Facebook Strikes Deal to Restore News Sharing in Australia
We’re not sure quite what Facebook’s board was thinking: they may have won the battle, but lost the war. Rep. David Cicilline, a Rhode Island Democrat who heads a House subcommittee that has urged antitrust action against the company, wrote on Twitter: “If it is not already clear, Facebook is not compatible with democracy […] Threatening to bring an entire country to its knees to agree to Facebook’s terms is the ultimate admission of monopoly power.” Google, with its pre-emptive complaince, was left looking like the adult in the room.
Uber Drivers Are workers Not Self-Employed, Supreme Court Rules
Impactful news for Uber, who believed that through massive lobbying for California’s Prop22 and having had that passed, they’d set a precedent for other governments, globally. With the UK bucking it, this opens up much more risk for Uber’s shareholders, as its recent price decline implies. The ‘move fast and break things’ motto which propelled these firms to stardom is being dismantled as they’ve become behemoths, and is a clarion call for those aspiring to follow in their footsteps.
‘I Can’t Keep Doing This’: Gig Workers Say Pay Has Fallen After California’s Prop 22
The thorny issue of how to classify the myriad workers in a gig economy, let alone who bears the costs for their care in a civilised society, continues to evolve. It’s clear there needs to be granular innovation to accommodate the various types of work performed under the ‘gig’ label. For some the work is full-time, while for others it’s supplemental, with each requiring a different approach to coverage. As we’ve repeatedly highlighted, the underlying issue is the speed with which tech firms single-mindedly pursue growth and profits. There doesn’t appear to be the thoughtful innovation in their policy infrastructure required for long-term sustainability, even as they propagate new technologies and business models. It echoes their motto of ‘ask for forgiveness, not permission.’ Sadly, governments, taxpayers and workers are likely left to absorb the resulting costs.
UK Competition Watchdog Warns Big Tech Firms of Investigations
Governments around the world are gearing up to go after the big tech firms, under one auspice or another. The disturbing aspect for investors is how long these tech companies have had to act responsibly via self-governance, yet chose not to in the pursuit of unfettered profit. Now they have to spend considerable resources (not least board and executive distraction) to lobby, appear in front of politicians and regulators, hire massive in-house legal teams, etc. to avoid the worst impacts. Some companies are learning from these mistakes, while others persist in intransigent behaviours. Investors ought to be wary of this cohort.
Google Fires Second AI Ethics Leader as Dispute Over Research, Diversity Grows
Two firings in a row, from a department where diversity issues were raised, does not reflect well on Google – especially when both researchers were heads of the department, female, with one a minority, and they were very well regarded in the industry. Hiring this kind, and level, of talent is highly challenging for big tech firms, which is why – in addition to the reputational impact – it’s startling. What possible reasons could justify this clean sweep? What further impact will it have on the culture in the department, let alone Google, if it’s shown that those who challenge are shown the door? While we don’t know the full story, nor will many others, so the reputational damage is likely to endure.