Data remains a vital part of the marketing world

“One of the biggest things that brands struggle with is figuring out attribution, and how you continue to spend money even though you may have lost some signal into the platform,” says Greg Gillman, chief revenue officer of LA-based performance marketing agency MuteSix, “If Facebook skews too heavily, and Google is on last click, then sometimes it looks like things are never working. To help companies make informed business decisions, we are building statistical models that show information at higher-than-the-platform level.”

Another week, another growth recap. TechCrunch has been busy working to expand not only our staff editorial content, like Anna Heim’s interview with MuteSix this week, we’re also working on increasing our guest posts as well for growth marketing. In this recap, we have an article from guest columnist Jonathan Metrick, an episode of the Equity podcast that features Metrick, TechCrunch Managing Editor Danny Crichton and TechCrunch Senior Editor Mary Ann Azevedo.

Help TechCrunch find the best growth marketers for startups.

Provide a recommendation in this quick survey and we’ll share the results with everybody.

If you didn’t already hear, we’re giving away one free ticket to Disrupt through the Experts survey. Check out the schedule for Disrupt, and read on to learn about the giveaway details:

  • Have you already submitted a recommendation? That’s great — we’re counting all previous survey submissions as an entry for the Disrupt ticket.
  • We’ll also enter the next 100 survey submissions into the giveaway.
  • Do you want to submit 10 recommendations to increase your chance at winning? We love the enthusiasm, but we ask that you only submit one recommendation for each marketer that you’ve worked with.
  • Don’t know what to say in your recommendation? Start with what traits they had, what they did to help your company, how their work affected your business and go from there!
  • We manually go through all entries, so please don’t copy and paste the same response multiple times.
  • Have a question about the giveaway? Send us an email at [email protected].

Marketer: Kevin Miller, GR0
Recommended by: Leeann Schudel, The Word Counter
Testimonial: “Super detailed analysis of the space and what keywords to target that would move the needle the most. There is a full dedicated SEO team that communicates weekly at the minimum and provides in-depth analysis. They are very transparent with their strategies and explain all moves they are making on their end and how it will benefit our company. Super easy and flexible to work with, aren’t stingy on deliverables and are always there as a consultant.”

Marketer: Subfolder
Recommended by: Hayley Sonntag, Podium
Testimonial: “They delivered an end-to-end content marketing program that drives 150,000+ organic website visitors every month.”

Marketer: Jordan Banafsheha, icepop
Recommended by: Mini Dreamers
Testimonial: “He had experience in e-commerce and impressed us on our first call with how detailed and thorough he was with his plan.”

Marketer: Mike Le, CB/I Digital
Recommended by: Tony Drockton, Hammitt
Testimonial: “In the two years of conversations I’ve only spoken to a few people that are so analytical and data-driven. His unique in-house algorithms to scale spend have allowed us to maintain the hypergrowth (60%) that we’re on.”

Marketer: Visiture
Recommended by: Stephanie Bregman, Manly Bands
Testimonial: “I have worked with Visiture in the past. They have great attention to detail and really listen to their clients. Their ability to write great optimized content and perform outreach is what makes them stand out from other agencies and helped grow our ranked keywords faster than any other agency could. They have also helped us with our email flows and strategy and have been a great partner.”

Marketer: Tuff
Recommended by: Luke Oehlerking, Zenernet
Testimonial: “We were looking for a team focused on marketing that can truly move the needle with measurable results. And we wanted a company that can function as an extension of our own team, which Tuff seems to do exceedingly well at!”


Performance marketing agency MuteSix bets on content and data to boost DTC e-commerce: Anna spoke with Greg Gillman from MuteSix as part of our TechCrunch Experts series. This interview dives into performance marketing, what differentiates MuteSix from other agencies and the importance of data. Gillman says, “There’s one other piece that I think is super important and usually overlooked: first-party data. We work with brands to try and acquire as much of that first-party data as possible, segment it and use it, because that’s what they’d be left with if Facebook shut off tomorrow.” Read the full interview to find out what other pieces of data MuteSix focuses on.

(Extra Crunch) Use cohort analysis to drive smarter startup growth: Jonathan Metrick’s guest column explains not only what cohort analysis is, but why it’s important — especially to startups, using Black Friday in November of 2020 as an example. Metrick says, “Savvy marketers can go further and leverage cohort analysis to remove biases hidden within averages or blended metrics. One way to do this is segmenting ARPU by paid and organic channels, which allows you to gauge the sustainability of your customer growth.”

TikTok, influencers on the clock: Metrick joined the Equity crew to lend his expertise about growth marketing, especially in the ever-changing COVID-19 world. This episode is a must-listen.

Tell us who your favorite startup growth marketing expert to work with is by filling out our survey.

3 methodologies for automated video game highlight detection and capture

Nathan Babcock
Contributor

Nathan Babcock is a computer scientist and freelance writer in Chicago and a co-founder of automated highlight detection startup Clip It.

Benjamin Clingan
Contributor

Benjamin Clingan is a software developer specializing in Python back ends, finance, genetic neural networks and other machine learning strategies and a co-founder of automated highlight detection startup Clip It.

With the rise of livestreaming, gaming has evolved from a toy-like consumer product to a legitimate platform and medium in its own right for entertainment and competition.

Twitch’s viewer base alone has grown from 250,000 average concurrent viewers to over 3 million since its acquisition by Amazon in 2014. Competitors like Facebook Gaming and YouTube Live are following similar trajectories.

The boom in viewership has fueled an ecosystem of supporting products as today’s professional streamers push technology to its limit to increase the production value of their content and automate repetitive aspects of the video production cycle.

The largest streamers hire teams of video editors and social media managers, but growing and part-time streamers struggle to do this themselves or come up with the money to outsource it.

The online streaming game is a grind, with full-time creators putting in eight- if not 12-hour performances on a daily basis. In a bid to capture valuable viewer attention, 24-hour marathon streams are not uncommon either.

However, these hours in front of the camera and keyboard are only half of the streaming grind. Maintaining a constant presence on social media and YouTube fuels the growth of the stream channel and attracts more viewers to catch a stream live, where they may purchase monthly subscriptions, donate and watch ads.

Distilling the most impactful five to 10 minutes of content out of eight or more hours of raw video becomes a non-trivial time commitment. At the top of the food chain, the largest streamers can hire teams of video editors and social media managers to tackle this part of the job, but growing and part-time streamers struggle to find the time to do this themselves or come up with the money to outsource it. There aren’t enough minutes in the day to carefully review all the footage on top of other life and work priorities.

Computer vision analysis of game UI

An emerging solution is to use automated tools to identify key moments in a longer broadcast. Several startups compete to dominate this emerging niche. Differences in their approaches to solving this problem are what differentiate competing solutions from each other. Many of these approaches follow a classic computer science hardware-versus-software dichotomy.

Athenascope was one of the first companies to execute on this concept at scale. Backed by $2.5 million of venture capital funding and an impressive team of Silicon Valley Big Tech alumni, Athenascope developed a computer vision system to identify highlight clips within longer recordings.

In principle, it’s not so different from how self-driving cars operate, but instead of using cameras to read nearby road signs and traffic lights, the tool captures the gamer’s screen and recognizes indicators in the game’s user interface that communicate important events happening in-game: kills and deaths, goals and saves, wins and losses.

These are the same visual cues that traditionally inform the game’s player what is happening in the game. In modern game UIs, this information is high-contrast, clear and unobscured, and typically located in predictable, fixed locations on the screen at all times. This predictability and clarity lends itself extremely well to computer vision techniques such as optical character recognition (OCR) — reading text from an image.

The stakes here are lower than self-driving cars, too, since a false positive from this system produces nothing more than a less-exciting-than-average video clip — not a car crash.

Daily Crunch: Microsoft acquires tutoring platform TakeLessons for undisclosed sum

To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here.

Hi friends!

Welcome back to the Daily Crunch — it’s September 10, 2021. Alex Wilhelm returns next week, so this is my last day as the captain of this ship. Captain of the Daily Crunch. Captain … Crunch? Oh no.

Image Credits: evemilla / Getty Images

Things I’ve learned:

  • Email newsletters are more stressful than blog posts because you can’t fix typos once they’re out (and now that I’ve mentioned it, Murphy’s law demands this newsletter will have 300% more typos ). [Ed. note: Not on my watch, Captain.]
  • I have a weird tendency to not link to my own stories in this newsletter because it feels weird? (But I’m going to today, because I’VE EARNED IT. Also because it’s my birthday. Also because it ended up being one of our top stories since the last newsletter, so I probably should.)
  • Alex is a much, much more efficient writer than I am. He gets this done in like a third of the time it takes me. This works well with my theory that, based on the amount of work he does in a day, Alex is actually three people.

Bye friends!

Greg

The TechCrunch Top 3

  • Apple will use Shazam to ID songs in DJ mixes: If a DJ mixes a bunch of songs into one big set, how do all the original artists get paid? Apple says the answer, at least for their purposes, starts with Shazam, which it bought back in 2018 for $400 million.
  • JioPhone delayed: Google and India’s Jio Platforms have been working on a phone tailored for the Indian market, intending to launch it today. Alas, that’s not going to happen. In a very last-minute announcement, Jio says that global semiconductor shortages are behind the delay, and that two more months should let them leap that hurdle.
  • Epic is shutting down Houseparty: Just two years after acquiring Houseparty for a reported $35 million, Epic says the party is over. It’ll be shutting down the video chat app in October, though bits of Houseparty DNA will remain — Fortnite’s cross-platform voice chat, for example, is based on Houseparty tech.

Startups/VC

  • Mammoth, the unicorn: Mammoth Biosciences, a biotech company co-founded by CRISPR pioneer Jennifer Doudna, has blown past the billion-dollar valuation milestone. There’s literally zero chance that I’m going to be able to properly explain what this company does in one or two sentences, so check out Emma Betuel’s writeup for the breakdown.
  • Supabase raises $30M: This one’s mine! Supabase is building an open source platform meant to automatically handle a lot of the annoying back-end work that comes with starting a new app project — the database, the API (and documentation!), etc. I’ve been hearing buzz about it constantly since it graduated from YC last year. Supabase just closed a $30 million Series A and is rolling out new features on the regular, all while being fully remote with a team distributed across the world.
  • Snyk’s massive raise: Another company is raising an absolutely massive round at a mind-blowing valuation — this time it’s Snyk, which Ron Miller describes as a “Boston-based late-stage startup that is trying to help developers deliver more secure code.” It’s raising $530 million at a valuation of $8.5 billion. Meanwhile, I’m sitting here trying my hardest not to make any ’90s Nickelodeon references.

What China’s new data privacy law means for US tech firms

China’s first data privacy laws go into effect on November 1, 2021. Will your company be in compliance?

Modeled after the EU’s GDPR, the new regulations “[introduce] perhaps the most stringent set of requirements and protections for data privacy in the world,” writes Scott W. Pink, special counsel in O’Melveny’s Data Security & Privacy practice.

In a comprehensive overview, he explains its key requirements and compliance steps for U.S.-based firms that service Chinese consumers.

“American firms doing business in China or with companies inside China will need to immediately start assessing how this new law will impact their activities,” he advises.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Big Tech Inc.

  • Microsoft buys TakeLessons: Another Microsoft acquisition! Just a few days after announcing it’s buying web-based video editor Clipchamp, MSFT announced it’s picking up TakeLessons. Based in San Diego, TakeLessons connects individual students with specialist tutors (both online and off) on topics like math, music, drawing and more. Given that Microsoft says over 100 million students use its Teams platform for school, it makes sense for it to dig a bit deeper on edtech.
  • Judge says Apple must change App Store rules: Big shift in the Epic-versus-Apple legal battle royale this morning, with the judge declaring that Apple must allow developers to offer alternative payment options beyond Apple’s own in-app purchase system. Epic CEO Tim Sweeney says it’s not enough and that the company “will fight on.”
  • Epic wants Fortnite back in the App Store in South Korea: Speaking of Epic-versus-Apple … South Korea recently passed a bill that will require Apple to allow developers to use their own payment systems. As such, Epic says it’s time for Apple to let it (and Fortnite) back on the App Store in the country. Apple says no, and that “as of now, there’s no legitimate basis for the reinstatement of their developer account.”
  • What to expect from Apple’s event next week: It’s September, which means Apple is holding a big event. What will they announce — besides, if tradition holds, a new iPhone? Brian Heater has the roundup.

TechCrunch Experts: Growth Marketing

Illustration montage based on education and knowledge in blue

Image Credits: SEAN GLADWELL (opens in a new window) / Getty Images

We’re reaching out to startup founders to tell us who they turn to when they want the most up-to-date growth marketing practices. Fill out the survey here.

Read one of the testimonials we’ve received below!

Marketer: Mike Le, CB/I Digital

Recommended by: Tony Drockton, Hammitt

Testimonial: “In the two years of conversations I’ve only spoken to a few people that are so analytical and data driven. His unique in-house algorithms to scale spend have allowed us to maintain the hypergrowth (60%) that we’re on.”

Community

Join Danny Crichton on Twitter Spaces Tuesday, September 14, at 2 p.m. PDT/5 p.m. EDT as he discusses whether remote work will make H-1B visas redundant with Sophie Alcorn, a lawyer at Alcorn Immigration Law and guest columnist for “Dear Sophie” on Extra Crunch.

Is it so bad to take money from Chinese venture funds?

Denis Kalinin
Contributor

Denis Kalinin works at venture fund Runa Capital as Asia Business development manager, devoted to connecting the Western and Asian VC worlds and bringing long-term value to both.

China is becoming a superpower in the tech industry. According to Straits Times, China is the only place in the world where it takes less than six years for a startup to become a unicorn — it takes seven years in the U.S., eight years in the U.K. and 11 years in Germany. Despite geopolitical tensions and recent amendments in CFIUS, it is hard to ignore China.

When I joined Runa Capital almost a year ago, my task was to help our portfolio companies enter the Chinese market, find the right partners and raise funding from Chinese investors. And almost on every call with our startups, colleagues from Runa or other global VCs, I heard: Is it a good idea to raise from a Chinese VC? Is it OK to co-invest with Chinese investors? I was surprised to learn that there is little research answering such questions, as there is a lack of adequate information in English about Chinese investments.

Access to the Chinese market seems to be an obvious reason to invite Chinese funds aboard, but only about 20% of Western startups with Chinese capital have operations in China.

So as a Mandarin-speaking specialist, I decided to fill this gap by conducting a study based on Chinese VC database ITjuzi (the Chinese version of Crunchbase) with the help of our powerful data science resources developed by Danil Okhlopkov.

Below, I will try to answer the following questions using statistics and a case-based approach:

  • How much do Chinese funds invest abroad?
  • What is the current trend?
  • Can Chinese investors bring any value to Western startups?
  • Who are the most active Chinese investors abroad?
  • In which areas can Chinese funds bring the most value?
  • What value can Chinese investors bring?
  • When is it better to invite a Chinese investor?

Chinese investors are interested in Western startups

After studying data from ITjuzi, we estimated that Chinese funds invested around $250 billion in 2020 (three times higher than the figure reported in Crunchbase). This figure puts Chinese VC investments only 30% lower than investments by U.S. funds, but three times that of U.K. funds and 12.5 times more than German funds.

Comparison of investment amount from different countries in 2020, $bn. Source: Crunchbase, ITjuzi

Fig. 1 — Comparison of investment from different countries in 2020, $bn. Source: Crunchbase, ITjuzi. Image Credits: Denis Kalinin

However, only 15% of investments in 2020 and 17% of investments in the first half of 2021 were in companies outside China, significantly lower than in 2019. This appears to be because during COVID, China’s economy recovered much faster than other countries’, so many Chinese investors preferred to redirect their capital flows to the domestic market.

On the other hand, there is great potential for overseas investments to rebound as soon as the borders reopen and the global economy starts to recover.

Dynamics of Chinese investments. $bn. Source: Crunchbase, ITjuzi

Fig. 2 — Dynamics of Chinese investments. $bn. Source: Crunchbase, ITjuzi. Image Credits: Denis Kalinin

We can also see that Chinese investors are eyeing European startups favorably, which is related to U.S.-China geopolitical tensions as well as the fact that the European VC market is becoming mature.

What we expect from next week’s Apple event

We’ve been scouring the latest rumors and leaks and playing all of The Mamas and The Papas songs forward and backward to get the best possible picture of what we’re in store for with next Tuesday’s “California Streaming’” event.

The invites, which went out a week in advance, don’t appear to give the game away here. There was some extremely cool AR trickery, accessible through Safari on mobile, which could point to some fancy camera upgrades, though augmented reality has become a bit of a staple on these invites.

The California Streaming title, meanwhile, seems likely to be more of a nod to the all-virtual nature of the event, rather than anything to do with, say, Apple TV (of course, we’ve been one-more-thinged in the past). And as for that lovely shot of the Sierras — that could well be a nod to macOS, though the company has moved onto Monterey. It seems just as likely to be a reference to the aforementioned title.

The biggest, simplest and most important answer to the question of what to expect is a new iPhone. Last year’s models saw a notable delay due to COVID-19-related supply chain bottlenecking. Supply chain problems have persisted, of course, but by all accounts, the company appears to be back on track with its pre-pandemic release cycle.

The iPhone 12’s biggest upgrade was, of course, the long-awaited addition of 5G. That, coupled with the delay, led Apple to some pretty massive sales quarters amid a broader stalling of the overall mobile market. While other manufacturers have skipped the number out of superstitious concerns, Apple seems firmly on board with iPhone 13 (even as renders of its successor, the iPhone 14 have reportedly already leaked).

Image Credits: Getty Images / Qi Heng/VCG

Recent reports suggest that the iPhone 13 will arrive in four different configurations — much like its predecessor. So: the iPhone 13, 13 Mini, 13 Pro and 13 Pro Max. The screen sizes should remain the same: 5.4, 6.1 (x2) and 6.7 inches. A separate report, meanwhile, suggests that we’ll see additional colors, with the full lineup being black, white, blue, purple, pink (rather than green) and Product (Red). But, keep in mind that offering different color availabilities in different markets isn’t entirely out of the question.

Unsurprisingly, camera upgrades appear to be the biggest news here. Word from analyst Ming-Chi Kuo is that last year’s Pro Max model specs will graduate to the rest of the line (including, potentially, lidar). A ProRes video mode is said to be following the addition of ProRAW to further advance the handset’s bonafides as a semi-pro video shooting rig. Cinematic Video, meanwhile, is said to bring a Portrait-mode-style effect to video. Kuo has also suggested that the devices will be getting a feature based on the Qualcomm X60 that allows for emergency satellite calls — reportedly only available in select markets.

Of course, the phone will also be getting Apple’s latest chip, the A15, said to be coupled with 120 Hz ProMotion display. Apple could also be bringing an always-on feature to the screen, hopefully with minimal impact on battery life. Looks-wise we anticipate it will be more or less the same as its predecessor, albeit with a somewhat smaller camera notch up front — though not to the point of the fake Ted Lasso iPhone. The camera bump around back, meanwhile, is said to be getting larger, perhaps offering an improved telephoto lens.

Oh, and apparently they’ll be more expensive than the iPhone 12 — clearly not one of the new features Apple is going to be actively promoting.

Image Credits: Apple

The Apple Watch 7 seems destined to be the other big news of the event. Apple’s massively popular wearable is reportedly set to get more massive, with a larger display, resulting in a slightly larger case size, from 40 mm and 44 mm to 41 mm and 45 mm. The overall size won’t be too large a change, however, as the company is said to be reducing its bezels this go-round.

Perhaps the most exciting rumor around the Watch is the addition of significant battery life. That’s long felt like a blind spot for the product, compared to competing smartwatches — particularly after Apple significantly improved sleep tracking. Most aren’t anticipating major new health features for the Watch this outing, which is a bit of a surprise here, given that health and fitness have been a major cornerstone for Apple.

Image Credits: TechCrunch

AirPods 3 seem like a reasonably good bet. The latest version of the company’s entry-level earbuds (and their case) are said to be getting a more Pro-style redesign, along with a new chip that’s designed to improve battery life. Active noise cancelation and replaceable tips are apparently not going to make an appearance to maintain the distinction between the two models.

With the company’s rangewide upgrade to its own silicon chugging along, don’t be surprised if we see a number of new Macs. Rumors suggest a new MacBook Pro, Mac Mini and a larger, 27-inch version of its ARM-powered iMac.

The event kicks off Tuesday, September 14 at 10 a.m. PDT/1 p.m. EDT. We’ll be here, bringing you the news as it arrives.
Read more about Apple's Fall 2021 Event on TechCrunch

Epic Games asks Apple to reinstate Fortnite in South Korea after new law

Epic Games has asked Apple to rejoin its Fortnite developer account in South Korea as the U.S. game maker plans to re-release Fortnite on iOS in South Korea, offering both Epic and Apple payments side-by-side, said in a tweet on September 10.

Epic has asked Apple to restore our Fortnite developer account. Epic intends to re-release Fortnite on iOS in Korea offering both Epic payment and Apple payment side-by-side in compliance with the new Korean law.

— Fortnite (@FortniteGame) September 9, 2021

This request comes after South Korea passed a bill, the updated Telecommunications Business Act, in late August that will force Apple and other tech giants to let developers use their third-party payment systems.

“Epic intends to re-release Fortnite on iOS in Korea offering both Epic payment and Apple payment side-by-side in compliance with the new Korea law,” according to the official Fortnite Twitter account.

“As we’ve said all along, we would welcome Epic’s return to the App Store if they agree to play by the same rules as everyone else. Epic has admitted to breach of contract and as of now, there’s no legitimate basis for the reinstatement of their developer account,” said a spokesperson at Apple.

Epic would also have to agree to comply with Apple’s App Store Review Guidelines regarding all apps, but Epic has not consistently abided by the Guidelines, and their request of Apple does not indicate any change in Epic’s position, added Apple’s statement.

Even if the South Korean legislation, which is not yet effective, were to become law in the country, it would impose no obligation on Apple to approve any developer program account application, which includes any requests for reinstatement of a developer program account terminated prior to the legislation’s effective date, based on Apple’s statement.

In August 2020, Apple kicked Fortnite off the App Store after Epic introduced a direct payment system in Fortnite that violated Apple’s in-app purchase requirement. The two companies have been embroiled in a legal dispute over the Apple Store’s payment system.

Apple is changing its app policy to allow developers to link to external websites and it also has reached a settlement with Japan for allowing developers of “reader” apps to link to their own websites.

An Epic Games spokesperson did not immediately respond to a request for comment.

 

Uber Eats, Grubhub, DoorDash sue NYC for limiting fees the apps can charge restaurants

Food ordering and delivery platforms DoorDash, Caviar, Grubhub, Seamless, Postmates and Uber Eats have banded together to sue the City of New York over a law that would permanently limit the amount of commissions the apps can charge restaurants to use their services.

The Wall Street Journal first reported the news that the companies filed suit in federal court on Thursday evening and are seeking an injunction that would prevent the city from enforcing the legislation, unspecified monetary damages and a jury trial.

Last year, the city council introduced temporary legislation that would prohibit third-party food delivery services from charging restaurants more than 15 percent per delivery order and more than 5 percent for marketing and other nondelivery fees in an effort to help ease the strain on an industry struggling from pandemic lockdowns. The companies filing suit against the city claim the limit on fees, which was made  permanent last month under a bill sponsored in June by Queens Councilman Francisco Moya, has already cost them hundreds of millions of dollars.

“Throughout the COVID-19 pandemic, third-party platforms like Plaintiffs have been instrumental in keeping restaurants afloat and food industry workers employed, including by investing millions of dollars in COVID-relief efforts specifically for local restaurants,” the lawsuit reads. “Yet, the City of New York has taken the extraordinary measure of imposing permanent price controls on a private and highly competitive industry—the facilitation of food ordering and delivery through third-party platforms. Those permanent price controls will harm not only Plaintiffs, but also the revitalization of the very local restaurants that the City claims to serve.”

Other cities also instituted similar caps during the pandemic, but most have fizzled out as the pandemic has eased and restaurants have been able to open their dining rooms. San Francisco is among of handful of cities that has also decided to enact a permanent 15 percent cap, and the app-based companies are suing there, as well. They argue that extending the limits on fees, which can be as high as 30 percent per order, “bears no relationship to any public-health emergency,” and are unconstitutional because they interfere with negotiated contracts and dictate “the economic terms on which a dynamic industry operates.”

As with the temporary law, any violators of the permanent cap would face up to $1,000 per day in fines per restaurant. The companies said the new law would not only cause them to have to rewrite their contracts with restaurants, but also raise fees for consumers and hurt delivery workers’ ability to make money.

The companies also argue that if the city wants to improve profitability of local restaurants, it could provide tax breaks or grants out of its own pocket instead of hurting the commissions of the delivery services.

“But rather than exercise one of those lawful options, the City chose instead to adopt an irrational law, driven by naked animosity towards third-party platforms,” the companies said, citing a tweet from Moya after he introduced a 10 percent commission cap bill that said, “NYC local restaurants needed a 10 percent cap on delivery fees from third party services like GrubHub long before #COVID19 hit us. They damn sure need it now.”

This legislation also comes amid increasing scrutiny over app-based delivery companies that have a reputation for harming both restaurants and gig workers in an effort to keep costs low for consumers. Recently, a California superior court ruled Proposition 22, which would allow these companies to continue classifying its workers as independent contractors, rather than employees, as unconstitutional. This ruling prompted DoorDash workers to protest last week outside the home of CEO Tony Xu demanding better pay and more tip  transparency. Meanwhile in Massachusetts, a similar law to Prop 22 has just gotten the green light to go ahead on the November 2022 ballot.

“Restaurants pay app-based delivery companies for a variety of services through commissions, one of these being delivery services,” said an unnamed courier in the lawsuit against the city. “Capping these commissions means less earnings for people like me. A commission cap could also mean delivery services get more expensive for the customers I deliver to, which ultimately means less orders for me.”

Snyk snags another $530M as valuation rises to $8.5B

Snyk, the Boston-based late-stage startup that is trying to help developers deliver more secure code, announced another mega-round today. This one was for $530 million on an $8.5 billion valuation, with $300 million in new money and $230 million in secondary funding, the latter of which is to help employees and early investors cash in some of their stock options. The $8.5 billion valuation was up from $4.7 billion in March when the company raised $300 million.

The long list of investors includes an interesting mix of public investors, VC firms and strategics. Sands Capital Ventures and Tiger Global led the round, with participation from new investors Baillie Gifford, Koch Industries, Lone Pine Capital, T. Rowe Price and Whale Rock Capital Management. Existing investors also came along for the ride, including Accel, Addition, Alkeon, Atlassian Ventures, BlackRock, Boldstart Ventures, Canaan Partners, Coatue, Franklin Templeton, Geodesic Capital, Salesforce Ventures and Temasek.

This round brings the total raised in funding to $775 million, excluding secondary rounds, according to the company. With secondary rounds, it’s up to $1.3 billion, according to Crunchbase data. The company has been raising funds at a rapid clip (note that the last three rounds include the Snyk money plus secondary rounds):

Snyk's last four rounds

While the company wouldn’t share specific revenue figures, it did say that ARR has grown 158% YoY; given the confidence of this list of investors and the valuation, it would suggest the company is making decent money.

Snyk CEO Peter McKay says that the additional money gives him flexibility to make some acquisitions if the right opportunity comes along, what companies often refer to as “inorganic” growth. “We do believe that a portion of this money will be for inorganic expansion. We’ve made three acquisitions at this point and all three have been very, very successful for us. So it’s definitely a muscle that we’ve been developing,” McKay told me.

The company started this year with 400 people and McKay says they expect to double that number by the end of this year. He says that when it comes to diversity, the work is never really done, but it’s something he is working hard at.

“We’ve been able to build a lot of good programs around the world to increase that diversity and our culture has always been inclusive by nature because we’re highly distributed.” He added, “I’m not by any means saying we’re even remotely close to where we want to be. So I want to make that clear. There’s a lot we still have to do,” he said.

McKay says that today’s investment gives him added flexibility to decide when to take the company public because whenever that happens it won’t have to be because they need another fundraising event. “This raise has allowed us to set up with strong, highly reputable public investors, and it gives us the financial resources to pick the timing. We are in control of when we do it and we will do it when it’s right,” he said.

Apple has reportedly appointed wearable chief Kevin Lynch to lead its car division

Apple has reportedly appointed a new executive to lead the development of its secretive self-driving car division. According to Bloomberg, the company has tapped Kevin Lynch to oversee Project Titan following the departure of executive Doug Field, who left the iPhone maker for Ford earlier this week.

The name may not be familiar, but if you’ve watched any Apple event in recent years, you’ve seen Lynch on stage. After a stint at Adobe, he joined Apple in 2013 to oversee the company’s wearable and health unit and has frequently been the one to present whatever new features Apple is working on for watchOS.

Bloomberg reports Lynch joined the division earlier in the year but is now overseeing the entire unit. The outlet notes Lynch’s appointment suggests Apple is likely focusing on underlying software that a self-driving car would need to navigate the road, instead of a vehicle that we could see the company release anytime soon.

Editor’s note: This article originally appeared on Engadget.

Daily Crunch: Ray-Ban Stories smart glasses are latest step in Facebook’s AR ambitions

To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here.

Hi friends!

Greg here again for this edition of the Daily Crunch on Thursday, September 9, 2021. Alex Wilhelm is still out on vacation for a few more days … even though he’s still tweeting a lot, which leads me to think he’s either bad at vacation or dislikes Twitter less than I do. Whatever the case, I’ll keep that daily recap goodness flowing to give you a glimpse into the biggest stories to cross our front page.

The TechCrunch Top 3

  • Facebook’s smart Ray-Bans: Five years after Snap shipped its Spectacle sunglasses, Facebook is taking a swing at the concept. But you won’t find the Facebook logo anywhere on these things (presumably because nobody on the planet wants the Facebook logo on their face). Built in partnership with Ray-Ban’s parent company, they look just like a classic pair of Wayfarers with an added bit of heft … and cameras. A white LED lights up when you’re shooting photos or videos, and near-ear speakers pipe in your tunes and phone calls. You can’t get them wet, which is great because no one wears sunglasses around places with water, like pools or beaches. Lucas Matney reviewed them here.
  • Roomba gets smarter: New Roomba incoming! The big new feature? It’ll try to detect and avoid poop your pets might have left in its path. Past models would just blast right through that mess and drag it around, leaving owners quite the horror show to come home to.
  • Notion acquires Automate.io: Notion is buying Automate.io, a startup out of India that lets you easily hook into services like Mailchimp or Gmail or Salesforce (or Notion!) and create complex automated workflows. “It’s a sizable acquisition,” Notion’s COO said without disclosing exactly how much it spent.

Startups/VC

  • Skydweller Aero raises $8M for solar-powered planes: “Airplanes and drones today, regardless of size or fuel type, all face the same limitation: eventually they have to land.” writes Aria Alamalhodaei. “Skydweller Aero, the U.S.-Spanish aerospace startup, wants to break free from that constraint … “
  • The $510M Series E: Varo Bank just won’t stop raising money. In June 2020, it raised $241 million, tacking on another $63 million in February 2021 because why not. Now it’s raised a staggering $510 million in a Series E round that values the company at $2.5 billion. “We didn’t set out to raise this much money. It was coming in fast and furious and we were at like $510 [million] and I finally said, ‘OK, enough,’” says Varo CEO Colin Walsh in a statement we can all totally relate to. Right? Anyone?
  • Affinity raises $80M to use machine learning to close deals: Who in your organization is best suited to close that deal? Can machine learning algorithms chew through your company’s data (past email interactions, calendar availability, etc.) and recommend the right person? That’s part of what Affinity is working on, and they’ve raised another $80 million to keep the ball moving and the company growing. Affinity currently has 125 employees, with plans to balloon to over 200 in the next year.

Anatomy of a SPAC: Inside Better.com’s ambitious plans

Online mortgage company Better.com isn’t waiting to complete its SPAC merger before making big moves: Today, Ryan Lawler reported that it purchased Property Partners, a U.K.-based startup that offers fractional property ownership.

It’s the second company Better bought in recent months: In July, it snapped up digital mortgage brokerage Trussle.

“We aren’t so easily categorized,” said Better CEO Vishal Garg, who told Ryan that the company plans to soon expand into traditional financial services like auto loans and insurance.

Said CFO Kevin Ryan, “A lot of people have their niches in the way they’re attacking this, but we feel like we’re on a path to being full stack where everything’s embedded in the same flow.”

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Big Tech Inc.

  • Twitter communities: Twitter keeps trying new things to make Twitter more approachable for people who don’t already have 10,000 followers. The latest experiment: Communities, or moderated social hubs, in which you can tweet with others around a shared interest. Twitter is limiting the categories, for now, to topics like dogs, weather, sneakers, skincare and astrology, and presumably hoping to stay way, way, way far away from politics for as long as possible.
  • Microsoft is buying Clipchamp: Ever wished Microsoft’s 365 tool suite included a video editor? Seems it’s on the way. Microsoft announced that it’s buying up Clipchamp, a web-based tool for creating/editing videos. As for when it might be integrated into 365? TBD.
  • Quicken gets sold again: Well that was quick(en). Just a few years after being acquired by a private equity firm, Quicken is being sold off to a different private equity firm. Quicken CEO Eric Dunn shared his thoughts on the deal (plus some insights on the company’s growth as of late) with TC’s Mary Ann Azevedo.

TechCrunch Experts: Growth Marketing

Illustration montage based on education and knowledge in blue

Image Credits: SEAN GLADWELL (opens in a new window) / Getty Images

We’re reaching out to startup founders to tell us who they turn to when they want the most up-to-date growth marketing practices. Fill out the survey here.

Read one of the testimonials we’ve received below!

Marketer: Kevin Miller, GR0

Recommended by: Leeann Schudel, The Word Counter

Testimonial: “Super detailed analysis of the space and what keywords to target that would move the needle the most. There is a full dedicated SEO team that communicates weekly at the minimum and provides in-depth analysis. They are very transparent with their strategies and explain all moves they are making on their end and how it will benefit our company. Super easy and flexible to work with, aren’t stingy on deliverables and are always there as a consultant.”

The 2022 Chevrolet Silverado gets a tech upgrade, hands-free trailering and a new ZR2 off-road flagship

GM unveiled Thursday the 2022 Chevrolet Silverado, a full-sized pickup truck that received a major technology upgrade, including its hands-free Super Cruise advanced driver assistance system and an infotainment system with embedded Google services, as well as an overhauled interior. A new flagship trim, the off-road ZR2 truck with a factory-installed suspension lift, has also joined the Silverado lineup.

The Silverado refresh comes ahead of GM’s electric vehicle offensive, which will include Chevrolet and GMC pickup trucks. GM aims to deliver 30 new electric vehicles to the global market by 2025 and to transition to all zero-emission vehicles by 2035. GM said the new Silverado trims will arrive at dealerships in spring 2022.

The exterior of the Chevy Silverado also received a refresh, including new front fascia and daytime running lights that animate when the driver walks up or away from the vehicle. But the real change can be found in the cabin — and the hardware and software guts — of the truck.

 2022 Chevrolet Silverado ZR2 2022 Chevrolet Silverado ZR2

The 2022 Chevrolet Silverado ZR2 and new headlights. Image Credits: GM

Chevy offers the Silverado in the LT, RST, LT Trail Boss, ZR2, LTZ and High Country trims, all of which come standard with a 2.7-liter turbocharged engine — now with 420 pound-feet of torque (up 20% over the previous model). The maximum tow rating on 2WD models is 9,600 pounds. GM also made changes to smooth out shifting and give drivers more power on demand.

The automaker also improved its 3.0 L Duramax turbocharged diesel engine to enable a max tow rating of 13,300 pounds (2WD models). Two other powertrains, the 5.3-liter V8 and the 6.2-liter V8, are also offered.

The interior cabin has been revamped to make it feel more spacious and includes a 13.4-inch touchscreen and a new 12.3-inch configurable digital instrument cluster standard. Owners will also be able to add a rear camera mirror and a head-up display.

Chevrolet Silverado

The first-ever 2022 Chevrolet Silverado ZR2. Image Credits: GM

Finally, the Silverado interior will be offered in new colors, seat designs and premium materials. For model trims with bucket seats, the new center console incorporates an electronic shift controller.

Alexandre Scartezini, Chevrolet Truck’s lead interior designer, has described it as more contemporary and refined “with a hint of Corvette influence in its design DNA.”

Everything Google

Moving in deeper inside the vehicle, aka the infotainment, users will find Google, or more specifically Android Automotive, at the heart of the operating system. This means that Google Assistant, Google Maps and Google Play are all integrated into the infotainment screen.

Android Automotive OS shouldn’t be confused with Android Auto, which is a secondary interface that lies on top of an operating system. Android Auto is an app that runs on the user’s phone and wirelessly communicates with the vehicle’s infotainment system. Both Android Auto and its Apple CarPlay counterpart will be offered in the new Silverado. GM said the system also works with Amazon Alexa.

Meanwhile, Android Automotive OS is modeled after its open source mobile operating system that runs on Linux. But instead of running smartphones and tablets, Google modified it so automakers could use it in their cars. Google has offered an open source version of this OS to automakers for some time. In recent years, automakers have worked with the tech company to natively build in an Android OS that is embedded with all the Google apps and services.

Hands-free driving

All of the Silverado trims come standard with six active safety features, including automatic emergency braking, lane-keeping assist and forward collision alerts, a warning if the vehicle leaves its lane, a following distance indicator, automatic high beams and front pedestrian braking.

The big change is the addition of the automaker’s Super Cruise hands-free driver-assistance technology, which will be an available option on the High Country trim. Importantly, the system can be used even while trailering. Certain features of Super Cruise like automatic lane changing and lane change on demand will be restricted if the truck is towing.

Super Cruise uses a combination of lidar map data, high-precision GPS, cameras and radar sensors, as well as a driver attention system, which monitors the person behind the wheel to ensure they’re paying attention. Unlike Tesla’s Autopilot driver assistance system, users of Super Cruise do not need to have their hands on the wheel. However, their eyes must remain directed straight ahead.

While GM has steadily improved Super Cruise since its introduction in 2017, for years it was limited to its luxury Cadillac brand and restricted to certain divided highways. That began to change in 2019 when GM announced plans to expand it to more models and use cases. The system can be activated on more than 200,000 miles of roads in the United States and Canada.

The Silverado will offer other trailer assistance features, including one that will alert drivers to vehicles in their blind spot.

What China’s new data privacy law means for US tech firms

Scott W. Pink
Contributor

Scott W. Pink is special counsel in O’Melveny’s Data Security & Privacy practice based in Silicon Valley. He advises technology, media, entertainment and a variety of companies on issues of cybersecurity and privacy, IP counseling; social media law; and advertising, marketing, and promotions law.

China enacted a sweeping new data privacy law on August 20 that will dramatically impact how tech companies can operate in the country. Officially called the Personal Information Protection Law of the People’s Republic of China (PIPL), the law is the first national data privacy statute passed in China.

Modeled after the European Union’s General Data Protection Regulation, the PIPL imposes protections and restrictions on data collection and transfer that companies both inside and outside of China will need to address. It is particularly focused on apps using personal information to target consumers or offer them different prices on products and services, and preventing the transfer of personal information to other countries with fewer protections for security.

The PIPL, slated to take effect on November 1, 2021, does not give companies a lot of time to prepare. Those that already follow GDPR practices, particularly if they’ve implemented it globally, will have an easier time complying with China’s new requirements. But firms that have not implemented GDPR practices will need to consider adopting a similar approach. In addition, U.S. companies will need to consider the new restrictions on the transfer of personal information from China to the U.S.

Implementation and compliance with the PIPL is a much more significant task for companies that have not implemented GDPR principles.

Here’s a deep dive into the PIPL and what it means for tech firms:

New data handling requirements

The PIPL introduces perhaps the most stringent set of requirements and protections for data privacy in the world (this includes special requirements relating to processing personal information by governmental agencies that will not be addressed here). The law broadly relates to all kinds of information, recorded by electronic or other means, related to identified or identifiable natural persons, but excludes anonymized information.

The following are some of the key new requirements for handling people’s personal information in China that will affect tech businesses:

Extra-territorial application of the China law

Historically, China regulations have only been applied to activities inside the country. The PIPL is similar in applying the law to personal information handling activities within Chinese borders. However, similar to GDPR, it also expands its application to the handling of personal information outside China if the following conditions are met:

  • Where the purpose is to provide products or services to people inside China.
  • Where analyzing or assessing activities of people inside China.
  • Other circumstances provided in laws or administrative regulations.

For example, if you are a U.S.-based company selling products to consumers in China, you may be subject to the China data privacy law even if you do not have a facility or operations there.

Data handling principles

The PIPL introduces principles of transparency, purpose and data minimization: Companies can only collect personal information for a clear, reasonable and disclosed purpose, and to the smallest scope for realizing the purpose, and retain the data only for the period necessary to fulfill that purpose. Any information handler is also required to ensure the accuracy and completeness of the data it handles to avoid any negative impact on personal rights and interests.

Squad Mobility eyes shared platforms as target for its compact solar electric quadricycle

Squad Mobility’s vision of the perfect urban vehicle is a low-cost EV equipped with solar panels, swappable batteries and enough zip and range in its diminutive 6.5-foot package to meet the needs of city drivers.

The early-stage Dutch startup, which recently revealed the final design of its quadricycle, is now assembling working prototypes in Breda, the Netherlands. Squad has said the vehicle will have a base price of €5,750 ($6,790), excluding taxes. That price goes up if buyers want to add features like removable doors, air conditioning, heating and extra batteries.

Squad plans to present the prototypes this fall, Robert Hoevers, CEO and co-founder of the company, said in a recent interview. Pre-production is also expected to begin this year with a goal to start delivering the car at the end of 2022.

Squad, like so many other new entrants to the EV car scene, will need more funds to reach its target.

In June, the company raised an undisclosed amount from Bloomit Ventures. To reach its production goals, Hoevers estimates Squad will need an additional €3.5 million ($4.1 million) for its next round, and then another €8 million ($9.6 million) to be able to deliver the first Squads. The company has not yet announced a round publicly, but says it’s in talks with various interested parties.

Interested customers can go on Squad’s website and pay a €5 reserve fee, but where Squad really sees its path to market is with shared mobility companies. The startup says it is in talks with a range of micromobility and car-sharing operators that might be interested in diversifying their fleets with a compact, smart vehicle.

The Squad, which is a combination of the words “solar” and “quadricycle,” seats two, punches up to 30 miles per hour and is fueled by two swappable batteries with a capacity of around 1.6 Kwh each and a collective range of about 62 miles. This is similar to the battery capacity and range of electric mopeds.

For the average European city driver, that should be enough range. Squad also installed a 250-watt solar panel to the vehicle, which the company says adds another 12 miles per day given the amount of sun Europe tends to get.

Rendering of a Squad charging station for swappable batteries that can be used by shared mobility operators. Image Credits: Squad Mobility

Squad is coming onto the scene at the intersection of new mobility categories and EV charging innovation, which could be appealing to shared mobility operators looking to solve more use cases.

Shared micromobility companies are beginning to add electric mopeds to their fleets of e-scooters and e-bikes. The Squad could appeal to operators that want to appeal to a broader demographic, and one specifically more comfortable in a four-wheeled vehicle.

The potential savings from harnessing the power of the sun could attract operators as well. In the micromobility world, the labor costs associated with swapping batteries or charging vehicles represent a roadblock to profitability. A vehicle that’s constantly on a bit of a charge, at least during the daylight hours, might help alleviate that pain point.

“The idea is not to drive directly on solar,” Hoevers told TechCrunch. “The idea is to buffer the batteries with solar and then drive on the batteries. The sun is more or less drip charging the battery throughout the day, which is actually a very healthy way of charging. You don’t want to top off your batteries to 100%. You want to keep them at around 50% to 60% all the time for a longer battery life.”

Hoevers said Squad has been in talks with shared micromobility providers to pitch the quadricycle, and has found that most dockless vehicles see about four to five rides per day and drive about 36 to 38 miles per day, numbers that TechCrunch confirmed with a few micromobility operators and that are well within the range of the Squad car.

Squad also intends to equip its vehicles with cameras, sensors and other smart features like remote diagnostics and maintenance, which will make the company more attractive to shared operators looking for a fleet that can be integrated into its management platforms. Hoevers also says he and his co-founder, Chris Klok, have used their collective 40 years of experience in mobility and shared past at long range solar EV company Lightyear to develop a strong CAN bus and drivetrain upon which new features can be added.

Whether Squad ends up selling fleets to micromobility platforms or car-sharing platforms might depend on the category in which the vehicle ends up. With its current speed and weight, the Squad car will be in the L6e category for light four-wheeled vehicles.

“There are interesting cost and tax benefits in this segment,” said Hoevers. “For example, there is no congestion charge, no road tax, no parking fees, low insurance fees and no car driving license needed in most markets.”

Hoevers said the company is also considering producing a more powerful L7 that can go top speeds of around 45 miles per hour, which might be better for cities with more hills.

The competition

Squad isn’t the only company that has added solar panels to its electric vehicles. Germany-based startup Sono Motors told TechCrunch that it’s on track to begin deliveries of its electric Sion vehicle by 2023. The vehicle’s exterior is composed of hundreds of solar cells that have been integrated into polymer instead of glass and can add up to nearly 22 miles of extra battery life per day.

Although the Sion has not yet been released, the Sono app is already inviting owners of the vehicle to engage in a sort of car sharing that’s reminiscent of Airbnb for Sions in order to make use of vehicles that otherwise sit parked and useless for most of the day. As of Thursday, Sono is expanding this vision to allow any car to be shared via the Sono app.

Aptera Motors, a California company that has promised to roll out the “first mass-produced solar car” this year, raised $4 million in a Series A this February that it is using to pay for fiberglass, carbon fiber and batteries for its spaceship-looking tricycle. Aptera says its vehicle, which is available for pre-order and could cost anywhere between $25,900 and $46,900, will be built with 34 square feet of solar cells that can add an additional 40 miles of battery capacity on a clear day.

Each of the players in the solar-powered EV space have differences in tech, path to market and style, but they’re all potentially finding ways to ease the strain on the electrical grid.

In the Netherlands, new electric cars make up 25% of total market share, and that number will only increase. It might not be feasible in the long run for all of those vehicles to each plug into the grid to power up, especially when industries across sectors are beginning to electrify.

While it’s clear that the technology isn’t there yet for vehicles to run purely on solar, Squad and other companies like it are laying the groundwork for future solar technology.

UK dials up the spin on data reform, claiming ‘simplified’ rules will drive ‘responsible’ data sharing

The U.K. government has announced a consultation on plans to shake up the national data protection regime, as it looks at how to diverge from European Union rules following Brexit.

It’s also a year since the U.K. published a national data strategy in which said it wanted pandemic levels of data sharing to become Britain’s new normal.

The Department for Digital, Culture, Media and Sport (DCPS) has today trailed an incoming reform of the information commissioner’s office — saying it wants to broaden the ICO’s remit to “champion sectors and businesses that are using personal data in new, innovative and responsible ways to benefit people’s lives”; and promising “simplified” rules to encourage the use of data for research which “benefit’s people’s lives”, such as in the field of healthcare.

It also wants a new structure for the regulator — including the creation of an independent board and chief executive for the ICO, to mirror the governance structures of other regulators such as the Competition and Markets Authority, Financial Conduct Authority and Ofcom.

Additionally, it said the data reform consultation will consider how the new regime can help mitigate the risks around algorithmic bias — something the EU is already moving to legislate on, setting out a risk-based proposal for regulating applications of AI back in April.

Which means the U.K. risks being left lagging if it’s only going to concern itself with a narrow focus on “bias mitigation”, rather than considering the wider sweep of how AI is intersecting with and influencing its citizens’ lives.

In a press release announcing the consultation, DCMS highlights an artificial intelligence partnership involving Moorfields Eye Hospital and the University College London Institute of Ophthalmology, which kicked off back in 2016, as an example of the kinds of beneficial data sharing it wants to encourage. Last year the researchers reported that their AI had been able to predict the development of wet age-related macular degeneration more accurately than clinicians.

The partnership also involved (Google-owned) DeepMind and now Google Health — although the government’s PR doesn’t make mention of the tech giant’s involvement. It’s an interesting omission, given that DeepMind’s name is also attached to a notorious U.K. patient data-sharing scandal, which saw another London-based NHS Trust (the Royal Free) sanctioned by the ICO, in 2017, for improperly sharing patient data with the Google-owned company during the development phase of a clinician support app (which Google is now in the process of discontinuing).

DCMS may be keen to avoid spelling out that its goal for the data reforms — aka to “remove unnecessary barriers to responsible data use” — could end up making it easier for commercial entities like Google to get their hands on U.K. citizens’ medical records.

The sizeable public backlash over the most recent government attempt to requisition NHS users’ medical records — for vaguely defined “research” purposes (aka the “General Practice Data for Planning and Research”, or GPDPR, scheme) — suggests that a government-enabled big-health-data-free-for-all might not be so popular with U.K. voters.

“The government’s data reforms will provide clarity around the rules for the use of personal data for research purposes, laying the groundwork for more scientific and medical breakthroughs,” is how DCMS’ PR skirts the sensitive health data sharing topic.

Elsewhere there’s talk of “reinforc[ing] the responsibility of businesses to keep personal information safe, while empowering them to grow and innovate” — so that sounds like a yes to data security but what about individual privacy and control over what happens to your information?

The government seems to be saying that will depend on other aims — principally economic interests attached to the U.K.’s ability to conduct data-driven research or secure trade deals with other countries that don’t have the same (current) high U.K. standards of data protection.

There are some purely populist flourishes here too — with DCMS couching its ambition for a data regime “based on common sense, not box ticking” — and flagging up plans to beef up penalties for nuisance calls and text messages. Because, sure, who doesn’t like the sound of a crackdown on spam?

Except spam text messages and nuisance calls are a pretty quaint concern to zero in on in an era of apps and data-driven, democracy-disrupting mass surveillance — which was something the outgoing information commissioner raised as a major issue of concern during her tenure at the ICO.

The same populist anti-spam messaging has already been deployed by ministers to attack the need to obtain internet users’ consent for dropping tracking cookies — which the digital minister Oliver Dowden recently suggested he wants to do away with — for all but “high risk” purposes.

Having a system of rights wrapping people’s data that gives them a say over (and a stake in) how it can be used appears to be being reframed in the government’s messaging as irresponsible or even non-patriotic — with DCMS pushing the notion that such rights stand in the way of more important economic or highly generalized “social” goals.

Not that it has presented any evidence for that — or even that the U.K.’s current data protection regime got in the way of (the very ample) data sharing during COVID-19… While negative uses of people’s information are being condensed in DCMS’ messaging to the narrowest possible definition — of spam that’s visible to an individual — never mind how that person got targeted with the nuisance calls/spam texts in the first place.

The government is taking its customary “cake and eat it” approach to spinning its reform plan — claiming it will both “protect” people’s data while also trumpeting the importance of making it really easy for citizens’ information to be handed off to anyone who wants it, so long as they can claim they’re doing some kind of “innovation”, while also larding its PR with canned quotes dubbing the plan “bold” and “ambitious”.

So while DCMS’ announcement says the reform will “maintain” the U.K.’s (currently) world-leading data protection standards, it directly rows back — saying the new regime will (merely) “build on” a few broad-brush “key elements” of the current rules (specifically it says it will keep “principles around data processing, people’s data rights and mechanisms for supervision and enforcement”).

Clearly the devil will be in the detail of the proposals which are due to be published tomorrow morning. So expect more analysis to debunk the spin soon.

But in one specific trailed change DCMS says it wants to move away from a “one-size-fits-all” approach to data protection compliance — and “allow organisations to demonstrate compliance in ways more appropriate to their circumstances, while still protecting citizens’ personal data to a high standard”.

That implies that smaller data-mining operations — DCMS’s PR uses the example of a hairdresser’s but plenty of startups can employ fewer staff than the average barber’s shop — may be able to expect to get a pass to ignore those ‘high standards’ in the future.

Which suggests the U.K.’s “high standards” may, under Dowden’s watch, end up resembling more of a Swiss Cheese…

Data protection is a “how to, not a don’t do”…

The man who is likely to become the U.K.’s next information commissioner, New Zealand’s privacy commissioner John Edwards, was taking questions from a parliamentary committee earlier today, as MPs considered whether to support his appointment to the role.

If he’s confirmed in the job, Edwards will be responsible for implementing whatever new data regime the government cooks up.

Under questioning, he rejected the notion that the U.K.’s current data protection regime presents a barrier to data sharing — arguing that laws like GDPR should rather be seen as a “how to” and an “enabler” for innovation.

“I would take issue with the dichotomy that you presented [about privacy vs data-sharing],” he told the committee chair. “I don’t believe that policymakers and businesses and governments are faced with a choice of share or keep faith with data protection. Data protection laws and privacy laws would not be necessary if it wasn’t necessary to share information. These are two sides of the same coin.

“The UK DPA [data protection act] and UK GDPR they are a ‘how to’ — not a ‘don’t do’. And I think the UK and many jurisdictions have really finally learned that lesson through the COVID-19 crisis. It has been absolutely necessary to have good quality information available, minute by minute. And to move across different organizations where it needs to go, without friction. And there are times when data protection laws and privacy laws introduce friction and I think that what you’ve seen in the UK is that when it needs to things can happen quickly.”

He also suggested that plenty of economic gains could be achieved for the U.K. with some minor tweaks to current rules, rather than a more radical reboot being necessary. (Though clearly setting the rules won’t be up to him; his job will be enforcing whatever new regime is decided.)

“If we can, in the administration of a law which at the moment looks very much like the UK GDPR, that gives great latitude for different regulatory approaches — if I can turn that dial just a couple of points that can make the difference of billions of pounds to the UK economy and thousands of jobs so we don’t need to be throwing out the statute book and starting again — there is plenty of scope to be making improvements under the current regime,” he told MPs. “Let alone when we start with a fresh sheet of paper if that’s what the government chooses to do.”

TechCrunch asked another Edwards (no relation) — Newcastle University’s Lilian Edwards, professor of law, innovation and society — for her thoughts on the government’s direction of travel, as signalled by DCMS’ pre-proposal-publication spin, and she expressed similar concerns about the logic driving the government to argue it needs to rip up the existing standards.

“The entire scheme of data protection is to balance fundamental rights with the free flow of data. Economic concerns have never been ignored, and the current scheme, which we’ve had in essence since 1998, has struck a good balance. The great things we did with data during COVID-19 were done completely legally — and with no great difficulty under the existing rules — so that isn’t a reason to change them,” she told us.

She also took issue with the plan to reshape the ICO “as a quango whose primary job is to ‘drive economic growth’ ” — pointing out that DCMS’ PR fails to include any mention of privacy or fundamental rights, and arguing that “creating an entirely new regulator isn’t likely to do much for the ‘public trust’ that’s seen as declining in almost every poll.”

She also suggested the government is glossing over the real economic damage that would hit the U.K. if the EU decides its “reformed” standards are no longer essentially equivalent to the bloc’s. “[It’s] hard to see much concern for adequacy here; which will, for sure, be reviewed, to our detriment — prejudicing 43% of our trade for a few low value trade deals and some hopeful sell offs of NHS data (again, likely to take a wrecking ball to trust judging by the GPDPR scandal).”

She described the goal of regulating algorithmic bias as “applaudable” — but also flagged the risk of the U.K. falling behind other jurisdictions which are taking a broader look at how to regulate artificial intelligence.

Per DCMS’ press release, the government seems to be intending for an existing advisory body, called the Centre for Data Ethics and Innovation (CDEI), to have a key role in supporting its policymaking in this area — saying that the body will focus on “enabling trustworthy use of data and AI in the real-world”. However it has still not appointed a new CDEI chair to replace Roger Taylor — with only an interim chair appointment (and some new advisors) announced today.

“The world has moved on since CDEI’s work in this area,” argued Edwards. “We realise now that regulating the harmful effects of AI has to be considered in the round with other regulatory tools not just data protection. The proposed EU AI Regulation is not without flaw but goes far further than data protection in mandating better quality training sets, and more transparent systems to be built from scratch. If the UK is serious about regulating it has to look at the global models being floated but right now it looks like its main concerns are insular, short-sighted and populist.”

Patient data privacy advocacy group MedConfidential, which has frequently locked horns with the government over its approach to data protection, also queried DCMS’ continued attachment to the CDEI for shaping policymaking in such a crucial area — pointing to last year’s biased algorithm exam grading scandal, which happened under Taylor’s watch.

(NB: Taylor was also the Ofqual chair, and his resignation from that post in December cited a “difficult summer”, even as his departure from the CDEI leaves an awkward hole now… )

“The culture and leadership of CDEI led to the A-Levels algorithm, why should anyone in government have any confidence in what they say next?” said MedConfidential’s Sam Smith.

DoNotPay’s ‘robot lawyer’ can now help report potholes or fallen trees to the city, file damage claims

Tired of swerving around the same pothole every day but don’t know how to report it to your city? Already reported it but feel like said report was fired off into the ether, never to be read much less fixed?

DoNotPay, a company that makes annoying processes less annoying through automation, might be able to help. Their “robot lawyer,” as the company calls it, started out as a service meant to help people more easily fight parking tickets. Over time it’s learned a bunch of new tricks, like helping users end tough-to-cancel subscriptions, get refunds they’re owed and more.

Its latest thing? Helping users report issues like potholes, fallen trees/branches and broken streetlights to their city government — and if said issue damaged your property or cost you money, it’ll help get you paid back.

Image Credits: DoNotPay

“It just seems so unfair that if an ordinary American is driving down the street with a broken tail light, the government could give them a ticket and charge them money … but if there’s a pothole in the road, you can’t get money from the government,” says DoNotPay founder Joshua Browder. “So we’ve decided to create a product that is like a fix-it ticket for the government.”

When you start the process of reporting a city issue with DoNotPay, you’re given two options: report the issue or claim compensation. The first finds the correct place to report an issue in your city, then their chatbot gathers all the info it needs and sends it over to the city with your contact info. The second walks you through the small claims court process; their robot lawyer can’t represent you, but it’ll generate the documents you need and try to tell you everything you need to know to make your case.

DoNotPay started out as something of a side project but quickly grew into something more.

“When I was studying at Stanford, I got a bunch of parking tickets,” Browder tells me. “I learned … I was a terrible driver. But I also learned that the government issues tickets to make money, not necessarily to punish people. So I created the first version for fun — to help myself and my friends. Within two days of creating it, one of my friends posted it on reddit and it went completely viral internationally. I went from 10 cases on day one to like … 50,000. All this made me realize that this is bigger than just a side project. It really taps into what people hate: being ripped off. So I’ve decided to devote all my time to pursuing that over the past six years.”

Browder tells me these new reporting features are live now, currently work in the top 50-or-so biggest US cities, and are included in DoNotPay’s standard subscription price ($36 for three months.)

Image Credits: DoNotPay