Login announced today that it now expects wittiness for the second quarter ending June 30 will fall short of previous expectations. "We had hoped to have more clever introductions, but found our sense of humor was offset by difficult market conditions," Axios' Ina Fried said in a statement.
1 big thing: Calif. privacy law sets stage for debate
The privacy bill signed into law in California on Thursday won’t settle the global fight over privacy, but it does usher in a new phase that could lead to a new national model for regulating data online, Axios' David McCabe reports.
What's happening: The bill was drafted and passed quickly, with even the bill's authors saying there may be additional changes and clarifications before it goes into effect. “If possible, we could find some fixes this year,” said Ed Chau, member of the California Assembly. “That’s my hope, but no promises.”
- The law passed Thursday goes into effect in 2020. If nothing changes before then, the law will put restrictions on Google, Facebook and other companies in the business of gathering data directly from consumers.
- Facebook vice president Will Castleberry said that while "not perfect, we support" the law, though some trade groups that represent the company were more critical in statements after it passed.
- Supporters agreed to pull their privacy ballot measure, which was slightly more aggressive, from the November election, so voters won't weigh in on the debate.
As it stands now, the law lets users:
- Learn details about the data that companies hold on them.
- Opt-out of collected data being sold to a third party (Google and Facebook both say they don't do this, because you cannot directly buy an individual's data from them).
- In some cases, sue if their data isn’t properly protected.
- Use new protections aimed at children.
What’s not settled:
1. Whether this bill sets a standard, as some privacy advocates hope since California's size can make it a trendsetter when it comes to policy.
- “Well, between the Europeans and California, we’re starting to move towards having a universal privacy bill of rights, and I just think it’s going to create a precedent that ultimately is going to be a national standard,” said Sen. Ed Markey (D-Mass.) as he left the U.S. Capitol on Thursday.
2. Whether Silicon Valley can change it before 2020. Multiple tech industry sources said that companies will push for alterations to the bill.
3. Whether this spurs any action in Washington. The Trump administration is exploring ways to create a less restrictive counterweight to Europe’s GDPR privacy rules, in consultation with business groups. California is on the White House’s mind.
- Gail Slater, the White House adviser working on privacy, called the ballot measure in California that inspired the new law, “GDPR light with some California tweaks to do it” when speaking at a conference last month.
The big picture: Policymakers around the globe — in Washington, Brussels and now Sacramento — are all articulating different visions of how consumer data should be handled online. There may only be one internet, but there are many jurisdictions, and tech's colossal companies must deal with all of them.
2. Reaction to California's new law is mixed
Another way of gauging the law is to look at who is lauding it and who is condemning it.
- Center for Humane Technology, a nonprofit which advocates for "time well spent" with tech devices, said:
- Common Sense Media, a nonprofit focused on media for families and children, called California a pioneer in both tech revolution and now consumer privacy safeguards. James P. Steyer, CEO and founder of Common Sense, said they expect other states to follow, and added:
- TechNet, an industry lobby, said the law offers new layer of protection but will need revision.
- The ACLU of Northern California:
3. Instagram gives Facebook a new life
When Facebook bought Instagram for $1 billion back in 2012, its goal was to ensure that it was the social network of choice for another generation.
Now, as my colleague Sara Fischer reports, that bet is starting to pay off. Instagram is surging as growth at the core network is tapering off. Bloomberg Intelligence recently valued Instagram at $100 billion, making the once-hefty price tag seem like a steal.
- Instagram announced last week that it hit 1 billion users, adding roughly 200 million users in less than one year. Instagram is expected to reach 2 billion users in the next five years, according to Waral, meaning the photo app is growing its user base at a much faster rate than the original Facebook platform.
- Even though Snapchat first created the Stories feature in 2014, Instagram Stories usage has now doubled Snapchat's user base. Instagram announced Thursday that it reached 400 million active users of its "Stories" product, while Snapchat has roughly 191 million daily active users.
- Other app acquisitions have not yet yielded such high returns. For example, Facebook bought WhatsApp for $19 billion in 2014 and while its user base and engagement continues to grow, the app is still not profitable.
Go deeper: Read Sara's full story.
4. Niantic opens AR platform and buys startup
Niantic, the creator of Pokémon Go, Ingress and a forthcoming Harry Potter title, on Thursday detailed its plans to open its augmented reality game engine to others. It also announced it has bought Matrix Mill, a London-based startup.
Seeing is believing: The best way to appreciate where the company is headed on AR is to check out the three demo videos it released Thursday. Especially cool is the first one, which shows Pokémon characters peeking out from real world objects.
5. Take Note
- Red Bull Creation is sponsoring a three-day event in Oakland starting today encouraging teams to create spaces for public interaction under the theme "Bridges over Walls."
- Twitter CEO Jack Dorsey announced a reorganization of company executives. The move elevates Kayvon Beykpour to head of product, with former chief Ed Ho (who had been on leave) taking on a new part-time role working on trust and safety.
- Airbnb is giving employees fresh stock grants and promising cash bonuses as it looks to alleviate worker concerns it has yet to go public.
- Bird confirmed its latest $300 million funding.
- Facebook and Twitter released new ad transparency efforts ahead of the midterm elections.
- Verizon is shutting down its Go90 video service, which cost a bundle, but never really took off.
- Amazon is buying online pharmacy PillPack, hammering stocks in the retail pharmacy business.
- Players of Overwatch have gotten creative to celebrate Pride Month inside the video game, Kotaku writes.
6. After you Login
As you know, five people were killed yesterday in the newsroom of the Capital Gazette in Annapolis, Maryland.
And you can learn more about each of those who died here.