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Trump backs proposed deal to keep TikTok operating in US

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Trump backs proposed deal to keep TikTok operating in US

NEW YORK (AP) — President Donald Trump said Saturday he’s given his “blessing” to a proposed deal that would see the popular video-sharing app TikTok partner with Oracle and Walmart and form a U.S. company.

Trump has targeted Chinese-owned TikTok for national security and data privacy concerns in the latest flashpoint in the rising tensions between Washington and Beijing. The president’s support for a deal comes just a day after the Commerce Department announced restrictions that if put in place could eventually make it nearly impossible for TikTok’s legions of younger fans to use the app.

Trump said if completed the deal would create a new company likely to be based in Texas.

“I have given the deal my blessing,” he said. “If they get it done, that’s great. If they don’t, that’s OK too.”

Trump said the new company will be hiring at least 25,000 people and making a $5 billion contribution to a fund dedicated to education for Americans. “That’s their contribution that I’ve been asking for,” he said.

TikTok said Oracle and Walmart could acquire up to a cumulative 20% stake in the new company in a financing round to be held before an initial public offering of stock, which Walmart said could happen within the next year. Oracle’s stake would be 12.5%, and Walmart’s would be 7.5%, the companies said in separate statements.

The deal will make Oracle responsible for hosting all TikTok’s U.S. user data and securing computer systems to ensure U.S. national security requirements are satisfied. Walmart said it will provide its ecommerce, fulfillment, payments and other services to the new company.

“We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the U.S. administration and settle questions around TikTok’s future in the U.S.,” TikTok said in a statement.

Trump has been demanding that the U.S. operations of TikTok be sold to a U.S. company or else be shut down. He’s also been targeting WeChat, another Chinese-owned app.

The administration contends that the user data collected by the two apps could be shared with the Chinese government. On Saturday, Trump said the U.S.-based TikTok “will have nothing to do with China.” TikTok says it has 100 million U.S. users.

On Friday, the U.S. Commerce Department said it would bar TikTok from U.S. app stores as of late Sunday. Further restrictions that would prevent TikTok from accessing essential internet services in the country would go into effect on Nov. 12. Commerce said Saturday that it will delay the barring of TikTok from U.S. app stores until Sept. 27 at 11:59 p.m.

Commerce is imposing similar restrictions on WeChat, although all of the restrictions on that app are set to go into effect Sunday night at 11:59 p.m.

Earlier Saturday, WeChat users asked a U.S. judge to block the government’s actions, saying they would restrict free speech. WeChat is an all-in-one app with instant-messaging, social media and other communication tools. The U.S. government argued that it is not restricting free speech because WeChat users still “are free to speak on alternative platforms that do not pose a national security threat.”

U.S. Magistrate Judge Laurel Beeler asked lawyers for the government and WeChat users whether the prohibitions would cripple WeChat as soon as the clock ticked from Sunday night into Monday morning without a resolution. An attorney for the government said they would likely lead to a “degradation” of WeChat over time.

Judge Beeler did not rule immediately on the motion.

WeChat has millions of U.S. users who rely on the app to stay in touch and conduct business with people and companies in China and around the world. In court filings, the founder of the Mental Health Association for Chinese Communities, who is a U.S. citizen in California, said that the group’s primary tool to reach out and provide services to Chinese Americans is WeChat.

“Since many of the Chinese community members we serve are not fluent in English, WeChat is the only online tool that they rely on,” Elaine Peng said.

The Trump administration’s aggressive tactics are part of its latest attempt to counter the influence of China, a rising economic superpower. Since taking office in 2017, Trump has waged a trade war with China, blocked mergers involving Chinese companies and stifled the business of Chinese firms like Huawei, a maker of phones and telecom equipment.

China-backed hackers, meanwhile, have been blamed for data breaches of U.S. federal databases and the credit agency Equifax, and the Chinese government strictly limits what U.S. tech companies can do in China.

China’s ministry of commerce condemned the U.S. moves and urged it to stop what it called bullying behavior. It also said China may take “necessary measures” to protect Chinese companies.

The U.S. Treasury Department said Saturday that TikTok’s deal still needs to close with Oracle and Walmart, and it also needs documentation and conditions to be approved by the Committee on Foreign Investment in the United States.

That, of course, also leaves the potential for more roller coasters of emotion for TikTok users, such as Haley Hoffman Smith, a 24-year-old who moved to Manhattan this year to pursue her dream of becoming a talk-show host. She said she had just hit 100,000 followers on TikTok and was crushed on Friday to hear it may be headed for a shutdown.

“TikTok is an inextricable part of my dream chasing story,” she said, “and to lose it forever would not only be an inconvenient setback, but an absolute heartbreak.”

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By STAN CHOE AP Business Writer.
AP Business Writers Tali Arbel, Matt O’Brien and Barbara Ortutay contributed.

We’re a diverse group of industry professionals from all corners of the world. Our desire is to provide a high-quality telecoms publication that caters to an international market, offering the latest and most relevant telecoms information to businesses, entrepreneurs and enthusiasts.

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Facebook demands academics disable ad-targeting data tool

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Academics, journalists and First Amendment lawyers are rallying behind New York University researchers in a showdown with Facebook over its demand that they halt the collection of data showing who is being micro-targeted by political ads on the world’s dominant social media platform.

The researchers say the disputed tool is vital to understanding how Facebook has been used as a conduit for disinformation and manipulation.

In an Oct. 16 letter to the researchers, a Facebook executive demanded they disable a special plug-in for Chrome and Firefox browsers used by 6,500 volunteers across the United States and delete the data obtained. The plug-in lets researchers see which ads are shown to each volunteer; Facebook lets advertisers tailor ads based on specific demographics that go far beyond race, age, gender and political preference.

The executive, Allison Hendrix, said the tool violates Facebook rules prohibiting automated bulk collection of data from the site. Her letter threatened “additional enforcement action” if the takedown was not effected by Nov. 30.

Company spokesman Joe Osborne said in an emailed statement Saturday that Facebook “informed NYU months ago that moving forward with a project to scrape people’s Facebook information would violate our terms.” The company has long claimed protecting user privacy is its main concern, though NYU researchers say their tool is programmed so the data collected from participating volunteers is anonymous.

The outcry over Facebook’s threat was immediate after The Wall Street Journal first reported the news Friday considering the valuable insights the “Ad Observer” tool provides. It has been used since its September launch by local reporters from Wisconsin to Utah to Florida to write about the Nov. 3 presidential election.

“That Facebook is trying to shut down a tool crucial to exposing disinformation in the run up to one of the most consequential elections in U.S. history is alarming,” said Ramya Krishnan, an attorney with the Knight First Amendment Institute at Columbia University, which is representing the researchers. “The public has a right to know what political ads are being run and how they are being targeted. Facebook shouldn’t be allowed to be the gatekeeper to information necessary to safeguard our democracy. “

“The NYU Ad Observatory is the only window researchers have to see microtargeting information about political ads on Facebook,” Julia Angwin, editor of the data-centric investigative tech news website The Markup, tweet in disappointment.

The tool lets researchers see how some Facebook advertisers use data gathered by the company to profile citizens “and send them misinformation about candidates and policies that are designed to influence or even suppress their vote,” Damon McCoy, an NYU professor involved in the project, said in a statement.

After an uproar over its lack of transparency on political ads Facebook ran ahead of the 2016 election, a sharp contrast to how ads are regulated on traditional media, the company created an ad archive that includes details such as who paid for an ad and when it ran. But Facebook does not share information about who gets served the ad.

The company has resisted allowing researchers access to the platform, where right-wing content has consistently been trending in recent weeks. Last year, more than 200 researchers signed a letter to Facebook calling on it to lift restrictions on public-interest research and journalism that would permit automated digital collection of data from the platform.

By FRANK BAJAK AP Technology Writer – BOSTON (AP).

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Huawei sales up, but growth slows under virus, US pressure

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Chinese tech giant Huawei, one of the biggest makers of smartphones and switching equipment, said Friday its revenue rose 9.9% in the first nine months of this year, but growth decelerated in the face of U.S. sanctions and the coronavirus pandemic.

Huawei Technologies Ltd. gave no sales figure for the most recent quarter ending in September, but growth for the first three quarters was down from the 13.1% reported for the first half of the year.

Huawei is struggling with U.S. sanctions that cut off its access to most American components in a feud with Beijing over technology and security. The White House says Huawei is a threat and might facilitate Chinese spying, which the company denies.

Washington also is tightening curbs on access to U.S. markets or technology for other Chinese tech companies including telecom equipment maker ZTE Corp., video service TikTok and messaging app WeChat.

The conflict has fueled fears the global market might be dividing into competing U.S. and Chinese technology spheres with incompatible standards. Industry analysts warn that would slow down innovation and raise costs.

Executives have warned Huawei’s smartphone and network equipment sales would be affected. The company has launched smartphones based on its own chips and other components and says it is removing U.S. technology from its products.

On Thursday, the company unveiled its latest smartphone, the Mate 40, based on Kirin 9000 chips developed by Huawei.

Sales in the first nine months of 2020 rose to 671.3 billion yuan ($100.4 billion), Huawei reported. It said net profit was 8%, down from the first half’s 9.2% margin.

The company gave no details of its smartphone shipments. Sales outside China have weakened because its handsets no longer come preloaded with Google’s popular music, maps and other features. But sales in China, where Huawei phones already used local alternatives, have grown sharply.

Huawei’s global market share in smartphones rose to 19.6% in the three months ending in June, up from 17.7% a year earlier, according to Canalys. That was driven by strength in its home market, where Huawei had a 51% market share and sales rose 32% to 14.5 million handsets.

Huawei is owned by its Chinese employees who make up about 60% of its global workforce of 194,000. It began reporting financial results a decade ago in an attempt to appear more transparent and mollify foreign security fears.

BEIJING (AP) — By JOE McDONALD AP Business Writer.

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Tesla ‘full self-driving’ vehicles can’t drive themselves

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Earlier this week, Tesla sent out its “full self-driving” software to a small group of owners who will test it on public roads. But buried on its website is a disclaimer that the $8,000 system doesn’t make the vehicles autonomous and drivers still have to supervise it.

The conflicting messages have experts in the field accusing Tesla of deceptive, irresponsible marketing that could make the roads more dangerous as the system is rolled out to as many as 1 million electric vehicle drivers by the end of the year.

“This is actively misleading people about the capabilities of the system, based on the information I’ve seen about it,” said Steven Shladover, a research engineer at the University of California, Berkeley, who has studied autonomous driving for 40 years. “It is a very limited functionality that still requires constant driver supervision.”

On a conference call Wednesday, Musk told industry analysts that the company is starting full self-driving slowly and cautiously “because the world is a complex and messy place.” It plans to add drivers this weekend and hopes to have a wider release by the end of the year. He referred to having a million vehicles “providing feedback” on situations that can’t be anticipated.

The company hasn’t identified the drivers or said where they are located. Messages were left Thursday seeking comment from Tesla.

The National Highway Traffic Safety Administration, which regulates automakers, says it will monitor the Teslas closely “and will not hesitate to take action to protect the public against unreasonable risks to safety.”

The agency says in a statement that it has been briefed on Tesla’s system, which it considers to be an expansion of driver assistance software, which requires human supervision.

“No vehicle available for purchase today is capable of driving itself,” the statement said.

On its website, Tesla touts in large font its full self-driving capability. In smaller font, it warns: “The currently enabled features require active driver supervision and do not make the vehicle autonomous. The activation and use of these features are dependent on achieving reliability far in excess of human drivers as demonstrated by billions of miles of experience, as well as regulatory approval, which may take longer in some jurisdictions.”

Even before using the term “full self-driving,” Tesla named its driver-assist system “Autopilot.” Many drivers relied on it too much and checked out, resulting in at least three U.S. deaths. The National Transportation Safety Board faulted Tesla in those fatal crashes for letting drivers avoid paying attention and failing to limit where Autopilot can be used.

Board members, who have no regulatory powers, have said they are frustrated that safety recommendations have been ignored by Tesla and NHTSA.

Bryant Walker Smith, a University of South Carolina law professor who studies autonomous vehicles, said it was bad enough that Tesla was using the term “Autopilot” to describe its system but elevating it to “full self-driving” is even worse.

“That leaves the domain of the misleading and irresponsible to something that could be called fraudulent,” Walker Smith said.

The Society of Automotive Engineers, or SAE, has developed five levels to describe the functions of autonomous vehicles. In levels zero through two, humans are driving the cars and supervising partially automated functions. In levels three through five, the vehicles are driving, with level five describing a vehicle being driven under all traffic and weather conditions.

The term “full self-driving” means there is no driver other than the vehicle itself, indicating that it would be appropriate to put no one in the vehicle, Walker Smith said.

Musk also said on Wednesday that Tesla would focus on setting up a robotaxi system where one person could manage a fleet of 10 self-driving cars in a ride hailing system.

“It wouldn’t be very difficult, but we’re going to just be focused on just having an autonomous network that has sort of elements of Uber, Lyft, Airbnb,” he said.

Tesla is among 60 companies with permits to operate autonomous vehicles with human backup drivers in California, the No. 1 state for Tesla sales. The companies are required to file reports with regulators documenting when the robotic system experiences a problem that requires the driver to take control – a mandate that could entangle the owners of Tesla vehicles in red tape.

Before Tesla is able to put fully self-driving vehicles on California roads, it will have to get another permit from state regulators. Only five companies, including Google spin-off Waymo and General Motors’ Cruise subsidiary, have obtained those permits.

The California Department of Motor Vehicles didn’t immediately respond to questions about Tesla’s latest plans for robotic cars.

NHTSA, which has shied away from imposing regulations for fear of stifling safety innovation, says that every state holds drivers accountable for the safe operation of their vehicles.

Walker Smith argues that the agency is placing too much of the responsibility on Tesla drivers when it should be asking what automakers are going to do to make sure the vehicles are safe. At the same time, he says that testing the system with vehicle drivers could be beneficial and speed adoption of autonomous vehicles.

Thursday afternoon, Musk was clearly trying to sell the full self-driving software. He wrote on Twitter that the price of “FSD beta” will rise by $2,000 on Monday.


DETROIT (AP) — By TOM KRISHER AP Auto Writer

AP Technology Writer Michael Liedtke contributed from San Ramon, California.

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