U.S. Congress Passes Bill that Could Ban TikTok
State of Play: The U.S. Congress has passed a bill aimed at forcing the sale of TikTok due to concerns that the Chinese government could access American users’ data, a claim TikTok has contested. President Biden has indicated he will sign the bill into law, which would give TikTok's parent company, ByteDance, approximately nine months to divest from TikTok or face a ban in the U.S., with the possibility of a 90-day extension.
For years, U.S. officials have scrutinized TikTok's relationship with its parent company, ByteDance. TikTok has attempted to address these concerns through initiatives like Project Texas, which involves partnering with Oracle to secure U.S. data. However, negotiations with the U.S. government have stalled, prompting lawmakers to push for legislation that would grant the executive branch the authority to restrict the platform.
Why it Matters: This move presents an opportunity for U.S. tech companies like Meta, Google and Snap, which have been competing with TikTok for market share. Meta's previous efforts to rival TikTok, including launching Reels, have fallen short. A ban could potentially redirect TikTok's users and ad revenue to these companies, reinforcing their market positions amidst broader antitrust scrutiny. Critics suggest broader tech regulation is needed rather than targeting one company.
Saudi Arabia Makes Multi-Billion Dollar Investment to Become a Major Gaming Hub in the Middle East
State of Play: Saudi Arabia is setting the stage to become a dominant force in the global gaming industry, with a multi-billion-dollar investment aimed at establishing itself as the central gaming hub of the Middle East. The nation's commitment is evident in its partnerships with heavyweight entities like Tencent and Gamers Hub Media Events. These collaborations are intended to foster the local gaming ecosystem, from infrastructure to talent development. The upcoming Esports World Cup 2024 in Riyadh and a dedicated gaming district in the entertainment mega-city of Qiddiya highlight the kingdom's ambitious plans.
Why it Matters: Saudi Arabia's aggressive investment in the gaming sector isn't just about diversifying its economy; it's about capturing a significant share of a burgeoning global market. With over 23 million gamers, constituting 67% of its population, Saudi Arabia is poised to leverage its vast, tech-savvy youth demographic. The kingdom's pivot towards gaming signals a shift in cultural and economic priorities that could reshape the Middle East's digital landscape.
TikTok Challenges Instagram's Turf with New Photo-Sharing App
State of Play: TikTok is poised to expand its social media empire by venturing into the realm of photo-sharing, directly rivalling Instagram's core functionality (and mirroring a move from Instagram a few years ago when it adopted TikTok’s video sharing model in Reels). TikTok is looking to introduce this via Notes, a separate app, diverging from its typical strategy of integrating new features within its existing app. Some users have already been notified about their content being automatically shared to TikTok Notes unless they opt out.
Why it Matters: TikTok's foray into photo-sharing signifies a strategic pivot at a time when the company faces legislative challenges in the United States. By creating a distinct app for photos, TikTok is not only attempting to capture a market dominated by Instagram but also diversifying its offering amidst uncertain regulatory futures.
The development underscores the intensifying battle for user engagement across platforms, as social media giants increasingly seek to offer users everything in one ecosystem, if not in one place. As community and connections increasingly play a smaller role in social media engagement, a development to watch out for in the long term is whether users start limiting their online presence to a single channel.
Google Plans to ‘Destroy’ Google Chrome Incognito Browsing Activity
State of Play: Google has recently agreed to a significant settlement that involves the deletion of "billions of data records" collected from users under the guise of Incognito Mode in Chrome, committing to block third-party cookies in Incognito mode for 3 years and making explicit that Incognito is not incognito after all. This follows a class action lawsuit that challenged the company's data collection practices, in particular collecting user data even when they browse in Incognito.
Digital Insights previously covered Google's announcing a winding down of third-party cookies.
Why it Matters: The unravelling myth of Incognito Mode's privacy protections signals a pivotal moment for digital privacy and the responsibilities of tech giants. While Google has agreed to a number of commitments, some of its activities will remain unknown. As the narrative around data privacy shifts, there is an increasing demand for transparency and education to prevent users from being lulled into a false sense of security. Google will want to remain ahead of user concerns as much as possible, while protecting its business model, which is highly reliant on being able to connect advertisers with audiences.
US and UK Join Forces Over AI
State of Play: The US and UK governments have formalised a partnership to address Artificial Intelligence safety, signing a memorandum of understanding to collaborate on AI model testing. This initiative follows an AI safety summit and aims to mitigate potential risks associated with AI technologies.
Why it Matters: This bilateral agreement reflects a growing recognition of the need for stringent AI safety measures. It follows from the UK’s AI Summit at Bletchley Park and may point to a model for future bilateral agreements around the technology.
Blue Checkmarks Bestowed Unexpectedly on X Users
State of Play: Twitter/X has reinstated the complimentary blue verification checkmarks for users with over 2,500 verified subscriber followers, backtracking on his previous policy that required payment for the status symbol. This shift came as a surprise to many users who had lost their blue checks during Musk's overhaul of the verification system, which aimed to democratise the feature through a paid subscription service.
Why it Matters: This policy change has led to a mix of responses, with some users actively clarifying that they did not purchase the verification but had it imposed on them. The blue check, once a symbol of influence and authenticity, has now become a point of contention. It used to help identify public figures and reduce misinformation. However, in the current state, a blue check can indicate a range of possibilities, from a desire for status or premium features to being a frequent target for impersonation.
