Meta Morphosis
Meta has to pay a $17 billion fine for what they did to become a $1.5 trillion company. That oughta teach ’em a lesson. Actually, that doesn’t really do justice to the financial slap on the wrist Meta just got in their settlement over claims that their products endangered children. They have a decade to make good on the settlement, and “the full value of Meta’s payout depends on whether other social media companies also settle with the states and agree to financial penalties and product changes. Meta will initially pay about $12 billion. It will pay an additional $5 billion if Snap, TikTok and YouTube also settle with the states and agree to financial penalties and product changes.” Meanwhile, Meta’s stock rose on the news, and at points during the trading day, the company gained more in marketcap than they’ll ever be required to pay out in fines. What amounts to financial rounding errors aside, the bigger news here is that the tide appears to have turned, at least a little, when it comes to this issue. “The settlement could signal an inflection point for a social media industry that has largely escaped regulatory scrutiny over the harms its products have caused children.” NYT (Gift Article): Meta to Pay Up to $17.1 Billion in Landmark Settlement Over Social Media Addiction Claims.
+ The settlement itself is actually less about money and more about future requirements. The Verge: Meta agrees to heavy restrictions on teen users in major lawsuit settlement. “Under the terms of the settlement, which resolves claims by a larger group of 47 states and several districts and territories, Meta agreed to come up with an age assurance standard that is subject to independent testing, and must have a false positive rate no higher than 10 percent for users aged 16 to 17, and 3 percent for users aged 13 to 15. The company also agreed to give teens the option to turn off personalized feeds, meaning that they won’t be shown content based on Meta’s recommendation algorithm, and Meta will suspend push notifications for teens between 10 PM and 7 AM unless parents disable those restrictions, as well as limit teens to two hours of Meta app usage per day.”
+ Ironically, big tech companies are finally being forced to acknowledge the damaging qualities of their wares at a moment when they’re moving on to a much more sweeping and powerful set of tools. Whether you read Bill Gates’ warnings about this moment in AI development in his interview with MIT Tech Review, the NYT, the WSJ, or his own personal blog, the message is basically the same. Insiders are extremely worried about the pace at which AI is developing (even though they don’t usually admit that in public), outsiders (including governments) aren’t doing nearly enough to address (or even understand) the issue, and thus, we’re not ready for what’s coming. So we’re addressing yesterday’s concerns as today’s are passing us by.
