kubeflow for enterprises (aptly named ‘Enterprise Kubeflow’) that wanted to run it in their data centers or virtual private clouds. Today, the company is also launching a fully managed version of Kubeflow.

“Pushing ML models from experimentation all the way to production is incredibly complex,” Arrikto CEO and co-founder Constantinos Venetsanopoulos told me. “We see a few common reasons for this. Number one is data scientists are essentially not ops experts and ops people aren’t data scientists — and they don’t want to become data scientists. Second, we have seen an explosion of ML tools the last couple of years. They are extremely fragmented and they require a lot of integration. What we’re seeing is people struggling to stitch everything together. Both of those factors create a massive barrier to entry.”

Image Credits: Arrikto

With its fully managed Kubeflow, Arrikto aims to give businesses a platform that can help them accelerate their ML pipelines and free data scientists from having to worry about the infrastructure, while also allowing them to continue to use the tools they are already familiar with (think notebooks, TensorFlow, PyTorch, Hugging Face, etc.). “We want to break down the technical barrier that keeps most companies from deploying real machine learning capabilities,” said Venetsanopoulos.

With Kubeflow as a Service, the company argues, data scientists will get instant access to an end-to-end MLops platform. It’s essentially Arrikto’s Enterprise Kubeflow with a lot of custom automation tooling on top of it to abstract away all of the details of the Kubernetes platform it sits on top of.

For now, Arrikto will only run on a single cloud but in the long run, the plan is to support the three major cloud providers to ensure low latencies (and reduce the need to move lots of data between clouds).

Interestingly, Venetsanopoulos argues that the company’s biggest competitor right now isn’t other managed services like AWS’ SageMaker but businesses trying to build their own platforms by stitching together open-source tools.

“Kubeflow as a Service gives both data scientists and DevOps engineers the easiest way to use an MLOps platform on Kubernetes without having to request any infrastructure from their IT departments,” said Venetsanopoulos. “When an organization deploys Kubeflow in production – whether on-prem or in the cloud – Arrikto’s Kubeflow as a Service will turbocharge the process.”

The company, which now has about 60 employees, will continue to offer Kubeflow Enterprise in addition to this new fully managed service.

Supabase, which bills itself as an open source alternative to services like Google’s Firebase, today announced that it has raised an $80 million Series B funding round led by Felicis Ventures. Coatue and Lightspeed also participated in this round, which brings the company’s total funding to date to $116 million.

The service can’t, of course, match Firebase on a feature-by-feature basis, but it offers many of the core features that developers would need to get started, including a database, storage and authentication service, as well as the recently launched Supabase Edge Functions, a serverless functions-as-a-service offering.

Image Credits: Supabase

As Supabase CEO and co-founder Paul Copplestone told me, the company saw rapid growth in the last year, with a community that has now grown to more than 80,000 developers who have created over 100,000 databases on the service — a growth of 1,900% in the last 12 months.

“We’re moving upmarket and finding more and more customers who are using us as a Postgres-as-a-service offering — basically as an alternative to [Amazon] RDS. And Heroku, of course, at the moment is an interesting one since so many people are looking to migrate. So basically, anyone who would be looking at a Postgres-as-a-service offering, we’re starting to see more and more of these people reach out directly,” he said, and also noted that it’s not just the database itself that users are interested in but also the company’s tooling around it, including autogenerated APIs and GraphQL extensions, as well as the ability to scale the database up as needed. “It’s really focused on making it very easy for developers to get started and build on top of,” he said.

The investors, too, are looking at Supabase because of its focus on its database. “If you look at the world’s most valuable companies, even in the current market environment, it’s either database or security, both of which, right now, are two top areas,” explained Felicis founder and managing partner Aydin Senkut. “When we look at database companies […], first of all, I need to give credit to [Paul Copplestone] and [co-founder Anthony Wilson]. They are very impressive as founders. They truly move really fast. The speed at which they ship code and impress customers is honestly at a level that I’ve only seen at companies like Google and Shopify.”

He also noted that Supabase was obviously able to show impressive growth numbers, with the expectation that the team will now be able to execute on this and monetize the platform effectively. “We’re monetizing on usage of the infrastructure and it’s a very clear path to revenue and one that we hope to see a lot more growth in over the next few years,” said Copplestone when I asked him about the company’s monetization strategy.

With this new funding, Supabase plans to double its team in order to build out its platform (with a focus on enterprise features) and go-to-market strategy. Until now, most of the company’s growth has been organic.

Hardware, as the saying goes, is hard; but there remains an opportunity for startups that focus on specific niches to build viable businesses. In the latest example, reMarkable, the Oslo, Norway-based maker of a simple and slick $299 e-paper tablet of the same name, says that it has passed 1 million devices sold since 2017 and recently raised money at a $1 billion valuation after making revenues of $300 million and operating profits of $31 million in 2021.

Founder and CEO Magnus Wanberg said reMarkable is not disclosing the amount of the investment, nor who was involved, except to say that it’s a minority stake in the company and that it came from multiple international (not Norwegian) investors. The company employs 300+ people and Wanberg says it is still “majority employee owned.”

“Nothing’s fishy but we’re keeping it confidential,” he said when I asked why the reticence on the investment. He noted that while the deal was made last year, the startup is disclosing it now as “a good indication, a signal out to the world” of how the company is doing. “This is just sprinkles for us,” he said more than once during our interview.

Spark, which led a $15 million investment into the company in 2019 (when it had sold a mere 100,000 devices), remains a shareholder in the company, Wanberg added. And it seems that the startup is open to raising more to invest in growth (perhaps another reason for speaking about its latest investment now).

reMarkable’s growth and milestone investment are remarkable (sorry had to do it) in themselves, but what is also interesting is to consider why and how a company like reMarkable is finding traction.

A large number of consumers definitely do not seem to mind being very online, but there is definitely a seam of users looking for ways to use new technology that doesn’t at the same time spell being locked into the litany of pings and distractions that come with so much connected technology today. And increasingly we are seeing companies building for that seam of users. reMarkable is one of them. Wanberg believes that this company’s success to date is due in large part to the focus it has on “focus.”

“The future of the tablet as we see it is in the direction that Apple and others are heading, a fusion of laptop and tablet forms,” which complements how people also use smartphones, he said in an interview. “But our offering is a third device, a focussed space for books, drawing and notes, where you can really avoid distractions and procrastination. That is our positioning.”

Even its small concessions to aesthetics — the sound and feel of reMarkable’s pen on its screen are more akin to a writing utensil moving across paper than a stylus gliding on the glass of your iPad — feel in aid of trying to help people forget they are using a piece of electronics.

The company’s business model was originally banked around selling hardware, which today is used by “hundreds of thousands” of active users. The company’s reMarkable 2 model, launched in 2020 as the Covid-19 outbreak went global, really rode the wave of more people doing more things at home and trying to find more nuanced uses for their quiet time.

But in October of last year reMarkable made a bet on aligning itself closer with that idea of focus, launching a subscription service called Connect.

While others like Apple have also built out recurring services businesses based around its hardware, this was an especially important milestone for reMarkable, which has only released two devices since being founded in 2013 and touts that you do not need to buy a new device for at least 10 years when you buy one.

Billed monthly in two tiers (normal at $7.99/month and “lite” at $4.99/month), Connect is how the startup plans to make a substantial part of its money going forward (indeed, when I asked it declined to give any projections for device sales for 2022). Among its features, Connect provides continuous software updates; cloud storage; connectivity with Dropbox, Google Drive and One Drive if you want it; an extended warranty for the tablet; handwriting conversion; screen sharing and a feature to send by email — in other words, a few features to get information into and out of your reMarkable tablet, but otherwise nothing especially real-time and dynamic.

In this way, even though it calls itself a tablet, the reMarkable is more like an e-reader, Wanberg said.

“With an E-reader and you own and use it for quite a long time,” he explained. “In our business, it’s not a new-model-every-year dynamic. There is no emphasis on new model ownership. We don’t want to force our company to slap on some iteration for the sake of it. There is true innovation, major steps in terms of what we can offer the customer. We also think it’s great from a sustainability perspective [to move away from] pushing out new hardware.”

Wanberg didn’t disclose how many have adopted Connect so far, only noting that so far it has had a “great response” as reMarkable “tries to prove to customers that we can serve them on a running basis.” Given that Connect only launched in October of last year, it may be too early to tell. Its $31 million operating profit in 2021 was more than triple its profit in 2020 ($10 million), but reMarkable noted that this was “driven largely by sales of its latest paper tablet.”

 

2021

2020

2019

Revenue*

$303 million

$138 million

$42 million

EBITDA*

$31 million

$10 million

$-3 million

Annual growth

120%

229%

69%

*Converted from NOK to USD with rate as of 31.12.21 according to The Central Bank of Norway – 8,8194

Hi friends.

In case you missed it last week: I’m Greg, and I’m handling Week in Review now that Lucas is off with Anita building their new crypto-focused podcast/newsletter, Chain Reaction.

I’m teeeechnically supposed to be on vacation today, but I figured it was probably not cool to throw the newsletter to someone else ONE WEEK after taking over, so I popped back in for this one. I normally have very good work/life balance, I promise! Sure, I have way-too-many coworkers’ numbers set to automatically bypass my phone’s “Do Not Disturb” toggle and, yeah, sometimes I wake up in the middle of the night to a phantom Slack ding that didn’t actually ding, but… hm. Perhaps I take back that promise.

the big thing

If there’s a “big thing” this week, it’s unfortunately not one that’s fun to write about at all: Employees in the startup world are getting hit hard with layoffs right now, seemingly with a new set of cuts every other day.

First was Robinhood, announcing it would layoff 9% of its full-time employees.

Then Netflix, cutting (but not shutting down!) much of its newly formed in-house publication, Tudum.

Then came Thrasio, Cameo, On Deck and MainStreet. And I’m sure there are some I missed or we haven’t heard about yet.

Why now? The short version: A lot of these companies saw massive positive shifts in their user base (in terms of size, usage or both) with the pandemic and adjusted accordingly. Now that we’re arguably on the other side of the pandemic (or as close as we’ll get to some “other side”) and things are shifting in another direction…

Natasha Mascarenhas and Amanda Silberling have a deeper dive on the layoffs of late, and some of the reasoning behind each. Check that out here.

other things

What else happened this week? Here’s some of the stuff people were reading most on the site:

The “father of the iPod” shows off his prototype collection: Tony Fadell, the man behind such iconic devices as the iPod, iPhone, and Nest Thermostat, is writing a book on building things — and as part of the process, he dusted off his collection of once oh-so-secret prototypes and concept art. He shared some great ones with us, including an absolutely bizarro iPod Mini/phone hybrid with a swiveling head.

Rocket Lab catches a rocket booster… with a helicopter: With more space rocket parts becoming reusable, companies are still working out the best/safest/most efficient way to actually… you know, get those parts back. This past weekend Rocket Lab set out to use a HELICOPTER to catch a reusable booster as it fell from the sky… and succeeded! At least, at first. I won’t even fly most video game helicopters because they’re always too dang hard, so this whole thing breaks my brain.

Apple, Google, and Microsoft team up to kill passwords: It’s not every day you see Apple, Google and Microsoft working together on something… but this week the trio announced that they’re teaming up to tackle a beast that causes all of them all sorts of trouble: passwords. If all goes to plan, over the next year they’ll implement a passwordless standard that lets you use your smartphone’s fingerprint reader or face scanner to sign into things across macOS/Safari, Android/Chrome, and Windows/Edge.

Instagram is testing a full-screen experience: Why? It’s pretty damned hard to answer that without using the word “TikTok.”

Google is trying to get better about removing personal information: Ever been poking around Google and found your home address or phone number on a sketchy website that refuses to remove it? Google is — after many, many years of complaints — rolling out a process for getting those search results zapped. Zack has a step-by-step for how to submit a request… but as for how long it might take to actually go through? TBD.

added things

We have a paywalled section of our site called TechCrunch+. It costs a few bucks a month and it’s full of very good stuff! From this week, for example:

UiPath’s plunging valuation: UiPath’s valuation has absolutely plummeted over the past year. Why? Ron and Alex have some thoughts.

6 problems investors look for: You’ve built something cool and it seems to be finding an audience, and now you’re ready to raise some money… or are you? Bill Petty of the investment firm Tercera outlines six things that every investor is going to look for in the due diligence process.

The common mistakes founders make with financial projections: Financial projections don’t exist just to make potential investors happy. In this post, Jose Cayasso, co-founder of founder prep platform Slidebean, breaks down some of the most common mistakes he sees among the founders they work with.

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

Fortnite finds its way back to iOS

Epic Games’ battle with Apple has seen its mobile gaming title Fortnite banned from the App Store ever since Epic broke Apple’s rules around in-app purchases, then used its ban to wage a legal fight over antitrust issues. But this week, Epic Games found a way to return to the iPhone, and with the help of a notable partner, too. The company teamed up with Microsoft’s Xbox Cloud Gaming service which runs games on the iPhone and iPad within the browser. Now Fortnite has joined the Xbox Cloud Gaming lineup, meaning customers on iOS will once again be able to play the popular game. The move follows Nvidia’s announcement earlier this year that Fortnite would become playable through its own GeForce Now service.

Of note, Microsoft said Fortnite is the first free-to-play title to join its cloud gaming service, and says users won’t need a GamePass subscription in order to play it. All users need to do is go to Xbox.com/play on their device’s web browser, then sign-in with their Microsoft Account to get started.

“It’s an important step to add a Free-to-Play title to the cloud gaming catalog as we continue our cloud journey,” said Catherine Gluckstein, vice president and head of Product, Xbox Cloud Gaming, in a blog post. “We’re starting with Fortnite and will look to bring more Free-to-Play games people love in the future.”

Apps go to NewFronts!

This week, IAB’s NewFronts held its hybrid event where companies pitched their upcoming offerings to ad buyers. While a number of streamers were there to promote their lineups and new ad products, including an interesting set of new digital ad insertion features, several app makers, including Meta, Twitter, Snap and TikTok, were also in the mix, as they’re no longer just social networks but entertainment platforms in their own right. TechCrunch covered the event and the various announcements, which included the following:

  • TikTok: The short-form video app introduced TikTok Pulse, a new contextual advertising solution that ensures brands’ ads are placed next to the top 4% of all videos on TikTok. Notably, the solution will also be the first ad product that involves a revenue share with creators, offering a 50/50 rev share. Ads can be targeted across 12 categories, like beauty, fashion, pets, gaming, TV & movies, auto, Spanish language, sports and recreation, and others, and can be purchased through the TikTok Ads Manager by selected buyers.
  • Snap: The social app unveiled a Cameo partnership, a new ad format and more original programming during its presentation. The Snap x Cameo Advertiser Program lets Snapchat’s video advertisers partner with Cameo’s top talent to create custom short-form video ads for Snap. The new ad product, Snap Promote, offers content partners a way to expand beyond their organic reach with Snapchat’s For You feed on the Stories page. The company also expanded its slate of originals with programs from Simone Biles, La’Ron Hines, Marika Sila and Kairyn Potts and others, and renewed deals with “Charli Vs. Dixie,” featuring the TikTok stars, among others.
  • Meta: The social network touted its creators and video usage at the event, with a highlight on Reels. Alongside the announcement, Meta informed creators it will now pay for original content in Facebook Reels. The company said it would pay specifically for original content and will roll out new “challenges” that allow creators to earn more as they complete different goals. Among some of the metrics it shared with advertisers: 50% of the time spent on Meta’s platforms now involves video; over 2 billion people watch videos with in-stream ads; and more than 700 million people are using AR effects each month.
  • Twitter: The soon to be Elon-owned social network had to convince wary advertisers that its platform would still offer a brand-safe experience for their marketing messages after Elon Musk turns it into a “free speech” social network — a move that advertisers worry will mean hate speech and abusive content could become more prevalent. Twitter promoted its premium video and media partnerships to demonstrate that there would be higher-quality content they could position themselves against, including content from Condé Nast’s red carpet livestreams, live WBNA games, a show about what people are streaming from E! News and other content from Essence, Revolt and more.

Weekly News

Platforms: Apple

  • Apple released its fourth betas of iOS 15.5 and iPadOS 15.5 to developers just a week after beta 3. The coming update will allow developers of reader apps to add a link to an external website so users can sign up and manage accounts outside the App Store. Apple also released watchOS 8.6 and tvOS 15.5.

Platforms: Google

  • Google’s developer conference I/O is coming up next week, and the news of its new Wear OS device has already leaked. We’re expecting a big event with a focus on more than just Android and wearables, however. In previous years, Google used the I/O keynote to announce all sorts of projects across its many platforms and services.

E-commerce

  • DoorDash stock rose 10%+ after reporting 35% sales growth during earnings. The company brought in $1.46 billion in revenue, ahead of estimates of $1.38 billion. But it also lost $0.48 per share instead of the expected $0.41.
  • Amazon no longer allows downloads of digital content using its Android shopping app following the changes to the Google Play Store policy that requires apps to use Google’s own payment systems.
  • Starbucks will begin selling NFTs this year, offering access to “unique experiences and benefits.” Details about the company’s plans were sparse, but it has brought in Adam Brotman, the architect of its Mobile Order & Pay system and the Starbucks app, to advise on the project, hinting at a mobile component.
  • Shein became the most-downloaded app in the U.S. on May 3, passing TikTok, Instagram, Twitter and Amazon to gain the No. 1 spot, noted Marketplace Pulse.

Fintech

  • Fintech Block reported its revenue down 22% YoY to $3.96 billion in its Q1 earnings, when Wall Street was expecting $4.1 billion; but profit was up 34% to $1.29 billion. Cash App’s bitcoin revenue, however, fell 51% YoY to $1.73 billion. The stock climbed 5% on the results.
  • European crypto app installs grew to nearly 100 million in 2021, Sensor Tower said, and reached 300 million MAUs.
  • Following last week’s layoffs, Robinhood launched Stock Lending, a way that retail investors can lend out any fully paid stocks in their portfolio for extra income.
  • Stripe announced a new product, Financial Connections, a Plaid competitor that lets Stripe’s customers connect directly to their customer’s bank accounts. A bit of drama ensued.

Social

  • A group of nearly two dozen investors, including Sequoia Capital, Andreessen Horowitz, crypto exchange Binance and asset management firm Fidelity and others, have invested over $7.1 billion to back Elon Musk’s $44 billion bid to acquire Twitter, according to a new filing out this week. Oracle co-founder Larry Ellison, who is also an investor in Tesla, was the largest investor, offering a check of $1 billion. This was followed by Sequoia ($800 million), VyCapital ($700 million), Binance ($500 million), and a16z ($400 million). Musk said the margin loan of $12.5 billion he received from Morgan Stanley and other banks has been cut to $6.25 billion as result. He also increased his equity commitment to $27.25 billion.
  • Instagram began testing a full-screen home feed where both images and videos take up more screen space, similar to TikTok’s full-screen video feed. The test is clearly meant to better emulate the TikTok experience, but feels off due to the mix of formats, which makes it more difficult to interact and comment.
  • Twitter rolled out new Spaces features, including access to analytics for hosts and co-hosts on mobile. The company is also testing a feature that will tweet out a Space card once hosts start the Space. And it’s adding more information about the Space in the card that appears at the top of users’ timelines.
  • CNBC reported Elon Musk may serve as temporary CEO after his takeover of Twitter.
  • Celeb greetings app Cameo laid off 87 people, a quarter of its workforce, citing changing market conditions and the need to balance costs with cash reserves. Protocol reported CTO Rob Post, marketing exec Emily Boschwitz, CPO Nundu Janakiram and Chief People Officer Melanie Steinbach were among the departures.
  • Twitter’s open source Bluesky unit released early code for developers to test. The Authenticated Data Experiment (or ADX) is available on GitHub, but is not complete. Bluesky CEO Jay Graber said this release is the start of a semi-public development process.
  • Instagram began testing a “Get Quote” button with select businesses on its app, which allows businesses to set up custom questions to ask customers prior to starting a conversation.
  • Twitter began testing Twitter Circle, a feature similar to Instagram’s“Close Friends,” which allows users to post only to select friends and followers more privately. For people with larger follower bases, it’s a struggle to set up. It also defies what many today use Twitter for: attention.
  • More news about Twitter’s edit button emerged. According to reverse engineer Jane Manchun Wong, the Edit Tweet button will allow users to create a new tweet with different content. But to make sure Twitter users know the tweet has been changed from the original, a label (alongside an icon of a small pen or pencil) will appear at the bottom of the tweet. The label’s text will simply say “Edited.” And if you click on the word “Edited,” you’ll be taken to the tweet’s edit history. Users will have 30 minutes to make tweet edits.

Dating

  • Match named Zynga President Bernard Kim as its new CEO, replacing Shar Dubey. Kim has been president of Zynga since 2016 and has overseen global marketing, user acquisition, revenue, consumer insights, data science, product management, mergers and acquisitions, and communications. The change comes as Match has been making plans to create a “dating metaverse.”
  • The news was announced alongside Match earnings, where it reported Q1 revenue of $799 million, up 20% year over year, above Wall Street estimates of $794 million and operating income up 10% year over year of $208 million, representing a 26% operating margin. Tinder reached 10.7 million paid subscribers.
  • Alex Hofmann, a former president at musical.ly (now known as TikTok), founded 9count, a parent company to various apps including the friendship-making app Wink. Now he’s launching 9count’s latest addition: a dating app called Spark which shows you everyone around you in a grid, instead of asking you to swipe. But you can only receive messages from people if you’ve both liked each other.

Messaging

  • Telegram’s new iOS beta hints at the company’s monetization model expansion. The beta offers reaction emoji and stickers for Telegram Premium subscribers, which are marked as Premium exclusives.

Image Credits: Telegram

  • WhatsApp announced emoji reactions are now available in the latest version of the app and users can now share files up to 2GB in size, protected by end-to-end encryption. It also said it’s slowly rolling out the ability to add up to 512 people to a group. The features follow the news that WhatsApp is expanding with the launch of Communities, a way for organizations and larger groups to communicate via its app in a more structured way.

Streaming & Entertainment

Image Credits: Spotify

  • Spotify became the first music streamer to launch on Roblox. The company debuted “Spotify Island,” a place where artists and fans will gather to play interactive quests, unlock exclusive content and buy artist merchandise. While it didn’t announce any plans for virtual concerts, the venue already includes a stage.
  • Spotify is also shutting down its lightweight listening app, Spotify Stations, first launched in 2018. Unrelated to this, the company said it’s opening up editorial submissions for podcasters who want their podcast featured on its main app.
  • iPhone users complain of a bug that’s causing the Apple Music app to install itself to the iPhone’s dock, booting out their other apps from their spots. Some said the bug also caused Apple Music to set itself as the default for Siri requests as well. Apple said it’s aware of the issue, but didn’t offer a comment.
  • Google is shutting down the YouTube Go Android app for emerging markets, first launched in 2016. The app will close in August, with Google citing improvements to the main YouTube app as the reason.
  • Facebook is killing its audio streaming projects. The company said it would shut down its podcasts service, will discontinue its short-form Soundbites feature, and will integrate Live Audio Room into Facebook Live. Bloomberg had earlier reported the changes were coming as the company wanted to focus more heavily on its short-form video efforts.
  • Pinterest quietly launched a livestreaming app for video creators. The new Pinterest TV Studio app for iOS and Android will allow select creators to go live on Pinterest and use multiple devices in order to achieve different camera angles. The company didn’t announce the app’s debut — perhaps because it’s not broadly available to all creators at this time.

Gaming

Image Credits: Newzoo

  • Games market revenues will surpass $200 billion for the first time in 2022 as the U.S. overtakes China, per a new report from Newzoo. Games in 2022 will reach $203.1 billion via consumer spending (+5.4% year on year) — a new record. Mobile game revenues will pass the $100 billion mark for the first time in 2022, growing +5.1% year over year to $103.5 billion.
  • Netflix’s latest gaming addition is Relic Hunters: Rebels, a “looter shooter RPG,” and the first time the Relic Hunters series has appeared on mobile. The game, like Netflix’s others, has no ads or other monetization.
  • miHoYo’s Genshin Impact has now reached $3 billion in global revenue on mobile since its September 2020 launch, according to Sensor Tower. Following its worldwide release, the title took 171 days to generate its first $1 billion on mobile, and has been averaging revenue of around $1 billion every six months, making it one of the most successful titles of all time.
  • China’s gaming giant NetEase opened its first U.S.-based studio in Austin, Texas as China’s own gaming industry is slowing under new regulations. The game maker, whose portfolio includes mobile titles, is best known for the blockbuster Honor of Kings. The new Austin studio, Jackalope Games, is led by Jack Emmert, a veteran of massively multiplayer online role-playing games including City of Heroes, Neverwinter, Star Trek Online and DC Universe Online.
  • The Xbox mobile app rolled out a new Stories feature allowing players to share their favorite gaming moments, including game clips, screenshots and achievements with their friends and the Xbox community.

xbox stories

Image Credits: Microsoft

Health & Fitness

  • Dieting app Noom reportedly is cutting hundreds of its weight-loss coaches, after raising more than $500 million, per Axios.
  • TechCrunch’s Carly Page takes a look at whether or not period tracking apps are now more of a privacy and security risk as a result of the U.S. Supreme Court’s plan to overturn Roe v. Wade.

Government & Policy

  • Match Group’s latest Google Play Store complaint has triggered a Dutch antitrust probe by the Netherlands’ Authority for Consumers and Markets (ACM). The probe will examine to see if Google is abusing a dominant position, with regard to forcing businesses to use its own payments service for in-app purchases.
  • PayPal and others have made informal complaints about Apple’s NFC restrictions to the European Commission, spurring the EU’s recent antitrust complaint, Bloomberg reported. The new complaint focuses on the fact that Apple reserves the iPhone’s tap-to-pay NFC abilities for its own Apple Pay service.
  • The Netherlands Authority for Consumers & Markets (ACM) has concluded that the changes Apple made on March 30 related to the conditions for dating apps are still insufficient and a new penalty will be enforced.
  • Epic Games-owned app Bandcamp is fighting back against the Google Play policy changes that will require apps to use Google’s own payments systems — a change it says it will either have to pass on to customers or address by disabling sales of digital goods in-app.

Security & Privacy

  • Apple, Google and Microsoft announced plans to adopt features from the FIDO (“fast identity online”) Alliance, which is working on passwordless technology designed for websites and apps. Instead of using logins and passwords, websites could identify you with a fingerprint reader, face scanner or your phone.
  • Mozilla analyzed 32 mental health and prayer apps and found that 29 had poor privacy protections and security practices and were collecting large amounts of personal data. Those with the worst practices included Better Help, Youper, Woebot, Better Stop Suicide, Pray.com and Talkspace.
  • The WSJ reported that millions of Grindr users’ location data had been collected by a digital ad network and resold since at least 2017. Grindr said it has cut the data flow.

Funding and M&A

💰Paris-based Alan, an app offering personalized mental health programs, raised €183 million in Series E funding led by Canadian Teachers Venture Growth. The round values the business at €2.7 billion.

💰Canadian neobank app Neo Financial raised $145 million in Series C funding led by Valar Ventures after surpassing 1 million customers. The company offers a variety of products to its customers, including cash-back rewards, savings and investing, and is planning a mortgage offering for later this year.

🤝SoundCloud acquired an AI music company Musiio, whose tech aims to identify which songs could be hits. The company says it will use this to enhance SoundCloud’s own music discovery experience. Terms were not disclosed.

💰LottieFiles, a company that develops plugins for app developers to create, edit and test JSON-based Lottie animations, raised $37 million in Series B funding led by Square Peg Capital. LottieFiles is used by animation and motion designers at 150,000 companies, including Google, TikTok, Disney, Uber, Airbnb and Netflix.

💰Moysle, a company providing a mobile device management system for Apple devices, raised $196 million in Series B funding led by Insight Partners. The company now has 32,000 customers and says it’s seen “triple-digit” revenue growth since 2020.

🤝A mobile game called Wordle!, which benefitted from the web-based game of the same name that went viral (and is now run by The NYT), has come into the hands of AppLovin. Neither AppLovin nor developer Steven Cravotta were able to comment on the acquisition, but the game is now run by AppLovin’s studio Lion Studios Plus per its App Store listing. An Android version has also become available.

💰South Korea’s RECON Labs raised $4.4 million to help shoppers visualize products when shopping by creating 3D models in AR, which can then be used within their own platforms. The company plans to launch a 3D creator’s app next year.

💰Iceland-based Sidekick Health raised a $55 million Series B led by Novator Ventures for its gamified digital care platform for healthcare apps and services. The company aims to have more than 40 medical-grade digital therapeutics by 2026.

💰India’s Zepto, a 10-minute grocery delivery app, raised $200 million in Series D funding, valuing the business at $900 million. Existing backer Y Combinator Continuity led the round. The app currently operates across 11 cities in India and sees hundreds of thousands of orders daily.

 

Just over a year after launching a dedicated unit focused on digital markets inside the national competition watchdog, the UK government has put some meat on the bones of what this new Big Tech regulator will focus on — including confirming it will have the ability to levy fines of up to 10% of global annual turnover if platform giants fail to comply with tailored codes of conduct.

However the government still hasn’t confirmed exactly when it expects to legislate to empower the Digital Markets Unit (DMU) — saying only that it will introduce legislation to put it on a statutory footing “in due course.”

Responding late yesterday to a consultation on a new “pro-competition regime for digital markets” which it launched last year, the Department for Digital, Culture, Media and Sport (DCMS) said that incoming “fair play” rules for Big Tech — which the government wants to make digital markets more open and competitive — will make it easier for UK consumers to switch between Android and iOS; between social media accounts without losing their data; and to have more control over their data (such as by opting out of “personalized” advertising).

DCMS also wants the regime to ensure smartphone users to have more choice over which search engine and messaging apps they use — so the DMU looks set to target the pre-loading/bundling practices of giants like Apple and Google.

Boosting competition by setting out rules of the road for platform giants so they deal fairly with business customers is another core aim for the reform, with DCMS touting how it will support small businesses and startups.

“Tens of thousands of UK small and medium-size businesses will get a better deal from the big tech firms which they rely on to trade online. Tech firms could need to warn smaller firms about changes to their algorithms which drive traffic and revenues,” DCMS said in a press release, highlighting the example of changes to search engine algorithms that could steer traffic “away from certain sites and businesses which could have a negative effect on their revenue”. (Something plenty of Google competitors have complained about, over the years.)

Commenting in a statement, digital minister Chris Philp said:

“Technology has revolutionised the way thousands of UK firms do business – helping them reach new customers and putting a range of instant online services at people’s fingertips. But the dominance of a few tech giants is crowding out competition and stifling innovation.

“We want to level the playing field and we are arming this new tech regulator with a range of powers to generate lower prices, better choice and more control for consumers while backing content creators, innovators and publishers, including in our vital news industry.”

DCMS also said the incoming measures will “make sure news publishers are able to monetise their online news content and be paid fairly for it” — saying the DMU will be given the power to “step in to solve pricing disputes between news outlets and platforms”, which suggests the government is taking inspiration from Australia’s news bargaining code law targeted at Facebook and Google.

App developers will also be able to sell their apps on “fairer and more transparent terms”, per DCMS.

Here the government is likely drawing on a number of international moves to force Apple and Google to give up total control of their respective app store rules. (Albeit, the devil will be in the detail of the codes of conduct the DMU will be applying and we’ll have to wait an unknown amount of time to see those, as DCMS confirmed: “The government will define the digital activities and conduct requirements for firms in scope of the regime when it brings forward the legislation.”)

Per DCMS, only “a small number of firms with substantial and entrenched market power in the UK” will be designated with strategic market status and thus fall in scope of the regime. “This will make sure the regime holds the most-powerful businesses to account for their behaviour,” it suggested.

“An arsenal of robust sanctions will be available to the DMU to tackle non-compliance, including fines of up to 10% of annual global turnover and additional penalties of 5% of daily global turnover for each day an offence continues,” it added, further specifying that the unit will be able to “suspend, block and reverse behaviour by firms that breaches their conduct requirements, ordering them to take specific steps necessary to resolve a breach”.

“Senior managers will face civil penalties if their firms fail to engage properly with requests for information,” DCMS also noted.

Another trailed measure will be an obligation for the “handful” of tech giants who fall in scope of the regime (aka, those “with substantial and entrenched market power in the UK”) to report acquisitions to the CMA before they have closed, in order that the regulator can conduct an initial assessment of the merger “to determine whether further investigation is needed”.

Last fall, the CMA ordered Facebook/Meta to undo its (completed) acquisition of Giphy — relying on existing competition rules and powers for that intervention. But, in the future, the aim is for the DMU to proactively prevent a giant like Meta from buying a smaller rival in the first place if/when it identifies key competition concern attached to a proposed merger.

That provision looks set to put big limits on Big Tech’s ability to buy up and close down/otherwise assimilate/crush smaller rivals — so called ‘killer acquisitions’ — which are widely considered to be horrible for consumers and competition (even if certain venture capitalists may be happy to get an exit).

Commenting on DCMS’ DMU announcement in a statement, Andrea Coscelli, CEO of the CMA, said:

“The CMA welcomes these proposals and we’re pleased that the government has taken forward a number of our recommendations that will allow the DMU to oversee an effective and robust digital markets regime in the UK.

“The CMA stands ready to assist the government to ensure that legislation can be brought forward as quickly as possible, so consumers and businesses can benefit.”

UK lagging Europe

The DMU started work in shadow form in April last year, ahead of the anticipated “pro-competition” reform of oversight of tech giants which the government has said it will introduce to regulate the most powerful platforms, aka with so-called “strategic market status”, following similar moves elsewhere in Europe.

Germany is leading the pack here — having already (this year) designated Google and Facebook/Meta as subject to its reformed competition regime for the most powerful tech giants, after it updated the law at the start of 2021 — meaning its Federal Cartel Office is empowered to intervene more quickly to address problems linked to Big Tech’s market dominance.

Back in March, European Union lawmakers also agreed the final details of an ex ante regime proposed at the end of 2020, which will apply across the bloc — applying a set of up-front operational obligations on what the incoming pan-EU law refers to as Internet “gatekeepers”, with fines of up to 10% of global annual turnover for compliance breaches.

The EU ex ante regulation, called the Digital Markets Act (DMA), is due to come into force next Spring.

This means the UK is already lagging on addressing key structural competition problems with digital markets — problems which its own competition authority, the Competition and Markets Authority (CMA), has spent years looking into in some cases (such as the digital advertising market which it concluded is so broken it needs new powers to regulate adtech giants; it has also, more recently, set out preliminary concerns with Apple’s and Google’s duopoly of mobile app stores).

And while the DMU is, technically, up and running, it does not yet have powers to be able to rein in too-powerful tech giants — leaving UK consumers and businesses to continue sucking up unfair T&Cs.

It is also still not clear how much further the UK will fall behind.

In recent weeks, reports have suggested the government is getting cold feet over the plan to more proactively regulate tech giants. Although DCMS has claimed ministers remain committed to the reform — just without specifying when exactly the government will actually deliver it.

A reform that’s delayed can’t fix anything in the short or even medium term, given how much time is typically baked into regulatory regimes for procedural purposes etc. And with Big Tech market power so entrenched any delay looks costly for UK consumers and competition — who are already missing out.

A competition complaint against Google’s Android Play Store by Match Group, the company which owns Tinder and a number of other dating apps, has led to a preliminary investigation by the Netherlands’ Authority for Consumers and Markets (ACM) into whether the tech giant is abusing a dominant position, the regulator said today.

Match Group declined to comment on the substance of its complaint — but the ACM confirmed it has received “a request for enforcement regarding the Google Play Store”.

“Dating-app providers allegedly are no longer able to use a payment system other than Google’s payment system. In addition, dating apps claim they are no longer allowed to refer to other payment methods either,” the ACM also said in a short press statement.

“Dating-app provider [Match Group] has asked ACM to assess whether Google abuses its dominant position with these practices. ACM will therefore conduct a preliminary investigation in response to this request.”

The regulator declined to answer questions about the complaint.

In its own statement, a Google spokesperson told us:

“Like any business, Google charges for services but Match Group’s apps are eligible to pay just 15% on Google Play for digital subscriptions, which is the lowest rate among major app platforms. But even if they don’t want to comply with Google Play’s policies, Android still provides them multiple ways of distributing their apps to Android users, including through other Android app stores, directly to users via their website or as consumption-only apps.”

The ACM has been locked in a lengthy battle with iOS maker Apple over its app store payment rules as applied to local dating apps — which led it to order that Apple must allow dating apps to use alternative payment processing services, and issue a series of fines as the regulator judged Apple had failed to comply with the order.

The fines hit the maximum allowed for by an associated court order by the end of March — €50 million — when the ACM said it was considering a revised offer by Apple. However, according to Reuters, the regulator has decided Apple’s offer still does not comply with its order and it reports being told on Monday that the ACM is preparing a new order with new penalty payments.

The enforcement tug-of-war between the ACM and Apple attracted high level attention from the European Commission, with EVP Margrethe Vestager hitting out at Apple for deliberating choosing to pay a fine rather than comply in remarks back in February.

That’s notable because the Commission itself will in charge of enforcing a new ex ante competition regime against the most powerful tech giants which is due to come into force across the EU later this year.

The bloc’s lawmakers agreed the final details of the Digital Markets Act (DMA) in March — cementing a regime that will enforce a set of operational rules on so-called “Internet gatekeepers” which look set to shrink Apple’s and Google’s ability to micromanage how business users must operate on their app stores.

Under the incoming pan-EU regulation, fines can scale up to 10% of global annual turnover for gatekeeper non-compliance with the regulation’s up-front obligations. That means DMA enforcements are both likely to flow faster and be harder for Big Tech to ignore than traditional ‘ex post’ competition interventions.

Google and SAP have partnered around a number of different projects over the years and Google Cloud, just like its competitors, is a strategic cloud partner for RISE with SAP, the German enterprise software company’s program to help its customers move to the cloud. Today, the two companies announced a rather substantial expansion of their partnership that introduces a deep integration between SAP S/4HANA Cloud, SAP’s flagship enterprise resource planning (ERP) system, and Google Workspace. This new native integration will allow SAP users to access data from S/4HANA and work with it collaboratively in Google Docs and Sheets, all while seamlessly importing and exporting this data between the two systems.

Philipp Herzig, the SVP and Head of Intelligent Enterprise and Cross Architecture at SAP, told me that SAP’s customers asking for these features, especially as Google continues to attract more large enterprise customers. S/4HANA obviously holds a lot of valuable data and documents, so users were already exporting this data and working with it in other word processing and spreadsheet applications. But what’s maybe most important here is that this is a two-way integration that doesn’t just involve extracting data but also syncing it back into the ERP system as a new version so that the ERP system still functions as the system of record.

“The two-way integration is actually what many customers are asking for because, for sure, you can already extract the data today into whatever spreadsheet. But then, it is just a document that resides on a hard drive or Google Drive or wherever, right? That is okay for a small company, but big companies around the world need more structure for those documents. This is why the combination is so essential,” Herzig said.

He also noted that this is part of SAP’s work on improving its integration posture with third-party applications in general and that the company has built a standardized way to do so. Indeed, SAP is using its Business Technology Platform — the company’s own integration service — in the middle between S/4HANA and Google Workspace to power the connection between the two companies.

On the Google side, Workspace VP and GM Javier Soltero, who joined the company from Microsoft in 2019, noted that this integration also highlights that Workspace is ready for the enterprise. “For me, as somebody who has been now been steering this business for almost three years, seeing SAP’s support and conviction and working with us on this, as well as the reaction in the market and the requests that we’re getting for this, is evidence of the enterprise viability of Workspace, a topic, that for the longest time, even before I came here, was something that was harder to see,” he said.

Soltero also noted that Google has always tried to provide a surface for developers to build on top of the Workspace/G Suite ecosystem. “Seeing somebody like SAP take advantage of that is truly a big milestone for us and certainly evidence that we want to keep going through this,” he explained.

With SAP already supporting S/4HANA on Google Cloud’s infrastructure, it’s probably no surprise that the two companies also started to think about how they could build additional integrations that went beyond making use of Google Cloud’s core infrastructure services and that’s maybe also a good example why Google is keeping both its cloud infrastructure services and Workspace under the same corporate umbrella

“What this particular partnership represents for a business like Workspace is more than just this technical aspect of ‘hey, can you share data between a big important ERP system like S/4HANA and a product like Google Workspace,” he said. “Through the eyes of our existing and prospective customers, it represents the opportunity to truly realize something that’s greater than the sum of its parts and what I mean by that is that in giving a user of SAP the ability to access that data through a surface like Google Docs or Google Sheets, you are marrying an inherently collaborative hybrid work-friendly surface with this very important business dataset. And the resulting usage patterns, for us, especially, are bound to be very different and exciting, in part because of what it means when you have a real-time collaborative surface that is in constant synchronization with large scale enterprise data.”

While the two companies are currently piloting the integration with a select number of customers, the initial set of features will launch as a standard feature for S/4HANA Cloud later this year.

 

Facebook’s rebranded parent, Meta, has become the next tech giant to be confirmed as subject to a special competition abuse control regime in Germany, following a 2021 update to its digital competition rules that are focused on large digital companies which are considered to be of “paramount significance for competition across markets”, as the law puts it.

The designation, which stands for five years, empowers the regulator, the Federal Cartel Office (FCO), to take faster action to respond to competition concerns linked to Meta’s operations by imposing operational conditions intended to correct antitrust abuses.

The FCO said Meta has not sought to appeal the designation — which Meta confirmed. But the social media giant told us it disagrees with some of the findings, such as that it is dominant in the market for private social networks — pointing to what it claims is vigorous competition for consumers’ attention from other social platforms such as TikTok, YouTube, Snap and Twitter.

In a statement on the designation, a Meta spokesperson said:

“While we disagree with the reasoning leading to the FCO’s decision, our focus remains on delivering the best possible experience to our users in Germany in compliance with all laws and regulations. We look forward to continuing to work constructively with the FCO.”

Back in January the FCO designated Google as the first tech giant to meet the threshold for the ex ante competition regime to apply. Shortly afterwards, the tech giant offered concessions on how it operates its news licensing product, Google Showcase, in the country as an FCO probe of Showcase’s small print (ongoing since June 2021) continued.

The FCO also has a number of extant cases pertaining to Meta’s businesses — including a pioneering decision it took back in 2019 which sought to ban Facebook from combining user data across its suite of social platforms without people’s consent. Facebook challenged the order in court, arguing that the competition regulator does not have jurisdiction over privacy related issues. Whereas the FCO argues Facebook’s consentless combining of user data to build ‘superprofiles’ for ad targeting amounts to “exploitative abuse” — a practice dominant companies must not engage in under German law.

In March last year a German court referred a number of legal questions attached to this ‘superprofiling’ case to the European Union’s top court — which has still yet to issue a judgement. So it’s likely progress on that particular antitrust intervention will remain pending the CJEU’s input regardless of Meta now being subject to the updated German competition regime, given the intervention pre-dates the amended legislation.

Since 2020, the FCO has also been investigating Meta tying use of its VR platform, Oculus, to having a Facebook account as another potential anti-competition abuse.

The FCO suggests that the designation of Meta as a company of “paramount significance for competition across markets” means it will be able to conclude such procedures faster than it would otherwise in the future — which suggests that, as the tech giant seeks to execute an already very expensive ‘pivot to the metaverse’, Germany’s regulator will be watching for any unfair manoeuvring as Meta tries to pull off this metamorphosis (and probably watching Meta’s ‘metaverse’ rather more closely than the average consumer… ).

Commenting in a statement [which we’ve translated from German with machine translation], FCO president, Andreas Mundt, said: “Thanks to the digital ecosystem created by Meta with a very large number of users, the company is the central player in the field of social media. According to our investigations, Meta is also a company of outstanding cross-market importance in terms of antitrust law. We have now formally established its position after at times contentious proceedings. Our finding puts us in a position to take action against any violations of competition law much more efficiently than we were able to do with the instruments available to date. Meta has waived an appeal against our decision.”

Tougher rules for big tech

Germany is ahead of the curve on updating digital competition rules to respond to Big Tech’s market power, which has become a source of major concern for policymakers around the world.

The European Union is in the process of similarly updating pan-EU rules to introduce an ex ante regime called the Digital Markets Act (DMA) — and EU lawmakers arrived at a political agreement on the legislation in March.

Some procedural steps remain to pass the law so the DMA is not expected to begin applying until later this year.

In recent years, the UK has also said it will legislate for a “pro-competition” reform of competition rules targeting platforms with so-called “strategic market status”. However earlier this week the Financial Times reported that the government is getting cold feet on the plan — and won’t now legislate to empower a Digital Markets Unit that was set up last year in the current parliament.

Asked about this reported delay yesterday, the Department for Digital, Culture, Media and Sport told TechCrunch it “cannot comment on timelines for potential future legislation”. But a spokesperson reiterated: “Our pro-competition regime will change the conduct of the most powerful tech firms and protect the businesses and consumers who rely on them right across the economy,” adding: “We will be responding to our consultation shortly.”

Elsewhere, Australia passed a law last year that requires Google and Facebook to engage in negotiations to remunerate local news publishers for their content to take account of how journalism is shared on their platforms.

While an earlier (2019) update to EU copyright rules has also empowered France’s antitrust regulator to go after Google over fees due to news publishers for reuse of snippets of their content. And while Google appealed the $592M antitrust fine the French regulator hit it with last year, dubbing it “disproportionate”, the tech giant also offered a series of behavioral pledges on news payments to try to settle the costly issue.

Google has announced a package of additional controls for users of its productivity suite, Google Workspace (neé G Suite), in Europe — which it’s rolling out by the end of this year and next.

It says these extra control will enable organizations — both public and private sector — to “control, limit, and monitor transfers of data to and from the EU starting at the end of 2022”, announcing the incoming capabilities in a blog post.

The move looks intended to respond to heightened legal risk around exports of personal data — following a landmark EU legal ruling in July 2020 — which risks putting a dampener on regional use of US cloud services.

Earlier this year, a number of data protection agencies kicked off a coordinated enforcement action focused on public sector bodies’ use of cloud services — with the goal of investigating whether adequate data protection measures are applied, including when data is exported out of the bloc. And the European Data Protection Board (EDPB), which is steering the action, is due to publish a ‘state of play’ report before the end of 2022 — matching Google’s timeline for rolling out (some of) the new controls.

There have also, in recent months, been decisions by data protection agencies finding certain uses of tools like Google Analytics to be incompatible with the bloc’s privacy laws.

Google is referring to the incoming extra capabilities users in Europe will gain as “Sovereign Controls for Google Workspace” — in what also sounds like a conscious echo of a concept that EU lawmakers like to refer to as “digital sovereignty”.

EU lawmakers use that phrasing to talk about the region gaining autonomy over digital infrastructure — much of which is supplied by US tech firms. But, here, Google looks to be trying to spin an alternative version of ‘sovereignty’ by suggesting that technical measures and user configurations alone can provide enough autonomy for the EU, regardless of the tech itself still being supplied by a US giant, in the hopes that customers in the bloc keep buying its tools.

“European organizations are moving their operations and data to the cloud in increasing numbers to enable collaboration, drive business value, and transition to hybrid work. However, the cloud solutions that underpin these powerful capabilities must meet an organization’s critical requirements for security, privacy, and digital sovereignty. We often hear from European Union policymakers and business leaders that ensuring the sovereignty of their cloud data, through regionalization and additional controls over administrative access, is crucial in this evolving landscape,” it writes in the blog post.

“Today, we’re announcing Sovereign Controls for Google Workspace, which will provide digital sovereignty capabilities for organizations, both in the public and private sector, to control, limit, and monitor transfers of data to and from the EU starting at the end of 2022, with additional capabilities delivered throughout 2023. This commitment builds on our existing Client-side encryption,  Data regions, and Access Controls capabilities.”

What extra capabilities has Google announced now? In the near term, there looks to be an expansion of the client-side encryption which Google announced for Workspace last summer.

“Organizations can choose to use Client-side encryption pervasively across all their users, or create rules that apply to specific users, organizational units, or shared drives,” says Google. “Client-side encryption is now generally available for Google Drive, Docs, Sheets, and Slides, with plans to extend the functionality to Gmail, Google Calendar, and Meet by the end of 2022.”

Google is also announcing an expansion of data location controls — although its timeframe for this capability enhancement is slower, slated as coming “by the end of 2023”.

“Data regions already allow our customers to control the storage location of their covered data at-rest,” it writes, adding: “We will enhance this capability by the end of 2023 through expanded coverage of data storage and processing in-region along with an in-country copy.”

There will also be more access controls — to meet what Google couches as “evolving digital sovereignty standards”.

It says these incoming access controls will enable customers to:

  • Restrict and/or approve Google support access through Access Approvals;
  • Limit customer support to EU-based support staff through Access Management;
  • Ensure round-the-clock support from Google Engineering staff, when needed, with remote-in virtual desktop infrastructure;
  • Generate “comprehensive” log reports on data access and actions through the Access Transparency function.

But, again, these extra controls are not coming until the end of 2023.

Google is not starting from scratch here — having trailed incoming “data sovereignty controls” for EU users last fall, when it also talked about offering cloud services on “Europe’s terms“.

Although it will, of course, be for the bloc’s regulators to judge whether what it offers meets the required legal standard for the data flows in question to, er, legally flow.

Google generally argues that hybrid working complicates a legal requirement to “retain control of data wherever it resides” — before suggesting its approach, of “cloud-native architecture” (it specifies that Google Workspace “functions fully within a browser, without requiring caches or installed software on employee devices”) combined with a context-aware (“zero-trust”) approach to security which works by geofencing users and devices, plus controls for admins to let them set sharing boundaries and define rules that govern user communication, can help its customers navigate these choppy legal waters while still allowing the software’s core collaborative functions to work.

Use in the EU of cloud services from US-based companies has been shrouded in legal uncertainty for a number of years — most recently since July 2020 when the bloc’s top court struck down the flagship EU-US Privacy Shield data transfer agreement over a fatal clash between US surveillance law and EU privacy rights.

For the four years it stood, Privacy Shield simplified EU to US data exports with a self-certification system to authorize exports of Europeans’ personal data. But that regime ended with the July 2020 CJEU strike down.

And while the court did not outlaw data exports entirely, it did crank up the complexity of using other transfer mechanisms (such as standard contractual clauses) — making it clear that regional data protection agencies have a duty to step in and suspend data transfers if they believe European’s information is flowing to a destination where it’s at risk. (The EDPB subsequently put out guidance on so-called ‘supplementary measures’ that may help raise the standard of protection, such as robust encryption.)

The fact of the EU-US Privacy Shield being struck down by the CJEU made it plain that the US is a risky destination for EU data — hence US-based cloud services have been in the frame ever since.

And while the court ruling was not immediately followed by orders to cease data flows, EU agencies have been stepping up action and enforcements on the data transfers issue in recent months. The European Data Protection Supervisor gave the European Parliament a smackdown at the start of this year over a COVID-19 testing booking website (which used Google Analytics and included code for Stripe), for example.

Other subsequent decisions from data supervisors have similarly taken issue with use of certain Google’s tools.

The CJEU ruling followed the 2013 Snowden disclosures by NSA whistleblower Edward Snowden — who published details of US government mass surveillance programs tapping commercial digital services — revelations which also led to the prior EU-US data transfer deal, Safe Harbor, being struck down in 2015 by an earlier legal challenge.

So, while the EU and the US announced reaching a political agreement on a replacement for Privacy Shield this March, a third attempt to bridge the same legal schism will undoubtedly face a fresh court challenge. And the odds that Privacy Shield 2.0 survives the CJEU’s assessment look fairly slender, failing substantial reform of US surveillance law (which does not appear to be on the table).

All of which makes Google’s strategy — of offering its customers in the EU an expanding bundle of technical and organizational measures (such as client-side encryption, data localization and other bespoke controls like EU-based tech support) — look like a reasoned attempt to find a way to securing and future-proofing critical business data flows in the eyes of EU regulators, regardless of any political deal on paper. (Although its blog post also notes that Google Cloud will be “making the protections” offered by the new EU data transfer framework available “once it is implemented” (an event still likely multiple months away).)

“We remain committed to equipping our customers in Europe and across the globe with powerful technical solutions that help them adapt to, and stay on top of, a rapidly evolving regulatory landscape. We’ve designed and built Google Workspace to operate on a secure foundation, providing capabilities to keep our users safe, their data secure, and their information private. Digital sovereignty is core to our ongoing mission in Europe and elsewhere, and a guiding principle that customers can rely on now and into the future,” Google adds.

Discussing the tech giant’s announcement, Dr Lukasz Olejnik, an independent cybersecurity researcher and consultant based in Europe, describes the latest development as “an interesting evolution of a product and service” which he assesses as almost certainly motivated by EU law and policy.

“It appears to support directly the recommendations of EDPB, which also reflect my previous analysis. Specifically the support for using specific technical and organisational setup,” he suggests. “As for the technical side, the processing is to be supported by client-side encryption, in ways that keys never leave the premises of an EU-located company. Client-side encryption capability is already offered by Workspace. Today, it could still be seen as a bit cumbersome — and it is unclear if the new controls would make anything easier. Let’s hope so. Still, it appears that what’s new is this all-in-one control.”

“The expansion of in-country data centres is an expected development but an additional one that would support the ECJ judgment,” he also tells us, adding: “What’s still lacking is an easy-to-use and usable management of access to data. Like the data in Google Docs. For example, today it is far from simple to easily list all the shared documents, to remove some sharing configuration. To expect people to do this file-after-file, for individual files, is far from usable at a scale. This should be simplified, not on an individual file basis. It seems that — maybe! — the new Access Control capability may offer help here? How it works in practice remains to be seen.”

Mozilla launched version 100 of its Firefox browser today, but more so than a day for celebration, it feels like a day for nostalgia.

That’s a nostalgia for a time when Firefox was truly revolutionary after it broke out of the Mozilla Application Suite back in 2002 and quickly threatened the hegemony of the utterly dismal Internet Explorer. But also a nostalgia for the open web, which Mozilla was able to champion when Firefox still had a dominant market share. It’s much easier to lead when your product has 30% market share and growing (like Firefox had around 2010) and your biggest competitor is declining quickly, but it’s hard to make your voice heard when you are under 4%.

Today’s Mozilla, after many lean years, seems to be on a path to a better financial future, but its dependence on Google makes for an uneasy alliance as Mozilla tries to champion online privacy in a world dominated by the giant advertising company it utterly depends on.

Firefox, too, is now a perfectly competent browser — but so is every other browser. It’s no secret that over the years, Mozilla got distracted. There were efforts to build a Firefox OS for affordable smartphones (which still lives as a fork under the KaiOS banner), VR browsers, arguments over whether there should be sponsored tiles on Firefox’s new tab page, a WebRTC video chat service and much more.

Today, with Firefox Relay and the Mozilla VPN, it seems the organization has refocused a bit. Its focus on privacy resonates more today than it ever did — but for now, that hasn’t changed the browser’s fortune. Even today, for most users, privacy is a nice to have but not a reason to switch browsers, especially when there are plenty of extensions that can essentially do the same (though Firefox’s Multi-Account Containers are a game changer and should be available in every browser, as far as I’m concerned).

Yet with all of the resources being poured into Chromium, it’s hard to see how Firefox and its Gecko engine will remain competitive in the long run. Browsers today are incredibly complex pieces of software. With Servo, Mozilla started a project to build a new engine from scratch. That was in 2012. Ten years later, we’re only seeing pieces of that in Firefox — and when Mozilla laid off many of its employees in 2020, that included the Servo team.

There also hasn’t been a lot of innovation around Firefox lately, all while Chromium-based browsers are finding their niches, with Vivaldi, for example, tapping into the market for advanced users who want endless customizability, Brave going for the privacy-conscious crypto fans and Microsoft keeping the Windows faithful happy after finally ditching Internet Explorer (despite occasional missteps into bloatware).

It doesn’t help that Mozilla never made it easy to build new user experiences around its browser engine while Chromium made it a core feature. Users may not care about the engine underneath their browsers, but developers who want to experiment with new browser paradigms will always opt for Chromium.

The web is better off today because of what Mozilla built with Firefox. I hope we’ll see version 200 eight years from now.

Lumos, a startup that wants to provide an end-to-end solution for enterprises to manage all of the SaaS apps their employees use, is coming out of stealth today. The company plans to take on the SaaS management market by combining security features like role-based access control that IT departments need with the self-service capabilities that employees want and the spending reports (and ability to shut down unused accounts) that the finance department needs.

Lumos also today announced that it has raised a total of over $30 million from the likes of Andreesen Horowitz, Neo, Lachy Groom, Google Cloud CISO Phil Venables, OpenAI CTO Greg Brockman and others. 

At its core, Lumos replaces IT tickets with a self-service portal for employees. The team argues that as enterprises increasingly rely on SaaS applications, it’s becoming increasingly difficult for businesses to manage them. Often, this means an added bureaucratic layer of IT tickets to gain access to a service and additional costs for SaaS licenses for users who may not even be using a service or who may have left the company — all while it’s almost impossible for IT and security teams to keep up with the inevitable rise of shadow IT as employees try to route around these systems.

The promise of Lumos is that it can provide access controls but also provide a self-service portal to employees and automatically recognize when a user stops using a SaaS tool, for example, and then de-provision those accounts to save on licensing cost.

Image Credits: Lumos

“As the world has shifted from ‘bring your own device’ to ‘bring your own app’ and now ‘bring your own office,’ the challenge of shadow IT has only continued to compound. We’re very excited to partner with the Lumos team as they build the tool that can bring light to this darkness,” said Peter Levine, a general partner at Andreesen Horowitz.

As Lumos co-founder Andrej Safundzic told me, the idea for Lumos was born out of a privacy-and ethics-focused class he and his co-founder Leo Mehr took at Stanford (with Alan Flores-Lopez rounding out the co-founding team shortly after). That class, he said, made him realize how consumers may have password managers to secure their accounts but no easy way to manage the user accounts they likely have across hundreds of services.

“Then I looked at my phone — and my phone was beautiful, right? I have everything in my home screen,” Safundzic said. “I can delete what I want. I can go to settings and disable location sharing for Facebook. The App Store on Apple made this such a beautiful integrated platform. But if you look at the web, you have 100 websites, Figma, Airtable, Smartsheet — everything. So we just said: hey, let’s create that app store for the web.”

Image Credits: Lumos

That’s still the long-term goal today, but to get started, the team decided to focus on companies because, Safundzic frankly admitted, that’s an easier business model.

Since most services have open APIs to allow Lumos to create and delete accounts, the team didn’t even need to build a partnership team to support get started. The service integrates with existing IT systems, so tickets are still created to ensure everything is logged, but Lumos then orchestrates everything in the background. It supports services like Okta, OneLogin, Google and Azure AD for identify and access management and easy account provisioning for services like Zoom, Salesforce, AWS and Datadog. Like any modern service that focuses on workflows, it also integrates with Slack (with Teams support coming soon).

With Torii, BetterCloud, Intello and others, there are obviously quite a few SaaS management services on the market already. This is, after all, a massive problem for businesses. But the Lumos team argues that these are not end-to-end solutions and don’t offer all of the compliance, self-service and automation features its tool offers.

It’s worth noting that Safundzic has a bit of previous startup experience. Before co-founding Lumos, Safundzic built Tech4Germany, a GovTech startup that was acquired by the German Federal Chancellery.

Today, Lumos already has over 30 employees. Current users include the likes of BuzzFeed, Dialpad, Mixpanel, Skydio and Vox Media.