Government & Policy

Carbon cap and trade for developing world could spur massive investments — if it works • ZebethMedia

By zebethcontrolPosted on November 8, 2022Posted in cap and trade, carbon emissions, Climate, EC Food Climate and Sustainability, Government & PolicyNo Comments

Ten years after a cap-and-trade scheme championed in part by John Kerry was unceremoniously killed by one of his colleagues across the aisle, the former senator turned climate envoy is once again pitching the policy as a solution to climate change. As an idea, cap and trade isn’t bad! It works by having governments cap pollution levels and allot limited permits to polluters so they figure out how best to clean things up. Oftentimes the answer is better technology. Other times the answer is to buy permits from other companies that have done a better job at cutting their emissions. Over time, the number of permits gets ratcheted down and pollution levels drop. As a policy, cap and trade has been widely applied, in many cases successfully. The U.S. used one in the 1980s to successfully slash sulfur dioxide pollution that was causing acid rain and again in the 2000s to cut levels of nitrogen oxides. The EU is currently using one to trim its carbon emissions, and there are a few regional systems in North America. Kerry’s new proposal, as reported by the Financial Times, hopes to use cap and trade to encourage investment in the power sectors of developing countries. It’s a policy that’s heading in the right direction, though with enough missing pieces to have me wondering whether it’ll turn out to be a bust or a diplomatic breakthrough, similar to the Paris Agreement. Here’s how it would work.

Microsoft’s $68.7BN play for Activision heads for in-depth EU antitrust probe too • ZebethMedia

By zebethcontrolPosted on November 8, 2022Posted in Gaming, Government & PolicyNo Comments

The $68.7 billion gaming mega-merger between Microsoft and Activision Blizzard is facing in-depth competition scrutiny in the European Union. EU regulators had been taking a preliminary look at the proposed deal, after the transaction was notified to the bloc’s regulators at the end of September. But today the Commission confirmed it will open a deeper probe — following in the footsteps of the UK’s antitrust authority which announced its own in-depth investigation back in September. In a statement today, the Commission said it’s concerned the proposed acquisition could reduce competition in the markets for the distribution of console and PC video games and also for PC operating systems — with the risk of driving up prices and reducing quality and innovation for consumers. “The Commission’s preliminary investigation shows that the transaction may significantly reduce competition on the markets for the distribution of console and PC video games, including multi-game subscription services and/or cloud game streaming services, and for PC operating systems,” it wrote. “The preliminary investigation suggests that Microsoft may have the ability, as well as a potential economic incentive, to engage in foreclosure strategies vis-à-vis Microsoft’s rival distributors of console video games, such as preventing these companies from distributing Activision Blizzard’s console video games on consoles or degrading the terms and conditions for their use of or access to these video games.” “When it comes to multi-game subscription services and/or cloud game streaming services in particular, the Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access, to the detriment of its rival distributors of console and PC video games that offer such services, to its own PC and console video games, which are key for the provision of the nascent services of multi-game subscription and cloud game streaming,” it added, noting that it is particularly concerned of the risk of foreclosure affecting “high-profile and highly successful games” (so-called ‘AAA’ titles) — such as Activision Blizzard’s ‘Call of Duty’ franchise. As regards PC operating systems — an area where Microsoft’s Windows platform dominates — the Commission has concerns that the deal could reduce competition on the PC OS market by reducing the ability of rival providers to compete with Windows if Activision Blizzard’s games get combined with Microsoft’s distribution of games via cloud game streaming to Windows. “This would discourage users to buy non-Windows PCs,” it suggested, adding: “The preliminary investigation suggests that Microsoft may have the ability, as well as a potential economic incentive, to engage in such conduct vis-à-vis rival providers of PC operating systems.” Commenting in a statement, Margrethe Vestager, Commission EVP in charge of competition policy, added: “Video games attract billions of users all over the world and are among the fastest growing forms of digital entertainment. For years, Microsoft has been a major player across the gaming supply chain. It is acquiring Activision Blizzard, a highly successful producer of gaming content. We must ensure that opportunities remain for future and existing distributors of PC and console video games, as well as for rival suppliers of PC operating systems. The point is to ensure that the gaming ecosystem remains vibrant to the benefit of users in a sector that is evolving at a fast pace. Our in-depth investigation will assess how the deal affects the gaming supply chain.” The Commission now has 90 working days — until March 23, 2023 — to take a decision on whether to clear or block the acquisition. Alternatively, the EU could agree to a conditional approval by accepting commitments from the parties which have the opportunity to propose and negotiate remedies to address competition concerns during the merger review process. Such a conditional approval might include an agreement to sell part of the combined business or licence technologies to other market players, for example. Microsoft has previously said it is committed to working with international competition regulators to allay concerns — but it remains to be seen what the pair might propose to get the deal waived through. Given the scale of the mega-merger some form of conditional clearance seems the most likely outcome for Microsoft-Activision in the region — although the Commission’s PR contains its standard disclaimer that “the opening of an in-depth inquiry does not prejudge the outcome of the investigation”.

Nvidia touts a slower chip for China to avoid US ban • ZebethMedia

By zebethcontrolPosted on November 8, 2022Posted in alibaba, China, chip, Government & Policy, Hardware, Huawei, nvidia, semiconductor, TSMCNo Comments

Two months after the U.S. choke off China’s access to two of Nvidia’s high-end microchips, the American semiconductor design giant unveiled a substitute with a reduced processing speed for its second-largest market. The Nvidia A800 graphic processing unit is “another alternative product to the Nvidia A100 GPU for customers in China,” a spokesperson for Nvidia said in a statement to ZebethMedia. “The A800 meets the U.S. government’s clear test for reduced export control and cannot be programmed to exceed it.” The new chip was first reported by Reuters on Monday. The A100 processor is known for powering supercomputers, artificial intelligence, and high-performing data centers for industries ranging from biotech and finance to manufacturing. Alibaba’s cloud computing business has been one of its customers. A100, along with Nvidia’s enterprise AI chip H100, were placed under a U.S. export control list to “address the risk that the covered products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China and Russia.” Nvidia previously reported that the U.S. ban could affect as much as $400 million in potential sales to China in the third quarter, so the new chip seems to be an attempt to remedy the financial loss. The A800 GPU went into production in Q3, according to Nvidia’s spokesperson. Indeed, chip distributors in China, such as Omnisky, are already marketing A800 in their product catalogs. The chip looks to be designed to circumvent U.S. export rules while still carrying out other core computing capabilities. Most of the key specs of A100 and A800 are identical except for their interconnect speeds: A800 runs at 400 gigabytes per second while A100 functions at 600 gigabytes per second, which is the performance threshold set by the U.S. ban. According to an analysis from the Center for Strategic and International Studies, a bipartisan think tank, “By only targeting chips with very high interconnect speeds, the White House is attempting to limit the controls to chips that are designed to be networked together in the data centers or supercomputing facilities that train and run large AI models.” Nvidia isn’t the only one slowing down its chips in order to evade U.S. sanctions. Alibaba and Chinese chip design startup Biren, which have been pouring resources into making rivals of Nvidia processors, are modifying the performance of their latest semiconductors, according to the Financial Times. That’s because Alibaba and Biren, like other fabless semiconductor firms, contract Taiwan’s TSMC to make their products. And because U.S. export controls cover chip sales by companies using American technologies, sales from TSMC fabs to China could be curtailed.

How can I stay in the US if I’ve been laid off? • ZebethMedia

By zebethcontrolPosted on November 7, 2022Posted in Column, Dear Sophie, EC Column, EC DEI, Government & Policy, immigration law, Sophie Alcorn, Startups, tech layoffs, Verified Expert - lawyerNo Comments

Sophie Alcorn Contributor Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives. More posts by this contributor Dear Sophie: How can students work or launch a startup while maintaining their immigration status? Dear Sophie: How can early-stage startups improve their chances of getting H-1Bs? Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies. “Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.” ZebethMedia+ members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off. Dear Sophie, I was laid off and I’m on an H-1B. I have enough savings to survive for a while. What should I do if I have been let go from my job? I am on an H-1B, have an approved I-140, and an I-797 that expires in March 2024. If I have to leave the U.S., can my current I-797 be transferred to my next employer? Are there any issues I should be aware of? — Upended & Unemployed Dear Upended, I’m so sorry to hear you’ve been laid off, and the stress this has no doubt added to your life! Your questions are top of mind in light of the thousands of others being laid off from Twitter, Facebook, Stripe, Brex, Lyft, and other tech companies. I realize this can be an incredibly stressful time. It is my personal life mission to help immigrants to have peace of mind, including being able to stay in the United States, keep their families safe, and build their dreams of making the world a better place. I am so happy to have the opportunity to share my advice through this column! The good news is U.S. Citizenship and Immigration Services (USCIS) allows a 60-day grace period to remain in the U.S. if you lose your job while on an E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, or TN visa. And we can turn your 60-day grace period into a total of eight months of immigration runway — it is possible to extend your time in the U.S. beyond 60 days by filing a change of status from H-1B to another category such as a visitor, student, or dependent spouse. When individuals who need visa sponsorship get laid off, we often hear their highest priority is to maintain their ability to stay in the United States beyond the 60-day grace period, especially if they own a home, have a spouse, or have dependent kids in school. Often people ask me what they need to do if they can’t get a job that offers visa sponsorship within the 60-day grace period or how they can finally follow their heart to explore their own startup ideas. Here are my recommendations for how to stay in the United States, as well as options and opportunities you should keep in mind. To work for another company, start interviewing NOW! Unfortunately, you cannot transfer your current I-797 to your next employer. However, you can transfer your H-1B to your new employer following the H-1B application process. If you are approved, you will receive a new I-797. Put all of your efforts into finding another job. Get as many interviews as you can. Reach out to everyone in your network — friends, family, former colleagues, co-workers, neighbors, and acquaintances. Take advantage of social media and attend networking events. Also, take a look at where venture capital is flowing these days; companies that are receiving Series A funding or above are likely hiring. At a job interview, be direct about your need to transfer your H-1B to a new employer. If the company is not willing to sponsor you, move on. Ideally, you should accept a job offer no more than 45 days into your 60-day grace period unless you have applied for another fallback status because it can take several weeks to prepare and file the H-1B transfer. Additionally, if you qualify for an O-1A extraordinary ability visa, you could consider using an agent to file an O-1A petition on your behalf, which would make your visa independent of any particular employer. This offers you both redundancy because you can change or add paid jobs in the United States without amending the petition every time, generally, as long as you are continuing to work in your field. To work for your own startup, start NOW! If you want to create your own tech venture, find someone you can work with to be your co-founder. Find out if you qualify for an O-1A ASAP or determine if you want to set up your startup to be compatible with an H-1B transfer. Talk with both an immigration attorney and a corporate attorney to devise the best structure for your startup and determine an immigration strategy for your startup to sponsor you for a visa. For many people, if they qualify, I suggest that your startup sponsor you for an O-1A, which offers more flexibility and freedom than an H-1B transfer. Many individuals on an H-1B visa in Silicon Valley and beyond are surprised when we tell them they already qualify for an O-1A. The added benefit of the O-1A is that it serves as a stepping stone to qualify for the EB-1A extraordinary ability green card, which is currently available. Devise a backup plan Have a backup plan and work with an immigration attorney to assess your options. You could transfer your H-1B, become an H-4 dependent visa holder if your spouse has an H-1B,

European Union lay outs data-sharing plan to boost transparency of p2p rentals • ZebethMedia

By zebethcontrolPosted on November 7, 2022Posted in eu short term rental initiative, Government & Policy, transparency, Vacation RentalsNo Comments

The European Commission has put forward proposed rules for short term rental platforms focused on boosting transparency and mandatory data-sharing — in what looks like a ‘softly does it’ approach to addressing concerns attached to the rise of vacation rentals on platforms like Airbnb. While p2p vacation rental platforms remain popular options for European citizens taking city breaks, they also continue to face opposition from residents of heavily touristed cities for driving up housing costs. The EU’s executive has been considering how to tackle this popular yet often controversy sector for some time — opening a consultation last fall for a short-term rental (STR) initiative that it said it wanted to develop “responsible, fair and trusted growth in short-term rentals, as part of a well-balanced tourist ecosystem”. The upshot is a proposal today centered on regulating data-sharing by short term rental platforms — an area it has previously focused on, securing an agreement with a number of major platforms (Airbnb, Booking.com, Expedia Group and Tripadvisor) back in March 2020 to share some data so the bloc’s statistical office could publish reports. Today it said the new proposal aims to enhance transparency of the p2p rentals sector with the same goal of helping public authorities “ensure their balanced development as part of a sustainable tourism sector”. “The new rules will improve the collection and sharing of data from hosts and online platforms. This will, in turn, inform effective and proportionate local policies to address the challenges and opportunities related to the short-term rental sector,” the Commission suggested in a press release. According to an official Q&A on the proposal, the package aims to harmonize the registration process for hosts and properties in order to generate a common set of data to support public authorities as they set policies for short term lets and make decisions about provisioning services. The data that p2p rental platforms will be required to share under the proposal includes: Data on the number of stays and guests; The registration number; and The web address (URL) of the listings for short-term rentals located in the territory of the requesting public authority. “This information would allow the identification of non-registered listings and help to enforce the registration obligation, further increasing transparency,” the Commission said. The proposal will not affect the ability of public authorities to set their own local rules for short-term accommodation rentals, per the Commission, which suggests public authorities will “just need to adapt their registration system”. (Or set one up if they do not currently operate one.) Registration systems will also have to be fully online and “user friendly”, as well as requiring a similar set of relevant info on hosts and their properties. Once completed, a host would receive a unique registration number. “The proposal fully respects the principle of subsidiarity and the competences of public authorities,” it added, emphasizing that national and local authorities “retain the power to design rules and policies on short-term rentals, to deal, for instance, with health and safety issues, urban planning, security and taxation issues” — so long as any rules they set respect the principles of justification and proportionality enshrined in the EU Services Directive. It also notes that other rules — such as the incoming Digital Services Act — may still apply to p2p rentals platforms. “The data collected on the basis of this proposal should allow public authorities to better assess the situation on the ground and make more targeted and proportionate rules,” it added. The Commission said other components of the framework will aim to: • Clarify rules to ensure registration numbers are displayed and checked: with online platforms being required to facilitate hosts to display registration numbers on their platforms and conduct random checks on whether hosts register and display the correct numbers, while public authorities will be able to suspend registration numbers and ask platforms to delist non-compliant hosts • Streamline data sharing between online platforms and public authorities: online platforms will be required to share data about the number of rented nights and of guests with public authorities, once a month, “in an automated way” — with lighter reporting “possibilities” foreseen for small and micro platforms (the Commission is suggesting those that do not hit a monthly average of 2,500 hosts might only need to share data quarterly, without a requirement to automate the reporting) — and public authorities able to receive this data through national “single digital entry points” • Allow the reuse of data, in aggregate form: the data generated under the proposal will, “in aggregate form”, feed tourism statistics produced by Eurostat and feed into the upcoming European data space for tourism. “This information will support the development of innovative, tourism-related services,” the Commission suggests • Establish an effective framework of implementation: Member States will be required to monitor the implementation of the transparency framework and put in place “relevant penalties” for non-compliance with the obligations Commenting in a statement, Commission EVP Margrethe Vestager, added: “The short-term accommodation rental sector has been boosted by the platform economy but has not developed with sufficient transparency. With this proposal, we are making it easier for hosts and platforms, big or small, to contribute to greater transparency in the sector. These sector-specific rules will complement the general rules of the Digital Services Act, which establish a set of obligations and accountability requirements for platforms operating in the EU.” The European Parliament and Council will need to weigh in on the proposal before it’s adopted — but the Commission has envisaged a two year implementation period after adoption and entry into force for platforms to adapt their systems for the necessary data sharing. So the earliest it could be up and running is, most likely, 2026.

Emerge Career’s pre-release job training lands $3.2M seed and new state contracts • ZebethMedia

By zebethcontrolPosted on November 4, 2022Posted in emerge career, Government & Policy, Startups, Y CombinatorNo Comments

Education options during and after incarceration have never been particularly extensive, despite the best intentions of educators. Emerge Career is working on changing that and its early success in putting formerly incarcerated folks to work is attracting investment from both VCs and government programs. It was only August when Emerge first appeared as it came out of Y Combinator’s latest batch, and I covered its initial ambitions and approach then. The team previously worked on Ameelio, which upended years of bad and exploitative video calling services in prisons, but also made the problem of education clear to them. Security and limited budgets at vocational and community colleges limit the amount of help they can actually offer people in the system, and courses from GEDs to trades often take a very “study by mail” approach during incarceration, or traditional brick and mortar one on release. Emerge changes that with modern video lectures and regular video call office hours with educators who specialize in the subject matter. At first the subject was strictly getting a commercial driver’s license, and that has helped numerous former inmates to find jobs soon after release in a sector hurting for labor. Now Emerge is also planning to offer nursing assistant and welding courses — two other areas where a shortage of workers means employers may not think twice about hiring someone recently out of prison. “Besides the clear labor shortage and high compensations, these are two professions that the justice-involved people we met in prisons and reentry centers across the country showed a lot of interest in,” said Emerge’s Gabe Saruhashi. “Trucking has been an exciting starting point, but we know many people cannot be away from home for prolonged periods of time, be it for personal reasons or reentry obligations. Ultimately, we want to offer training programs for individuals from all walks of life.” Co-founder Uzoma Orchingwa said the feedback from their first students has been very positive, highlighting the self-paced training (since it can be accessed piece by piece whenever is convenient), its speed (the aim is to go from zero to job in about two months), and the hands-on support they get from Emerge’s career coaches. Emerge reports that graduates from its program, who once averaged $13 an hour if they had a stable job, are pulling in an average of $78K now. It’s hoped the new programs will broaden the appeal and let the company support more students and locations. The company’s pitch pulled in local officials, a good step if you’re hoping to get into state-funded institutions, and now Emerge has landed a two-year, $845K contract (using American Rescue Plan funds) with the Connecticut Department of Labor. They also have several letters of intent, perhaps waiting on outcomes from the other programs. This early success has also brought in investment: a $3.2 million seed round led by Alexis Ohanian’s 776, with participation from the Softbank Opportunity Fund, Y Combinator, Lenny Rachitsky, and Michael Seibel. The money will be used to hire engineers and start up the new welding and nursing programs, as well as expand to three more states. Saruhashi said their ambition is to make Emerge Career the first choice for anyone in the country who has a disadvantaged background to get a second chance in the modern workforce.

Musk blames ‘activist groups’ for major advertisers pausing spending on Twitter • ZebethMedia

By zebethcontrolPosted on November 4, 2022Posted in advertising, content moderation, Government & Policy, report, Social, social media, TwitterNo Comments

As mass layoffs begin at Twitter, major advertisers are pausing their campaigns on the social network — a move that’s gotten the attention of newly-minted CEO Elon Musk. In a tweet this morning, Musk blamed a “massive drop” in Twitter revenue on “activist groups pressuring advertisers,” likely referring to an open letter sent Tuesday by civil society organizations urging Twitter advertisers to suspend their ads if Musk didn’t commit to enforcing safety standards and community guidelines. Musk bemoaned the activist efforts, claiming that “nothing has changed with content moderation” on Twitter. But recent developments tell a different story. Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers, even though nothing has changed with content moderation and we did everything we could to appease the activists. Extremely messed up! They’re trying to destroy free speech in America. — Elon Musk (@elonmusk) November 4, 2022 Sarah Personette, Twitter’s chief customer officer, who managed the company’s relationships with advertisers, resigned from the company late last Friday. According to Bloomberg, Twitter shut off employee access to certain content moderation and policy enforcement tools, prompting workers to cite concerns about misinformation ahead of the U.S. midterm elections. (Musk later agreed to restore access to the tools.) And as a part of the layoffs today, Twitter eliminated its curation team, which was responsible for providing factual context — and corrections, if necessary — to trending terms and conversations on the platform. The Wall Street Journal reported on Thursday that General Mills, Audi and Pfizer have joined the growing list of companies temporarily pausing their Twitter ads. (Automaker GM last week became the first major brand to announce a pause.) Oreo maker Mondelez and Volkswagen are also reevaluating their ad spend with the network, reportedly spooked by the departure of top executives over the past week including chief marketing officer Leslie Berland and VP of global client solutions Jean-Philippe Maheu. Mondelez, whose brands also include Ritz, Chips Ahoy!, Trident and Tate’s Bake Shop, is among the top largest 20 advertisers on Twitter in terms of ad spend. Given that ad sales accounted for more than 90% of Twitter’s revenue in Q2 2022, its pullback alone is likely to have a substantial impact on the platform’s bottom line. On Tuesday, a New York Times report revealed that that IPG — one of the world’s largest advertising companies, with customers such as Coca-Cola, American Express, Johnson & Johnson, Mattel and Spotify — issued a recommendation for clients to temporarily pause their spending on Twitter because of moderation concerns. According to the piece, the Global Alliance for Responsible Media (GARM), a coalition of platforms, advertisers and industry groups fighting harmful content on social media, also said it was monitoring how Twitter planned to uphold previous commitments to deal with content moderation. Musk has made increasing efforts to reassure advertisers that Twitter remains “brand safe,” publishing an open letter to advertisers saying that Twitter wouldn’t become a “free-for-all hellscape” and announcing plans to form a council to advise on content moderation. In recent days, Musk has also participated in video calls with ad companies including WPP PLC, according to the Wall Street Journal, during which he’s promised to rid Twitter of bots, add community management tools and introduce new ways to give advertisers the ability to choose which content to be near. Musk has little choice but to make good with Twitter’s sponsors. His deal to buy the company included making Twitter take on $13 billion in debt from banks, which means the social network will owe about $1 billion a year in interest payments.

Twitter faces a class action lawsuit over mass employee layoffs with proper legal notice • ZebethMedia

By zebethcontrolPosted on November 4, 2022Posted in Apps, elon buys twitter, Elon Musk, Government & Policy, Layoffs, Social, TwitterNo Comments

Twitter is being sued for not giving employees advanced written notice of a mass layoff, in violation of worker protection laws including the federal Worker Adjustment and Retraining Notification Act as well as the California WARN Act, both of which require 60 days of advance notice. Following Elon Musk’s takeover of Twitter, the company began mass layoffs early on Friday in an effort to reduce costs by eliminating 3,700 jobs, or 50% of its total workforce. Bloomberg first reported the news of the lawsuit, filed on November 3, 2022 in the U.S. District Court in the Northern District of California. The complaint notes that Twitter began its layoffs on November 1, when it terminated the plaintiff in the lawsuit, Emmanuel Cornet, without providing the proper written notice in violation of U.S. and California law. Additional plaintiffs, Justine De Caires, Jessica Pan, and Grae Kindel said they were terminated on November 3 by being locked out of their accounts. Twitter is also enacting widespread layoffs across its workforce today, on Nov. 4, 2022, it stated, adding that California’s Employment Development Department had not received a notice related to the event. The suit reminds the court that Musk had previously laid off employees without notice at another company he owns, Tesla. A federal judge later ruled that Tesla must inform workers of the proposed class action lawsuit, as the termination agreements they had signed may have been misleading and caused them to waive their rights under federal law, Reuters reported at the time. Musk had dismissed that lawsuit as “trivial,” when commenting on the lawsuit at the Qatar Economic Forum organized by Bloomberg. In the new complaint against Twitter, the plaintiffs are asking the court to declare that Twitter has violated the federal and California WARN Acts and certify the case as a class action suit. It’s also asking the court to stop Twitter from having the laid-off employees sign documents that would release their claims without informing them of this lawsuit. And it’s seeking a range of relief, including compensatory damages (including wages owed), as well as declaratory relief, pre- and post-judgment interest, plus other attorneys’ fees and costs. Under Twitter’s takeover deal terms, Musk had agreed to keep employee compensation and benefits the same. That means the laid-off employees should receive 60 days of salary and the cash value of the stock they were to receive within three months of their last date at the company, per law. “Elon Musk, the richest man in the world, has made clear that he believes complying with federal labor laws is ‘trivial’ We have filed this federal complaint to ensure that Twitter should be held accountable to our laws and to prevent Twitter employees from unknowingly signing away their rights.” Shannon Liss-Riordan, one of the attorneys who filed the lawsuit told CNN in a statement. Twitter hasn’t responded to requests for comment — but that could also be because its comms staff has been included in the layoffs. The company has gone about its mass layoffs in a chaotic and fairly cold fashion. Instead of being informed personally, Twitter employees were to receive an email with an update about their employment status by Friday 9 AM PT. If they still had a job, the email would come to their work inbox. If not, they’d receive a personal email as access to internal systems was cut off. A number of Twitter employees around the world have already posted tweets indicating that they have been laid off and are sharing sympathies with their fellow “tweeps.” Twitter also closed its offices temporarily as the layoffs were underway by disabling badge access. The transition has been one of confusion for Twitter staff. It’s been reported that Twitter’s new owner hadn’t officially communicated with employees following the deal’s closure on Oct. 27, leading staff to learn of events by following Musk’s tweets, through private chats, on workplace gossip site Blind, and by reading news media reports. Immediately after the takeover, Musk fired CEO Parag Agrawal, CFO Ned Segal, General Counsel Sean Edgett and Head of Legal Policy, Trust and Safety Vijaya Gadde. Other top executives like Chief Consumer Officer Sarah Personette and Chief of People and Diversity Dalana Brand handed in their resignations the following day. General manager for core technologies Nick Caldwell, Chief marketing officer Leslie Berland, Twitter’s head of product Jay Sullivan, and its vice president of global sales, Jean-Philippe Maheu, have also left. The company canceled its upcoming developer conference Chirp and it appears that Twitter’s head of its developer platform, Amir Shevat, is also out, as he tweeted he’s “better out than in” and thanked the developer community for the amazing journey they had. In addition to reducing the number of employees, Musk has also been overhauling Twitter’s product at a rapid pace. Earlier this week, he announced his intention to enact a new version of the Twitter Blue paid subscription, which will cost $8 per month and offer users the verification check mark, fewer ads, and the ability to post longer videos. According to a report by The Platformer, Twitter is also planning to shut down its long-form writing product Notes and newsletter product Revue, which was acquired in 2021. Tweets indicate that staff that worked on Twitter Communities were also laid off, suggesting that product may also be shut down. The new legal complaint is embedded below. Twitter class action lawsuit over mass layoffs by ZebethMedia on Scribd

A look at the EU’s plan to reboot product liability rules for AI • ZebethMedia

By zebethcontrolPosted on November 4, 2022Posted in AI liability directive, EU AI Act, EU Product Liability Directive, Government & Policy, regulating artificial intelligence, Robotics & AINo Comments

A recently presented European Union plan to update long-standing product liability rules for the digital age — including addressing rising use of artificial intelligence (AI) and automation — took some instant flak from European consumer organization, BEUC, which framed the update as something of a downgrade by arguing EU consumers will be left less well protected from harms caused by AI services than other types of products. For a flavor of the sorts of AI-driven harms and risks that may be fuelling demands for robust liability protections, only last month the UK’s data protection watchdog issued a blanket warning over pseudoscientific AI systems that claim to perform ’emotional analysis’ — urging such tech should not be used for anything other than pure entertainment. While on the public sector side, back in 2020, a Dutch court found an algorithmic welfare risk assessment for social security claimants breached human rights law. And, in recent years, the UN has also warned over the human rights risks of automating public service delivery. Additionally, US courts’ use of blackbox AI systems to make sentencing decisions — opaquely baking in bias and discrimination — has been a tech-enabled crime against humanity for years. BEUC, an umbrella consumer group which represents 46 independent consumer organisations from 32 countries, had been calling for years for an update to EU liability laws to take account of growing applications of AI and ensure consumer protections laws are not being outpaced. But its view of the EU’s proposed policy package — which consist of tweaks to the existing Product Liability Directive (PLD) so that it covers software and AI systems (among other changes); and a new AI Liability Directive (AILD) which aims to address a broader swathe of potential harms stemming from automation — is that it falls short of the more comprehensive reform package it was advocating for. “The new rules provide progress in some areas, do not go far enough in others, and are too weak for AI-driven services,” it warned in a first response to the Commission proposal back in September. “Contrary to traditional product liability rules, if a consumer gets harmed by an AI service operator, they will need to prove the fault lies with the operator. Considering how opaque and complex AI systems are, these conditions will make it de facto impossible for consumers to use their right to compensation for damages.” “It is essential that liability rules catch up with the fact we are increasingly surrounded by digital and AI-driven products and services like home assistants or insurance policies based on personalised pricing. However, consumers are going to be less well protected when it comes to AI services, because they will have to prove the operator was at fault or negligent in order to claim compensation for damages,” added deputy director general, Ursula Pachl, in an accompanying statement responding to the Commission proposal. “Asking consumers to do this is a real let down. In a world of highly complex and obscure ‘black box’ AI systems, it will be practically impossible for the consumer to use the new rules. As a result, consumers will be better protected if a lawnmower shreds their shoes in the garden than if they are unfairly discriminated against through a credit scoring system.” Given the continued, fast-paced spread of AI — via features such as ‘personalized pricing’ or even the recent explosion of AI generated imagery — there could come a time when some form of automation is the rule not the exception for products and services — with the risk, if BEUC’s fears are well-founded, of a mass downgrading of product liability protections for the bloc’s ~447 million citizens. Discussing its objections to the proposals, a further wrinkle raised by Frederico Oliveira Da Silva, a senior legal officer at BEUC, relates to how the AILD makes explicit reference to an earlier Commission proposal for a risk-based framework to regulate applications of artificial intelligence — aka, the AI Act — implicating a need for consumers to, essentially, prove a breach of that regulation in order to bring a case under the AILD. Despite this connection, the two pieces of draft legislation were not presented simultaneously by the Commission — there’s around 1.5 years between their introduction — creating, BEUC worries, disjointed legislative tracks that could bake in inconsistencies and dial up the complexity. For example, it points out that the AI Act is geared towards regulators, not consumers — which could therefore limit the utility of proposed new information disclosure powers in the AI Liability Directive given the EU rules determining how AI makers are supposed to document their systems for regulatory compliance are contained in the AI Act — so, in other words, consumers may struggle to understand the technical documents they can obtain under disclosure powers in the AILD since the information was written for submitting to regulators, not an average user. When presenting the liability package, the EU’s justice commissioner also made direct reference to “high risk” AI systems — using a specific classification contained in the AI Act which appeared to imply that only a subset of AI systems would be liable. However, when queried whether liability under the AILD would be limited only to the ‘high risk’ AI systems in the AI Act (which represents a small subset of potential applications for AI), Didier Reynders said that’s not the Commission’s intention. So, well, confusing much? BEUC argues a disjointed policy package has the potential to — at the least — introduce inconsistencies between rules that are supposed to slot together and function as one. It could also undermine application of and access to redress for liability by creating a more complicated track for consumers to be able to exercise their rights. While the different legislative timings suggest one piece of a linked package for regulating AI will be adopted in advance of the other — potentially opening up a gap for consumers to obtain redress for AI driven harms in the meanwhile. As it stands,

TikTok privacy update in Europe confirms China staff access to data as GDPR probe continues • ZebethMedia

By zebethcontrolPosted on November 3, 2022Posted in China, data transfers, GDPR, Government & Policy, Privacy, Social, TikTokNo Comments

An incoming privacy policy change announced by TikTok yesterday for users in Europe — which, for the first time, names China as one of several third countries where user data can be remotely accessed by “certain” company employees to perform what it claims are “important” functions — has landed months ahead of expected movement on a year+ long investigation into the platform’s data exports to China under the bloc’s General Data Protection Regulation (GDPR). The GDPR probe into the legality of the video sharing platform’s data transfers to China is being led by Ireland’s Data Protection Commission (DPC), TikTok’s lead privacy regulator in the region, which opened the inquiry just over a year ago. The DPC told ZebethMedia today that it expects its TikTok data transfers inquiry to progress to the next stage in the coming months — with a draft decision slated to be sent to other EU DPAs for review in the first quarter of next year. This ‘Article 60’ review process could lead either to an affirming of Ireland’s draft decision — which would then, in relatively short order, allow for a final decision to be issued (potentially before the middle of next year, judging by past inquiry timelines). However if other EU regulators raise objections to Ireland’s draft decision the inquiry would have to move to an ‘Article 65’ dispute resolution process — which could add many more months to the process before a final decision could be issued as the bloc’s regulators seek consensus. It’s not clear whether TikTok’s announcement of the privacy policy tweak relates to this overarching GDPR investigation. The incoming changes — which are due to apply from December 2 — do also include an update on how the platform collects users location information so they are not wholly focused on data transfers. But the disclosure of China staffers accessing European user data could also be a not-very-subtle attempt to pre-empt regulatory enforcement over its data transfers — and try to soften a future blow by being able to point to steps already taken to improve its transparency with European users. (Not that that is the only potential issue of regulatory concern vis-a-vis data exports, though.) A spokesman for TikTok declined to comment on whether its updated privacy policy is in any way linked to the GDPR inquiry — saying it could not do so as the inquiry remains ongoing. However in a blog post announcing the update, the company claimed the changes “include greater transparency into how we share user information outside of Europe”. That’s notable because transparency is a key principle of the GDPR — while infringements of the transparency principle can lead to stiff penalties (such as the $267M fine for Meta-owned WhatsApp last year, after an Ireland-led inquiry found a string of transparency breaches). Claiming you’re being transparent and actually being transparent are not necessarily the same thing, of course. So it’s worth noting that TikTok’s updated privacy policy appears to atomize key bits of information — such as the full list of third countries countries where employees may remotely access European users’ data and for what specific reasons — across a number of collapsable menus and hyperlinks spread throughout the policy, thereby requiring a user to click around, follow multiple links and basically hunt for relevant intel amid a larger morass of data in order to piece together a comprehensive view of what’s happening with their data (rather than clearly articulating and collating everything into a single, easy to digest view…). So, if it’s transparency TikTok is really shooting for here it still looks like it has work to do. Also still a work in progress for TikTok: A data localization project to store European users’ data in the region — which, earlier this year, it announced had been delayed again (until 2023). Thing is, if TikTok intends to continue to allow employees located in third countries with no EU adequacy agreement affirming they have essentially equivalent data protection standards as the bloc to have remote access to European users’ information then questions over the legality of its international data transfers are likely to persist. As well as China, TikTok’s privacy policy names Brazil, Malaysia, Philippines, Singapore, and the US (which has only a preliminary agreement with the EU for a fresh data transfer agreement atm) as countries where employees have remote access to European user data without the cover of an adequacy agreement — saying it’s relying on standard contractual clauses (SCCs) for these transfers. But, as the EDPB guidance on data transfers points out, each transfer to a third country must be individually assessed and some may not be possible legally, even with supplementary measures applied. So every single one of these transfers will need to stand up to regulatory scrutiny. Given so many third country transfers, TikTok’s European data localization project can only — at least for now — be considered a PR exercise. And/or an attempt to curry favor with local regulators in the hopes they take a kinder view of ongoing data exports. Unless or until it ceases data exports to third countries and finds a way to fully firewall its parent entity in China from being able to access any European users’ data in the clear. TikTok’s spokesman declined to comment on any future plans it may have to further adapt its data transfers in light of these challenges but he pointed back to its blog post — which describes its approach to data governance in Europe as being “centred on limiting the number of employees with access to European user data, minimising data flows outside of the region, and storing European user data locally”. TikTok’s wider problem is that it’s facing dialled up regulatory scrutiny across the Western world more generally as a result of security concerns attached to the Chinese state’s ability to gain access to data commercial platforms/services hold on their users — with national security laws in its home country overriding the usual standard contractual protections. Its platform