Situational awareness: DoorDash CEO Tony Xu says the company is doing away with its controversial practice of counting customer tips toward a worker's guaranteed minimum pay.
Today's Smart Brevity count: 1,464 words, < 6 min read.
Illustration: Sarah Grillo/Axios
The Federal Trade Commission has settled with Facebook over allegations that it "repeatedly used deceptive disclosures and settings to undermine users’ privacy preferences," in a deal that will apply some new oversight to its practices and force it to pay $5 billion, Axios' David McCabe reports.
Why it matters: Revelations last year that the political consultancy Cambridge Analytica had gathered a large trove of Facebook user data, and failed to get rid of it, set off a broader reckoning around data privacy in the era of Big Tech.
What they're saying: Zuckerberg said in a post that as a result of the deal, Facebook was "going to make some major structural changes to how we build products and run this company."
Yes, but: Democratic policymakers were critical of the settlement, which was approved by the Republican-controlled FTC along party lines.
The FTC also sued Cambridge Analytica, and settled with its former top executive and the developer responsible for making the app that collected the Facebook data in question.
The big picture: The settlement will roil an already active debate among lawmakers and advocates over how to best regulate data-hungry online services like Facebook.
What's next: Facebook has its earnings call this afternoon.
Illustration: Sarah Grillo/Axios
Separately, Big Tech — including Facebook — is getting squeezed on another front via the Justice Department.
What's new: The Justice Department announced Tuesday that it will probe the market power of online platforms, in another sign of deepening trouble in Washington for major tech companies, David reports.
Why it matters: Antitrust action is one of the most significant steps a government can take to rein in a company — and Justice's announcement is the kind that can kick off years-long probes.
Flashback: The first indication that the DOJ under Attorney General William Barr could pursue antitrust investigations against major Silicon Valley companies came earlier this year, when the agency split jurisdiction over competition concerns about tech companies with the Federal Trade Commission.
The big picture: Support for more aggressive antitrust enforcement has grown on the left in recent years, culminating in presidential candidate Elizabeth Warren's proposal to break up Big Tech.
Between the lines: An antitrust prosecution would be a first for this generation of tech companies, which have benefited from enforcers' practice of identifying market dominance by looking for places where it results in higher consumer prices. Google and Facebook give away most of their services for free.
The bottom line: These are the sorts of investigations that, if they pick up steam, can humble corporate giants and have major implications for the economy.
Illustration: Axios Visuals
Snapchat's parent company has had a bumpy ride through a series of product and corporate setbacks in 2018. But now it's slowly making a comeback, Axios' Sara Fischer and Kia Kokalitcheva report.
Why it matters: Snap's story is yet another example of the harsh realities of going public and facing comparisons to expansive rivals — in this case, Facebook. Now that Snap is regaining momentum, investors' enthusiasm for the company's long-term potential is also creeping back.
Driving the news: Snap surprised Wall Street Tuesday with better-than-expected second quarter earnings results, proving that its efforts to expand globally are working.
Between the lines: Among the slew of news the company discussed on Tuesday's earnings call, 3 points stood out as priorities for the company...
The big picture: Tuesday's outcome shows renewed investor optimism about Snap's prospects.
Yes, but: Snapchat still has a long way to go to convince investors that it has the growth potential of rival apps.
Rather than just leave a resignation letter on the boss' desk, the communications head for independent British parliament member Jared O'Mara posted his exit memo on his Twitter account.
And oh, what a letter it was:
"Jared, you are the most disgustingly morally bankrupt person I have ever had the displeasure of working with," they said in the first of several tweets. "You do not care about your constituents. You do not care about anyone but yourself."
Our thought bubble: Even if you let a social media person or team handle your accounts, it's probably not a good idea if they're the only ones with the password.
This cardinal spent the day stalking advice columnist Amy Dickinson. So she pulled out her phone and captured some amazing slo-mo footage — which I now share here. For more details, Ask Amy.