December 2016

EU charges Facebook with giving 'misleading' information over WhatsApp

The European Commission (EC) has filed charges against Facebook for providing “misleading” information in the run-up to the social network’s acquisition of messaging service WhatsApp after its data-sharing change in August.

The charges will not have an affect on the approval of the $22 billion merger and is being treated completely separately to other European cases against Facebook, but could lead to Facebook being fined up to 1% of its global turnover in 2014 when the merger was approved, which was greater than $10 billion for the first time. The European competition commissioner, Margrethe Vestager, said, “Our timely and effective review of mergers depends on the accuracy of the information provided by the companies involved. In this specific case, the commission’s preliminary view is that Facebook gave us incorrect or misleading information during the investigation into its acquisition of WhatsApp. Facebook now has the opportunity to respond.” The commission said that Facebook informed regulators that it would not be able to perform automated matching between user-held Facebook accounts and WhatsApp accounts. However, Facebook’s privacy policy change for WhatsApp in August, for which the EC was notified in January, specifically enabled automated matching and data sharing after technical changes, including one for Apple and its iOS, allowed the matching of the majority of accounts not using a phone number with Facebook.''

Tribune Sells Gracenote to Nielsen for $560 Million

Tribune Media Co agreed to sell Gracenote, which provides media and entertainment metadata, to Nielsen for $560 million.

Gracenote provides reference information for more than 12 million movie and television listings and 200 million music tracks. It is the industry standard for automatic content recognition technology. Combining Gracenote with its measurement framework, Nielsen expects to be able to provide clients with deeper analytics on consumer behavior and offer a better view of audience engagements. “Gracenote’s metadata and content recognition technology fuels the interfaces of the major video, music and in-car infotainment systems that consumers engage with every day. This acquisition provides Nielsen with a significant asset in our mission of measuring and understanding consumer behavior,” said Karthik Rao, president, Expanded Verticals at Nielsen. Tribune acquired Gracenote in 2014. Tribune Media expects to receive approximately $500 million in after-tax proceeds from the transaction, the majority of which will be used to repay existing debt with the remainder to be reinvested in the business. The sale is expected to close during the first quarter of 2017.

Russian Cyberforgers Use Fake Web Users to Steal Real Ad Revenue

In a twist on the peddling of fake news to real people, researchers say that a Russian cyberforgery ring has created more than half a million fake internet users and 250,000 fake websites to trick advertisers into collectively paying as much as $5 million a day for video ads that are never watched.

The fraud, which began in September and is still going on, represents a new level of sophistication among criminals who seek to profit by using bots — computer programs that pretend to be people — to cheat advertisers. “We think that nothing has approached this operation in terms of profitability,” said Michael Tiffany, a co-founder and the chief executive of White Ops, the ad-focused computer security firm that publicly disclosed the fraud in a report. “Our adversaries are bringing whole new levels of innovation to ad fraud.” The thieves impersonated more than 6,100 news and content publishers, stealing advertising revenue that marketers intended to run on those sites, White Ops said. The spoofed outlets include a who’s who of the web: video-laden sites like Fox News and CBS Sports, large news organizations like The New York Times and The Wall Street Journal, major content platforms like Facebook and Yahoo and niche sites like Allrecipes.com and AccuWeather. Although the main targets were in the United States, news organizations in other countries were also affected. “It will be a big shock to all of these publishers that someone was selling inventory supposedly on their sites,” Tiffany said.

The US has a long history of hacking other democracies

[Commentary] Why do democratic governments so often engage in violent covert actions? The United States is roiled by controversy over Russia’s broad covert operation to undermine the legitimacy of the 2016 presidential election and Western democracy in general. But the US government has interfered in other democracies’ decisions with violent clandestine operations that go back generations. We examined unclassified Central Intelligence Agency documents and historical academic research on US interventions to identify 27 US clandestine operations carried out between 1949 and 2000. Most US “secret wars” were against other democratic states.

[Mariya Y. Omelicheva is associate professor in the department of political science at the University of Kansas. Christian Crandall is professor in the department of psychology at the University of Kansas.Ryan Beasley is senior lecturer in the school of international relations at St. Andrews University.]

Still No FCC Decision on Nexstar-Media General

In the "no news is not good news for either Nexstar or Media General" department, the Federal Communications Commission's Media Bureau has yet to act on the waiver request by the two broadcasters that the commission make a decision on their proposed $4.6 billion merger, apparently.

The FCC's informal shot clock on the deal—it shoots for 180 days—was at day 306 at press time. As the days wind down to the holidays, it looks unlikely the waiver will be ruled on before the end of 2016. The companies extended some deadlines for the deal completion a couple of weeks ago amidst buzz that the FCC might be ready to both rule on the waiver and decide on the deal, which could come simultaneously. But that did not materialize. The FCC signaled early on that it would not make decisions on station license transfers that could implicate spectrum auction participants—this deal qualifies—while the auction was still going on.

Poll: 49 percent of Trump voters believe it should be easier to sue the media

Around half of self-identified Donald Trump voters said in a survey that courts should make it easier for public figures to sue the media.

In the Glover Park Group poll, conducted by Morning Consult, 49 percent of respondents said that courts should make it easier for public figures to sue the news media for unfavorable or false coverage. Twenty-nine percent of respondents said they were opposed to the idea, and 22 percent said they were unsure. Asked about federal spending on public media, 38 percent of respondents said that the current amount should be cut, while 30 percent of respondents said federal spending for public media should remain the same. Twenty-three percent said it should increase, and 8 percent said they were unsure. The survey asked 2,000 self-identified Trump voters to discuss their policy views on a range of issues, including views on the news media.

President-elect Trump doesn’t miss a beat as Twitter’s Media Critic in Chief

[Commentary] President-elect Donald Trump operates his Twitter feed as a virtual Statler and Waldorf, reigning judgment on the media and individual journalists like a Muppet in the rafters. Trumpian tweets often appear soon after a negative story has run about him or his business, especially in the case of cable news, hinting at the president-elect’s viewing habits (lots of CNN). Occasionally, Trump dispenses plaudits for a piece, but he is more likely to hiss and boo, heckling journalists from his perch. American presidents have long made their media preferences known. Richard Nixon spent Sunday afternoons watching the NFL; Barack Obama snagged advanced screeners of HBO’s Game of Thrones. But never have we had a leader so interested—some might say obsessed—with journalistic critiques. At CJR, we’ve combed through Trump’s 189 (and counting…) tweets since the election, focusing on those that highlight his touchy takes on the press.

2016 Technology Trends among Mid-Life and Older Americans

As Americans age 50 and older continue to grow their adoption of personal technology at an impressive rate, this report tracks technology attitudes and behaviors among this group over time. Highlights include device ownership, online activities, attitudes toward privacy, and the use of technology to stay connected with family and friends.

Device Adoption: Portable device adoption such as smartphones and tablets continues to grow among Americans age 50+, while adoption of traditional computing has flattened or declined. Over three quarters of adults 50+ (76%) own some type of computing device (desktop, laptop, or tablet).
Online Activities: E-mail and surfing the internet top the list of activities done on a computer or tablet by Americans age 50+. Among those who own such devices, top 5 activities are sending emails (82%), surfing the internet (81%), getting news (77%), getting directions or traffic info (72%), and making purchases (70%).

Preaching the Gospel of Diversity, but Not Following It

[Commentary] Only two of the 20-plus reporters who covered the presidential campaign for The New York Times were black. None were Latino or Asian. That’s less diversity than you’ll find in Donald Trump’s cabinet thus far. Of The Times’s newly named White House team, all six are white, as is most everyone in the Washington bureau. I can tell diversity isn’t a priority here by looking at what is. Think digital transition or global expansion or subscriber growth or visual innovation. Those are mandates that really power up the engines. Diversity is not at that level, at least yet. This issue has challenged most every newsroom manager, myself included. The newsroom I came from, The Washington Post, is quite diverse, but its leadership is heavily white and male. At The Times, on the other hand, people of color seem shut out of all sorts of coveted jobs: the top digital strategists, the top managers, the precious ranks of cultural critics, the White House press corps, the opinion columnists, the national politics jobs — all are overwhelmingly white.