Nebraska banned TikTok on all state electronic devices (see 2008060046), Gov. Pete Ricketts (R) announced Wednesday, citing security concerns. “TikTok is legally obligated to provide data from its users to [China’s] communist regime upon request,” he said, saying the decision is based on maintaining data security. The company didn’t comment.
Zoom “falsely and repeatedly” claimed it used end-to-end encryption to protect users’ videoconferencing communications, Consumer Watchdog alleged in a lawsuit announced Tuesday. Zoom made false promises throughout its website when the company has always had access to data on the platform, the lawsuit said. Filed in D.C. Superior Court, the lawsuit alleges violations against the District of Columbia Consumer Protection Procedures Act. "We take privacy and security extremely seriously and are committed to continuous enhancements, including the timely beta testing and implementation of end-to-end encryption," a company spokesperson said.
U.S. and EU officials started talks for a potential “enhanced EU-U.S. Privacy Shield framework,” Commerce Secretary Wilbur Ross and European Commissioner for Justice Didier Reynders announced Monday (see 2007240031): “The European Union and the United States recognize the vital importance of data protection and the significance of cross-border data transfers to our citizens and economies.” The two sides are committed to privacy and rule of law and have collaborated for decades, they said.
Congress should force Amazon to divest its storage and shipping business to ensure the company isn’t abusing its dominance, more than 20 advocacy groups wrote the House Judiciary Committee Thursday. Demand Progress, Fight for the Future, Open Markets Institute and Public Citizen signed the letter to Chairman Jerry Nadler, D-N.Y., and Antitrust Subcommittee Chairman David Cicilline, D-R.I., commending the recent hearing with Big Tech CEOs (see 2007290063). The groups suggested lawmakers consider structural separations and bright lines rules in its report to rein in the power of Amazon, Apple, Facebook and Google. Amazon and the Internet Association didn’t comment.
FCC Commissioner Geoffrey Starks sent letters to AT&T and Verizon asking how they collect and make money off sensitive consumer data “generated for advertising placement purposes,” said a Wednesday news release. Starks asked about the two companies’ “participation in real-time bidding exchanges for mobile advertising, including through the advertising technology companies they have acquired in recent years,” the release said: “The letters also request details on each provider’s policies and procedures to prohibit or minimize tracking of Americans to protests, including the Black Lives Matter protests, and other sensitive locations, including places of worship and medical providers.” AT&T is "reviewing the letter and will respond appropriately," a spokesperson emailed. Verizon didn’t comment.
Google’s proposed buy of Fitbit “is about devices, not data,” blogged Rick Osterloh, Google senior vice president-devices and services Tuesday. It would “increase choice, and create engaging products and helpful experiences,” said Osterloh of the deal announced in November (see 1911010051). The European Commission is concerned it would further entrench Google's market position in online advertising “by increasing the already vast amount of data that Google could use” for targeted ads, it said. EU Executive Vice-President Margrethe Vestager said European consumers’ wearables use is expected to grow, along with data that provides “key insights” about their health. It wants to ensure Google’s control over data collected through wearables due to the transaction “does not distort competition.” Osterloh said Google doesn’t make or sell wearables that compete with smartwatches and fitness trackers from Apple, Samsung, Garmin, Fossil, Huawei and Xiaomi: the combination of Google and Fitbit's hardware efforts "will increase competition in the sector, making the next generation of devices better and more affordable." Google has been "clear from the beginning that we will not use Fitbit health and wellness data for Google ads,” said the executive, noting the company recently offered to make a legally binding commitment. “We will give Fitbit users the choice to review, move or delete their data.”
House Commerce Committee Republicans on Monday requested a classified State Department briefing on TikTok, days after President Donald Trump threatened to ban the Chinese social media platform from the U.S. Microsoft is continuing talks to buy TikTok, after CEO Satya Nadella discussed it with Trump, it said Sunday: “Microsoft fully appreciates the importance of addressing the President’s concerns." It's committed to acquiring TikTok "subject to" a complete review, it said. House Commerce Committee ranking member Greg Walden, Ore.; House Minority Whip Steve Scalise, La.; and House Consumer Protection Subcommittee ranking member Cathy McMorris Rodgers, Wash., raised concerns about the video app and alleged ties to a Chinese company doing secret face recognition and data harvesting. Walden and Rodgers cited previous complaints about TikTok on children’s privacy, corporate governance and COVID-19. Banning TikTok would threaten U.S. jobs and the livelihood of American content creators reliant on the app, Information Technology and Innovation Foundation Vice President Daniel Castro said: “In a week where many policymakers have called for more competition in the tech sector, undermining one of the fastest-growing social media platforms would be a step in the wrong direction.” ACT|The App Association said it's encouraged by ongoing negotiations for Microsoft to buy TikTok: “While this is an ongoing negotiation with no guaranteed outcome, we strongly urge policymakers to avoid a government intervention in banning TikTok that could result in an unprecedented geofencing of access to an online service used by 50 million Americans a day and create significant disruption to the app economy.” The State Department didn’t comment. The Microsoft blog suggests Trump “at least tentatively blessed the deal,” said Cowen analyst Paul Gallant. The deal could strengthen Facebook’s argument against antitrust scrutiny, and it might invite more attention on Microsoft from policymakers in Washington, he said.
U.S. and European regulators should “swiftly begin negotiations” to replace the Privacy Shield (see 2007240031) and allow an enforcement moratorium, 17 trade associations wrote officials Thursday. The Information Technology Industry Council, ACT|The App Association, Computer & Communications Industry Association, U.S. Chamber of Commerce and Software & Information Industry Association signed the letter to European Justice Commissioner Didier Reynders, U.S. Commerce Secretary Wilbur Ross and European Data Protection Board Chair Andrea Jelinek. Negotiators should begin immediately on a “solid legal framework to avoid trade disruptions to EU-U.S. data flows,” they wrote. EU data protection authorities should provide guidance for companies that used the PS and should allow a “reasonable enforcement moratorium,” they wrote. A Commerce Department spokesperson cited a previous statement from Ross. The European Data Protection Board didn’t comment.
The Leadership Conference on Civil and Human Rights, Leadership Conference Education Fund and more than two dozen other groups urged lawmakers, vendors and companies Wednesday to implement guardrails to ensure new hiring assessment technologies that rely on algorithms and artificial intelligence don’t discriminate against marginalized groups. AI “by its very nature, risks replicating and deepening existing inequities when it relies on data from the current workforce that is not sufficiently representative,” the groups said in a set of principles. “Hiring assessment technologies must advance equity, not erect artificial barriers to employment. This will require proactive interventions.”
TikTok will disclose algorithms and content moderation policies in real-time, CEO Kevin Mayer blogged Wednesday. This is meant to “drive deeper conversations around algorithms, transparency, and content moderation, and to develop stricter rules of the road,” he wrote. He encouraged other tech companies to do the same: “All companies should disclose their algorithms, moderation policies, and data flows to regulators. We will not wait for regulation to come.”