Apple should continue offering paid music downloads, which benefit the music industry and consumers, the Content Creators Coalition said Wednesday in a letter to Apple Music Vice President Oliver Schusser. Reports indicate Apple is considering eliminating the service, but the company has dismissed them as inaccurate, the group wrote: “Even with the rise of streaming, downloads continue to supply 15% of industry revenues, a vital pillar in the many-legged-stool it takes to make a successful music career." The company didn’t comment.
Facebook’s largest investors should address concerns about the social media platform’s handling of risk, privacy and transparency, said 78 human rights, civil rights and investment groups Wednesday. Facebook is hiring independent auditors to analyze potential platform bias against minority communities and conservative groups, according to Axios. The groups “demand better” from Facebook’s largest investors, including Vanguard, Fidelity and BlackRock, the group said. Center for Digital Democracy, Open MIC and Access Now were among the letter’s signers. “Getting outside feedback will help us improve over time -- ensuring that we can more effectively serve the people on Facebook,” Facebook Vice President-Global Policy Joel Kaplan said in a statement.
Cambridge Analytica ceased operations Wednesday after filing for bankruptcy in the U.K., parent company SCL Elections said, citing a “siege of media coverage” that has driven away “virtually all” customers and suppliers. Cambridge Analytica is accused of purchasing private data of some 87 million Facebook users in support of President Donald Trump’s 2016 campaign (see 1804100054). The company claimed Cambridge Analytica acted ethically and lawfully, which it said is supported by a report from Queen’s Counsel Julian Malins. "Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the company’s efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas,” the company said. Parallel bankruptcy proceedings will begin soon in the U.S., it said.
The FTC swore in Noah Phillips, Rebecca Slaughter and Rohit Chopra as commissioners Wednesday, effectively filling the commission. Joseph Simons was sworn in Tuesday as FTC chairman (see 1805010028). Christine Wilson is expected to replace Commissioner Maureen Ohlhausen when she leaves office.
Groupon acquired U.K.-based software company Cloud Savings Co. for $65 million, the Chicago-based e-commerce platform announced Tuesday. Cloud Savings owns European online discount code platform Vouchercloud and digital gift platform Giftcloud.
WhatsApp CEO Jan Koum’s departure after clashing with parent company Facebook could be the “starting point for more aggressive monetization of WhatsApp” and increased advertising, Barclays analysts said Tuesday. Barclays “sized the opportunity conservatively at $11 [billion] in incremental revenue from [Facebook] Messenger and WhatsApp revenue by 2020.”
The EU General Data Protection Regulation poses a $500 billion threat to noncompliant U.S. businesses, CompliancePoint said Tuesday. There are more than 27.9 million small businesses registered with the U.S. Census Bureau and International Trade Administration, and 98 percent of businesses export goods internationally, according to the U.S. Small Business Administration. Under the GDPR, companies face noncompliance fines up to $20 million per infraction, or 4 percent of global revenue, whichever is more.
The Supreme Court will hear an online privacy case in which Google is asking the high court to uphold an $8.5 million settlement directed to charitable and academic organizations instead of alleged victims, the court said Monday (see 1708230003). Google agreed to an $8.5 million class-action settlement in 2013 with 129 million plaintiffs, who claimed the platform violated their privacy by revealing personal search engine data to third parties. A lower court upheld the settlement. Google agreed to a "cy-pres" deal, with $3.2 million earmarked for attorneys' fees and $5.3 million for academic and charitable organizations, who agreed to use the money to increase public awareness, education or internet privacy R&D. A cy-pres designation is used when the individual payments are considered too small to justify direct compensation for plaintiffs. Challenging the settlement in Frank v. Gaos is Competitive Enterprise Institute Litigation Director Ted Frank, who claimed the settlement was enough to fund a claims process or lottery distribution to class members but "improperly favored the third-party charities.” The 9th U.S. Circuit Court of Appeals was right to uphold the settlement, Google said, as the cy-pres awards “will benefit a much greater proportion [and quite possibly all] of the class.” Challengers raised issues about Google’s business relationships with most of the cy pres recipients, which include Stanford University, Harvard University and the World Privacy Forum.
FCC Commissioner Brendan Carr is in Michigan and Indiana this week to discuss broadband deployment. In Michigan, Carr is meeting with aides to Gov. Rick Snyder and with Rep. Fred Upton, both Republicans, and Democratic Rep. Debbie Dingell, plus state lawmakers. He attended a broadcasters dinner in Lansing Monday and Tuesday was visiting an egg farm. On Wednesday, Carr travels to Indiana to spend a day with Republican Sen. Todd Young as they tour broadband facilities. On Thursday, Carr is to meet with Gov. Eric Holcomb (R). Carr has been tweeting throughout the trip.
Consumer groups, law enforcement, researchers and industry representatives will explore cryptocurrency scams June 25 in Chicago at an FTC workshop at DePaul University, the agency announced Monday.