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Daily Crunch: Facebook Dating comes to Europe

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Facebook’s dating feature expands after a regulatory delay, we review the new Amazon Echo and President Donald Trump has an on-the-nose Twitter password. This is your Daily Crunch for October 22, 2020.

The big story: Facebook Dating comes to Europe

Back in February, Facebook had to call off the European launch date of its dating service after failing to provide the Irish Data Protection Commission with enough advanced notice of the launch. Now it seems the regulator has given Facebook the go-ahead.

Facebook Dating (which launched in the U.S. last year) allows users to create a separate dating profile, identify secret chats and go on video dates.

As for any privacy and regulatory concerns, the commission told us, “Facebook has provided detailed clarifications on the processing of personal data in the context of the Dating feature … We will continue to monitor the product as it launches across the EU this week.”

The tech giants

Amazon Echo review: Well-rounded sound — This year’s redesign centers on another audio upgrade.

Facebook adds hosting, shopping features and pricing tiers to WhatsApp Business — Facebook is launching a way to shop for and pay for goods and services in WhatsApp chats, and it said it will finally start to charge companies using WhatsApp for Business.

Spotify takes on radio with its own daily morning show — The new program will combine news, pop culture, entertainment and music personalized to the listener.

Startups, funding and venture capital

Chinese live tutoring app Yuanfudao is now worth $15.5 billion — The homework tutoring app founded in 2012 has surpassed Byju’s as the most valuable edtech company in the world.

E-bike subscription service Dance closes $17.7M Series A, led by HV Holtzbrinck Ventures — The founders of SoundCloud launched their e-bike service three months ago.

Freelancer banking startup Lili raises $15M — It’s only been a few months since Lili announced its $10 million seed round, and it’s already raised more funding.

Advice and analysis from Extra Crunch

How unicorns helped venture capital get later, and bigger — Q3 2020 was a standout period for how high late-stage money stacked up compared to cash available to younger startups.

Ten Zurich-area investors on Switzerland’s 2020 startup outlook — According to official estimates, the number of new Swiss startups has skyrocketed by 700% since 1996.

Four quick bites and obituaries on Quibi (RIP 2020-2020) — What we can learn from Quibi’s amazing, instantaneous, billions-of-dollars failure.

(Reminder: Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

President Trump’s Twitter accessed by security expert who guessed password “maga2020!” — After logging into President Trump’s account, the researcher said he alerted Homeland Security and the password was changed.

For the theremin’s 100th anniversary, Moog unveils the gorgeous Claravox Centennial — With a walnut cabinet, brass antennas and a plethora of wonderful knobs and dials, the Claravox looks like it emerged from a prewar recording studio.

Announcing the Agenda for TC Sessions: Space 2020 — Our first-ever dedicated space event is happening on December 16 and 17.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

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TikTok hearing obscures wider issue of Americans’ online privacy

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TikTok hearing obscures wider issue of Americans' online privacy

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For a brief moment in a five-hour House hearing on Thursday, TikTok’s CEO Shou Zi Chew let his frustration show. Asked if TikTok was prepared to split off from its Chinese parent company if ordered to do so by the U.S. government, to safeguard Americans’ online data, Chew went on offense.

“I don’t think ownership is the issue here. With a lot of respect: American social companies don’t have a great record with privacy and data security. I mean, look at Facebook and Cambridge Analytica,” Chew said, referring to the 2018 scandal in which Facebook users’ data was found to have been secretly harvested years earlier by a British political consulting firm.

He’s not wrong. At a hearing in which TikTok was often portrayed as a singular, untenable threat to Americans’ online privacy, it would have been easy to forget that the country’s online privacy problems run far deeper than any single app. And the people most responsible for failing to safeguard Americans’ data, arguably, are American lawmakers.

U.S. government issues historic $5 billion fine against Facebook for repeated privacy violations

The bipartisan uproar over TikTok’s Chinese ownership stems from the concern that China’s laws could allow its authoritarian government to demand or clandestinely gain access to sensitive user data, or tweak its algorithms to distort the information its young users see. The concerns are genuine. And yet the United States has failed to bequeath Americans most of the rights it now accuses TikTok of threatening.

While the European Union has far-reaching privacy laws, Congress has not agreed on national privacy legislation, leaving Americans’ online data rights up to a patchwork of state and federal laws. In the meantime, reams of data on Americans’ shopping habits, browsing history and real-time location, collected by websites and mobile apps, is bought and sold on the open market in a multi-hundred-billion-dollar industry. If the Chinese Communist Party wanted that data, it could get huge volumes of it without ever tapping TikTok. (In fact, TikTok says it has stopped tracking U.S. users’ precise location, putting it ahead of many American apps on at least one important privacy front.)

That point was not entirely lost on the members of the House Energy and Commerce Committee, which convened Thursday’s hearing. Last year, their committee became the first to advance a comprehensive data privacy bill, hashing out a hard-won compromise. But it stalled amid qualms from House and Senate leaders.

Likewise, worries about TikTok’s addictive algorithms, its effects on teens’ mental health, and its hosting of propaganda and extreme content are common to its American rivals, including Google’s YouTube and Meta’s Instagram. Congress has not meaningfully addressed those, either.

And if Chinese ownership is the issue, TikTok has plenty of company there, as well: A glance at Apple’s iOS App Store rankings earlier this week showed that four of the top five apps were Chinese-owned: TikTok, its ByteDance sibling CapCut, and the online shopping apps Shein and Temu.

The enthusiasm for cracking down on TikTok in particular is understandable. It’s huge, it’s fast-growing, and railing against it allows lawmakers to position themselves simultaneously as champions of American children and tough on China. Banning it would seem to offer a quick fix to the problems lawmakers spent five hours on Thursday lamenting.

And yet, without an overhaul of online privacy laws, it ignores that those problems exist on all the other apps that haven’t been banned.

“In most ways, they’re like most of the Big Tech companies,” Rep. Jan Schakowsky (D-Ill.) said of TikTok after the hearing. “They can use Americans’ data any way they want.” She and several other committee members said they’d prefer to address TikTok as part a broader privacy bill, rather than a one-off ban.

But the compromises required to pass big legislation can be politically costly, while railing against TikTok costs nothing. If Chew can take any consolation from Thursday’s hearing, it’s that congressional browbeating of tech companies are far more common than congressional action against them.

For an example, he has only to look at the one he raised in that moment of frustration: For all the hearings, all the grilling of Mark Zuckerberg over Cambridge Analytica, Russian election interference and more, Facebook is still here — and now Congress has moved on to a new scapegoat.

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Celebrity doctor linked to Facebook rapist Thabo Bester leaves rented Hyde Park mansion

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Celebrity doctor linked to Facebook rapist Thabo Bester leaves rented Hyde Park mansion

Johannesburg – Dr Nandipha Magudumana, the celebrity doctor linked with Facebook rapist Thabo Bester, has allegedly abandoned her rented Hyde Park …

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Watching Meta Over One Year: This Was The Headline On Meta Employees One Year Ago; What Changed? – Meta Platforms (NASDAQ:META)

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Watching Meta Over One Year: This Was The Headline On Meta Employees One Year Ago; What Changed? - Meta Platforms (NASDAQ:META)

Exactly one year ago, on March 21, 2022, this was the headline: ‘Facebook Parent Meta Employees Seek Greener Pastures Post Stock Meltdown.’

Then, reports claimed Meta Platforms, Inc META employees were burdened with underwater stock options and looked to exit following plunging stock prices.

As of March 2022, Meta employees with $100,000 worth of restricted stock units around its September stock peak found them worth ~$57,000.

A series of internal leaks put massive political pressure on the company fueled by the multibillion-dollar sting of privacy changes from Apple Inc AAPL and Alphabet Inc GOOG GOOGL Google.

Opportunists from other companies like Microsoft Corp MSFT, whose price was down 10.3% as of March 2022, could theoretically “buy the dip” by taking a job at a beaten-down company like Meta and getting more stock options at a lower price.

However, by November, things changed, and the falling stock price signaled trouble. Finally, in November 2022, Meta fired 11,000 people, or 13% of its staff, scaled back budgets, and shrunk its real estate footprint in the face of macro uncertainties.

Again on March 14, 2023, Meta disclosed plans to downsize team strength by around 10,000 people and to close about 5,000 additional open roles to make it a better technology company and improve its financial performance amid macro uncertainties.

CEO Mark Zuckerberg mentioned that his restructuring plans focused on flattening its organizational structure, dumping lower-priority projects, and reducing hiring rates.

Meta highlighted investing in building AI tools as ChatGPT adoption gains momentum worldwide. It emphasized how the last downsizing improved efficiency and reduced costs by cutting out duplicative work and helping execute its highest priorities faster.

As of March 2023, Meta reportedly slashed the price of Quest Pro to fend off competition from Apple’s upcoming MR headset launch. It also remained rattled by the success of ByteDance Ltd TikTok and had forgone projects to win back lost users to the popular Chinese social media platform.

Major tech players saw huge losses in 2022, weighed by higher interest rates, high inflation, and uncertain economic conditions. Meta lost two-thirds of its value. Amazon.Com Inc AMZN also lost half its value.

Interestingly, Meta shares gained over 64% YTD, beating the broader index returns of 14.96%.

Price Action: META shares closed higher by 2.24% at $204.28 on Thursday.

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