July 2011

Facebook data privacy questioned by Denmark, Finland, Norway and Sweden

Facebook has some explaining to do in Denmark, Finland, Norway and Sweden.

Data protection agencies in those countries want the Palo Alto company to detail what it does with the information it collects from its more than 750 million users. "This is a common action to obtain better knowledge of how personal information is handled by the world's largest social network," said Hans-Olof Lindblom, the Swedish Data Inspection Board's chief attorney. A list of 45 questions regarding data collection and privacy has been sent to Facebook by Norway's data protection agency on behalf of respective authorities in the four Nordic countries. The questions cover what Facebook does with photos uploaded to its network, "the consequences of clicking the 'like' button to comment on posted items, and the sharing of data that can help determine a user's name and address with third parties." The four nations also want to know what Facebook does with data from a user identifying religious beliefs and sexual preferences or when he or she writes on a friend's "Facebook wall."

Sen Rockefeller calls for News Corp probe

Sen Jay Rockefeller (D-WV), Chairman of the Senate Commerce Committee, said the US should investigate whether News Corp papers had broken US laws following reports that victims of the September 11 attacks may have had their phones hacked by detectives working for the News of the World. “The reported hacking by News Corporation newspapers against a range of individuals – including children – is offensive and a serious breach of journalistic ethics,” said Chairman Rockefeller. “This raises serious questions about whether the company has broken [any] US law, and I encourage the appropriate agencies to investigate to ensure that Americans have not had their privacy violated.”

The Federal Communications Commission won’t involve itself in the U.K. probe of allegations that journalists at the now-defunct News of the World newspaper tapped phones and paid police for stories, FCC chairman Julius Genachowski said.

Britain's Press Scandal

[Commentary] The phone hacking scandal in Britain that has already brought down The News of the World and now hangs over at least two other newspapers has exposed a culture of illegal intrusions, systematic bribes to corrupt police officials and thuggish threats of damaging publicity to silence criminal investigators. It is not over yet. Hard lessons must be drawn. Investigations into criminal behavior must be taken to their conclusions, wherever they lead. Honest journalists — and they abound in England, as elsewhere — should not fear those inquiries. But there is one course of action the authorities most emphatically must not pursue: the new system of press regulation that Prime Minister David Cameron darkly hinted at last week. Now especially, British public life needs the disinfecting sunlight of a free press, not the chilling shadow of official oversight.

News Corp's widening scandal

[Commentary] The only sort of power a news organization can wield safely is the power to persuade. Every other sort — no matter how high-minded or expedient the reason for taking it up — is a kind of slow poison that twists the souls of the journalists involved and, ultimately, makes their enterprise dangerously self-interested and unaccountable.

That's the fundamental lesson to be taken from the spectacle of the Murdoch meltdown now underway in London. America's media culture has become coarser and more vulgar and politically divisive since Murdoch became a force here and began pushing U.S. journalism closer to the British model. News Corp.'s unquestioned financial success has taken other media organizations — many essentially unmoored from their own values by the stress of technological change — down these same paths. Pre-Murdoch, could we really imagine a dubious gossip website and syndicated TV program such as TMZ being regularly quoted by mainstream media? Would CNN have given license to one of its news personalities to campaign for a guilty verdict in a criminal trial — and to excoriate a jury for disagreeing with her — as it has done with Nancy Grace in the Casey Anthony trial? The seeds of Murdoch's British newspapers' abuse of trust and power were sown in a media culture whose essentials — salacious celebrity coverage, gossip, overt partisanship — have infiltrated our own under his influence. The meltdown in London ought to be a wake-up call.

News of the World: Murdoch’s media mess is a wake-up call for journalism

The demise of Rupert Murdoch’s News of the World tabloid in Britain over alleged phone hacking should be a wake-up call for journalism.

Journalists – and those who read on paper, view on a screen, or listen on radio or TV, to what they produce – should reassess the function of journalism. Is it to make money? Some owners of newspapers have made a lot of it over the years, but with the advent of the Internet and new technology, those days are gone. Is it for media owners and managers to manipulate politicians? It should not be. Is it for titillation, or to capitalize on sensationalism? On prurience? On trivia? Is it to worship celebrity? To highlight depravity and the worst of mankind’s failings? I think not.

Surely journalism at its best – and by whatever means of delivery – is to inform about, and objectively illuminate, the significant events of our times that citizens need to know about, shedding light on dark corners where necessary. Weekly and small daily newspapers do yeoman work keeping their readers informed about local government, taxes, high school sports, and all the detail of community life. Larger newspapers and other, electronic media cover news of the nation and the world that is relevant and significant.

Pushing for faster Internet connection with fiber

[Commentary] When it comes to speed, the United States is to the Internet what Jamaica is to bobsledding. We rank a shameful 25th around the globe. Even the tech Shangri-La of San Francisco isn't much better, with average download speeds in some neighborhoods that are one-tenth of what you'd get in South Korea. The good news is that there are some people pushing feverishly to catch up; the bad news is that it's a very bumpy track.

Two outspoken advocates for the local cause are Dana Sniezko, a nonprofit Web developer and technology activist who started the informative site SFFiber.info; and Alex Menendez, co-founder of MonkeyBrains, a San Francisco Internet service provider that's developed interesting (though ultimately limited) ways to boost Internet speeds in patches of the city. They're both lobbying San Francisco officials to make it easier for ordinary companies to lay fiber or install their own ultra-fast cables throughout the city. They see it as the best bet for loosening the grip on local Internet service that AT&T and Comcast currently hold, and leapfrogging from aging DSL and cable technology to direct fiber connections to the home.

Newspapers to give away Android tablets to subscribers

Philadelphia's two major newspapers announced Monday that they will give free Android tablet computers to paid digital subscribers as part of a new venture designed to shore up readership and revenue nearly a year after the publications emerged from bankruptcy. The pilot project, scheduled for launch in late August, will provide about 2,000 tablets to customers who buy long-term subscriptions to The Philadelphia Inquirer or Philadelphia Daily News, according to publisher Greg Osberg. It's the first time a major U.S. media company will bundle its content with a device, said Osberg, who is also the CEO of Philadelphia Media Network, which owns the papers and their joint website.

LightSquared's promise dims

LightSquared was the nation’s great wireless hope before its bid to win regulatory approval hit static in Washington. The startup seemingly had it all: hot new technology to speed smartphone connections, a billionaire backer, big-name partners and a White House that made spreading wireless Internet a national goal. These days, the company that’s received more than $5 billion in investments has been running a political gauntlet inside the Beltway.

“You usually solve interference issues through good engineering, not the political process,” LightSquared's CEO Sanjiv Ahuja told POLITICO. He’s still hopeful “good technology and good science will prevail.” The makers of GPS devices have launched a lobbying effort to convince lawmakers and regulators that LightSquared’s signals will disrupt their services — and federal agencies that rely on GPS systems to monitor air traffic and control military weapons also have raised interference alarms. The FCC and Commerce Department, meanwhile, are reviewing LightSquared’s proposal to mitigate GPS disruption, and officials maintain they won't green light the technology until interference issues are resolved. As LightSquared struggles to overcome regulatory and political hurdles, it raises questions about whether the barriers for new entrants into the well-established wireless landscape are simply too high.

If LightSquared, which is financed by big-shot billionaire Philip Falcone, of Harbinger Capital, can’t break into the market — who can?

How Much Is a User Worth?

Internet companies are notoriously difficult to value, as investors learned in the dot-com crash 11 years ago. But since the "Web 2.0" companies fueling this year's Internet IPOs rely upon having a reliable group of engaged users, they do offer at least one telling metric: the amount of money each user is worth. That's why venture capitalists evaluating such businesses in their early stages often examine how much revenue a company is generating per user. Bijan Sabet, a venture capitalist at Spark Capital, which has invested in several Internet companies, including Twitter, FourSquare, and Tumblr, says his firm often considers $2 of annual revenue per user to be an important target threshold for startups. By that measure, several of today's new Web companies show genuine promise.

Skype: The inside story of the boffo $8.5 billion deal

How executive shuffles, product changes, and a delayed IPO paid off for a couple of private equity firms.