US seeks data on how Facebook, Twitter, TikTok and others use personal data

WASHINGTON - The Federal Trade Commission is seeking information from Facebook, Twitter and other social media and video streaming companies about how they use the personal information that they collect on their users, the U.S. agency said on Monday.

In addition to Facebook Inc and Twitter Inc, the orders requesting data were sent to Facebook subsidiary WhatsApp, Amazon.com Inc, China's ByteDance unit TikTok, Discord Inc, Reddit Inc, Snap Inc, and Google subsidiary YouTube LLC.

The FTC is seeking to learn how the companies collect data on users, how they decide which advertisements to show and how algorithms are used, among other information, the agency said in a statement. It is also seeking information about how the companies' practices affect children and teenagers.

The companies have 45 days to respond to the orders, which are usually used to generate policy or recommend legislation.

In a joint statement, two Democratic members of the commission, Rohit Chopra and Rebecca Slaughter, and one Republican, Christine Wilson, noted their impetus for the order.

"Never before has there been an industry capable of surveilling and monetizing so much of our personal lives," they wrote. "Social media and video streaming companies now follow users everywhere through apps on their always-present mobile devices. This constant access allows these firms to monitor where users go, the people with whom they interact, and what they are doing. ... Too much about the industry remains dangerously opaque.

Discord said it looked forward to answering the FTC's questions. "We make no money from advertising, selling user data to advertisers, or sharing users' personal information with others. Instead, the company generates its revenue directly from users through a paid subscription service," a spokesperson said in an email statement.

None of the other companies immediately responded to a request for comment. 

(Reporting by Diane Bartz Editing by Sonya Hepinstall and Richard Chang)

-reuters-

Google to pay up to $200 million to FTC on YouTube probe - source

WASHINGTON - Alphabet Inc's Google will spend up to $200 million to settle a Federal Trade Commission investigation into YouTube's alleged violation of a children's privacy law, a person briefed on the matter told Reuters.

Politico reported the settlement is expected to be between $150 million and $200 million. The settlement is set to be announced next week and will be the largest ever fine imposed for violating the Children’s Online Privacy Protection Rule by collecting personal information from kids without parental consent.

Google declined to comment.

The FTC voted 3-2 to approve the settlement and sent it to the justice department as part of the review process, Reuters confirmed, citing a person familiar with the matter. The Washington Post reported the settlement's approval in July but did not detail the amount of the civil penalty.(https://politi.co/2ZtIM5G)

The settlement will far surpass the previous record set in February, a $5.7 million civil penalty imposed on Musical.ly, which did not ask for users' ages for three years. The online library for Musical.ly – now known as TikTok – features music popular with kids.

Sen. Ed Markey, a Democrat, said Friday "the FTC appears to have let YouTube off the hook with a nominal fine for violating users’ privacy online. And in this case, Google’s intrusions on kids' personal info are at issue. We must come down hard on companies that infringe on children’s privacy."

On Thursday, Google launched YouTubeKids. The company said it built the site "to create a safer environment for kids to explore their interests and curiosity, while giving parents the tools to customize the experience for their kids."

Parents can select from three different age groups to choose age-appropriate content - preschool, ages 5-7 and 8-12. Katharina Kopp, deputy director of the Center for Digital Democracy, said Friday "a settlement amount of $150-200 million would be woefully low, considering the egregious nature of the violation, how much Google profited from violating the law, and given Google’s size and revenue."

She added the fine "would effectively reward Google for engaging in massive and illegal data collection."

In April 2018, the center, joined by other groups, filed an FTC complaint alleging YouTube profited from kids "without first providing direct notice to parents and obtaining their consent as required by law. Google uses this information to target advertisements to children across the internet and across devices." 

source: news.abs-cbn.com

Facebook to pay record $5 billion US fine over privacy violations

WASHINGTON - Facebook Inc will pay a record-breaking $5 billion fine to resolve a government probe into its privacy practices and the social media giant will restructure its approach to privacy, the US Federal Trade Commission said on Wednesday.

The FTC voted 3-2 along party lines to adopt the settlement, which requires court approval, even as Democrats said the settlement did not go far enough or require a large enough fine.

"Despite repeated promises to its billions of users worldwide that they could control how personal information is shared Facebook undermined consumers' choices," said FTC Chairman Joe Simons, a Republican, in a statement.

But Democratic FTC Commissioner Rohit Chopra said the penalty provided "blanket immunity" for Facebook executives "and no real restraints on Facebook's business model" and does "not fix the core problems that led to these violations."

Facebook declined to comment ahead of the settlement's public release.

The FTC said that Facebook's data policy was deceptive to "tens of millions" of people who used Facebook's facial recognition tool and also violated its rules against deceptive practices when it did not disclose phone numbers collected to enable a security feature would be used for advertising.

Under the settlement, Facebook's board will create an independent privacy committee that removes "unfettered control by Facebook CEO Mark Zuckerberg over decisions affecting user privacy."
Facebook also agreed to exercise greater oversight over third-party apps.

Chopra and Democratic FTC Commissioner Rebecca Slaughter, who opposed the settlement, said the $5 billion penalty may be less than Facebook's gains from violating users' privacy.

"Until we address Facebook's core financial incentives for risking our personal privacy and national security, we will not be able to prevent these problems from happening again," Chopra said.

The FTC Republican majority argued the settlement "significantly diminishes Mr. Zuckerberg's power -- something no government agency, anywhere in the world, has thus far accomplished."

The Republican commissioners led by Simons said if the FTC had gone to court "it is highly unlikely that any judge would have imposed a civil penalty even remotely close to this one."

They called the settlement -- in light of what the FTC might have been able to win in a court fight -- "a complete home run."

The Republican majority noted that Zuckerberg and other company executives will have to sign quarterly certifications attesting to the company's privacy practices.

The FTC said Zuckerberg or others filing a false certification could face civil and criminal penalties.

Facebook also is barred from asking for email passwords to other services when consumers sign up.

Facebook is barred from using telephone numbers obtained in a security feature, like two-factor authentication, for advertising and must get user consent if it plans to use data from facial recognition technology.

FTC DECIDED TO SETTLE PROBE

The settlement stems from the company's alleged violations of a 2012 FTC settlement order over privacy issues.

Slaughter said the FTC should have taken Facebook and Zuckerberg to court.

Slaughter also criticized the FTC's decision to grant Facebook and its executives a release from liability for any claims that prior to June 12, 2019 it violated the FTC 2012 settlement as "far too broad" and said the FTC failed "to impose any substantive restrictions on Facebook's collection and use of data from or about users."

Chopra added that by "settling the commission -- and the public -- may never find out what Facebook knows... It is difficult to conclude that the commission got the better end of the bargain."

The FTC has been investigating allegations Facebook inappropriately shared information belonging to 87 million users with the now-defunct British political consulting firm Cambridge Analytica.

The FTC also said Wednesday that Cambridge's former CEO Alexander Nix and former app developer Aleksandr Kogan, who worked with the company, had agreed to a settlement with the FTC that will restrict how they conduct business in the future.

The settlement comes a day after the US Justice Department said on Tuesday it was opening a broad investigation of major digital technology firms into whether they engage in anti-competitive practices, the strongest sign the Trump administration is stepping up its scrutiny of Big Tech.

The review will look into "whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers," the Justice Department said in a statement.

The Justice Department did not identify specific companies but said the review would consider concerns raised about "search, social media, and some retail services online" -- an apparent reference to Alphabet Inc, Amazon.com Inc and Facebook Inc, and potentially Apple Inc . 

(Reporting by David Shepardson; Editing by Lisa Shumaker)

source: news.abs-cbn.com

$5-billion US fine set for Facebook on privacy probe: report

WASHINGTON, United States - US regulators have approved a $5-billion penalty to be levied on Facebook to settle a probe into the social network's privacy and data protection lapses, the Wall Street Journal reported Friday.

The newspaper said the Federal Trade Commission approved the settlement in a 3-2 vote, with the two Democratic members of the consumer protection agency dissenting.

According to the report, the deal, which would be the largest penalty imposed over privacy violations, still needs approval from the justice department before it is finalized.

Facebook did not immediately respond to an AFP query on the agreement.

The settlement would be in line with Facebook's estimate earlier this year when it said it expected to pay $3 billion to $5 billion for legal settlements on "user data practices."

The FTC announced last year it reopened its investigation into a 2011 privacy settlement with Facebook after revelations that personal data on tens of millions of users was hijacked by the political consultancy Cambridge Analytica, working on the Donald Trump campaign in 2016.

Facebook has also faced questions about whether it improperly shared user data with business partners in violation of the earlier settlement.

The leading social network with more than 2 billion users worldwide has also been facing inquiries on privacy from authorities in US states and regulators around the world.

Some Facebook critics have argued the company should face tougher sanctions including monitoring of its data practices, or that chief executive Mark Zuckerberg should be personally liable for penalties.

Charlotte Slaiman of the consumer group Public Knowledge said it was not immediately clear if the settlement would require changes to Facebook's business practices, but suggested that the partisan split on the vote was a bad omen.

"I'm hopeful that additional conditions placed on Facebook's business practices will be forthcoming," Slaiman said in a statement.

"Those conditions should protect not just user privacy, but also the users' opportunity to easily leave Facebook for a competitor if they choose."

source: news.abs-cbn.com

US moving toward major antitrust probe of tech giants

WASHINGTON -- The US government is gearing up to investigate whether Amazon, Apple, Facebook and Google misuse their massive market power, sources told Reuters on Monday, setting up what could be an unprecedented, wide-ranging probe of some of the world's largest companies.

The Federal Trade Commission and the Department of Justice, which enforce antitrust laws in the United States, have divided oversight over the 4 companies, two sources said, with Amazon and Facebook under the watch of the FTC, and Apple and Google under the Justice Department.

With jurisdiction established, the next step is for the 2 federal agencies to decide if they want to open formal investigations. Results are not likely to be quick. A previous FTC probe of Google took more than 2 years.

Technology companies face a backlash in the United States and across the world, fueled by concerns among competitors, lawmakers and consumer groups that the firms have too much power and are harming users and business rivals.

Shares of Facebook Inc fell 7.5 percent on Monday while Google's owner Alphabet Inc shed more than 6 percent. Amazon.com Inc shares fell 4.6 percent and Apple Inc dipped 1 percent.

The Justice Department and FTC generally do not discuss investigations.

US President Donald Trump has called for closer scrutiny of social media companies and Google, accusing them of suppressing conservative voices online, without presenting any evidence.

He has repeatedly criticized Amazon for taking advantage of the US Postal Service, also without evidence. Trump has frequently taken aim at Amazon's Chief Executive Jeff Bezos, who privately owns the Washington Post, a newspaper which often criticizes Trump.

LAWMAKERS WEIGH IN

Leading lawmakers on both sides of the aisle welcomed potential investigations of big tech firms.

Senate Judiciary Committee Chairman Lindsey Graham, a Republican, told Reuters that the business model of companies like Google and Facebook needs to be scrutinized. "It’s got so much power, and so unregulated," he said. Another Republican, Senator Marsha Blackburn, said the panel would do what she called a "deeper dive" into big tech companies.

Democratic Senator Richard Blumenthal, who said on Monday that US enforcers have to do more than wring their hands about the companies' clout, also weighed in.

"Their predatory power grabs demand strict & stiff investigation & antitrust action," the Connecticut senator wrote on Twitter.

Separately, the House of Representatives Judiciary Committee opened its own investigation into competition in digital markets, with both Republicans and Democrats expressing concern about the power exercised by tech giants.

News broke on Friday that the Justice Department was laying the groundwork to investigate Google to determine whether the world's biggest online advertising platform was using its size to squeeze out smaller competitors, violating laws designed to ensure fair competition. The company declined comment on Monday.

The Washington Post reported on Saturday that Amazon would come under the remit of the FTC in any probe. Amazon declined comment on Monday.

People briefed on the matter say neither the Justice Department nor the FTC have contacted Google or Amazon about any probes, and that company executives are unaware of what issues regulators are reviewing.

Apple and Facebook did not immediately reply to a request for comment on Monday.

REGULATORY SCRUTINY

While the four technology companies, all worth hundreds of billions of dollars, have drawn scrutiny from regulators and lawmakers around the world, it was not clear what the US Justice Department or FTC planned to focus on.

Amazon, the world's biggest online retailer, has been criticized for holding sway over third-party sellers on its website, who must pay for advertising to compete against first-party and private label sales by Amazon itself. Lawmakers have also argued that Amazon's low prices have hurt brick-and-mortar retailers, many of whom have closed because they could not compete.

Apple is the subject of a European Union investigation into a complaint made by streaming music provider Spotify Technology SA that Apple abuses its power over app downloads. In 2014, the iPhone maker settled a Justice Department lawsuit alleging it conspired with publishers to raise the price of e-books.

The FTC has already been investigating Facebook's sharing of data belonging to 87 million of its users with the now-defunct British political consulting firm Cambridge Analytica. Facebook said in April that it expected to be fined up to $5 billion by the regulator.

Facebook, which owns one-time rivals Instagram and WhatsApp and has more than 1.5 billion daily users, has a huge influence in many countries and has been criticized for allowing misleading posts and so-called 'fake news' on its service.

Google has faced accusations that its web search service, which has become so dominant that it is now a verb, leads consumers to its own products at the cost of competitors.

The FTC settled an investigation of Google in 2013 with a reprimand. The company has been fined multiple times by the European Union's competition regulator, most recently in March for 1.5 billion euro ($1.7 billion) in a case focused on illegal practices in search advertising brokering from 2006 to 2016.

Legal experts have said US regulators are unlikely to attempt to break up the technology giants.

It is rare to break up a company but not unheard of, with Standard Oil and AT&T being 2 of the biggest examples. US antitrust probes more often result in an agreement to change certain business practices.

source: news.abs-cbn.com

Google to Change Terms to Use Your Identity in Ads

Google wants your permission to use your name, photo and product reviews in ads that it sells to businesses. The Internet search giant is changing its terms of service starting Nov. 11.

Your reviews of restaurants, shops and products, as well as songs and other content bought on the Google Play store could show up in ads that are displayed to your friends, connections and the broader public when they search on Google. The company calls that feature "shared endorsements."

Google (GOOG) laid out an example of how this could happen: "Katya Klinova," her face and five-star review appear underneath an ad for Summertime Spas.

You can opt out of sharing your reviews.

Google said Friday that the name and photo you use in its social network, Google Plus, is the one that would appear in the ad. Google has said the social network has 390 million active users per month.

"We want to give you -- and your friends and connections -- the most useful information. Recommendations from people you know can really help," the company said in an explanation of the changes.



The Mountain View, Calif., company already had a similar setting for its "+1" button, which it introduced in 2011. It had experimented temporarily with putting "+1" endorsements with users' identities in ads, but it hasn't had them up recently. The company said Friday that the choice a user made about allowing for "+1" endorsements would be the default setting for shared endorsements.

Also, if a user chooses to limit an endorsement to certain circles of friends or contacts, that restriction will be respected in any ads that use the endorsement.

Google's move follows a similar proposal by Facebook (FB). The social network in August said it would show users' faces and names in ads about products they clicked to "like." That proposal was criticized by privacy groups. They asked the Federal Trade Commission to look into the matter, which the agency said it did as part of routine monitoring of privacy practices.

source: dailyfinance.com