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Week in Review - Enjoyed by few, hated by all

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Saturday, May 08, 2021 By Lucas Matney

Hello friends, and welcome back to Week in Review!

Last week, I talked about the potential unwinding of several of venture capital’s biggest wins of the past decade. This week, I’m talking about Facebook’s never-ending Trump problem.

If you're reading this on the TechCrunch site, you can get this in your inbox from the newsletter page, and follow my tweets @lucasmtny.

The big thing

A few months ago, I wrote about how Facebook kicking the can down the road by temporarily banning (now former) President Trump was only going to cause it more problems in the long-term.

In January, days after a temporary ban, Facebook pushed the decision of Trump’s reinstatement to its invented venerable institution, the Facebook Oversight Board, hoping that the group of academics and intellectuals could come to a decision that would leave the company less liable for criticism.

But after months of deliberations, they have unsurprisingly decided to pass up making any sweeping calls in how the internet should treat problematic world leaders and decided that Facebook CEO Mark Zuckerberg should decide what the best solution should be to the platform he’s built.

You can read more in my colleague Taylor’s report:

The FOB confirmed that while it agrees Facebook had sufficient justification to suspend Trump's account on January 7 (and to remove posts that violated its policies against praise for violent acts), it believes the tech giant imposed an improper penalty which was not in line with its own rules.  

Its requirement is that Facebook revisit the case, with the board essentially encouraging it to take a full six months to deliberate, and then either restore Trump's account, make the ban permanent or define a suspension for a set period of time.

"The opinion stresses that Facebook's own policies do not authorize an indefinite suspension," said McConnell during a call with reporters, emphasizing that the company's own policies don't allow for such a 'fence-sitting' restriction and noting too that internationally recognized principles of freedom of expression "maintain that restrictions on speech must be clearly stated understandable".

What will result is a long, enduring, seemingly endless news cycle where Facebook has no friends or defenders among Democrats or Republicans because they took a position composed of half-measures rather than a decisive choice.

The big thing image

Image Credits: Win McNamee / Staff / Getty Images

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Other things

Here are the TechCrunch news stories that especially caught my eye this week:

Peloton treadmill recall dings stock
After a 2020 that pushed its business ahead by years, a major recall of Peloton’s Tread treadmills might set the connected fitness company back considerably. The announcement and apology this week caused the company’s stock to take a considerable dive.

Twitter integrates tipping
Twitter is continuing to push its product forward in an effort to capture new opportunities in social. The company announced this week that it was rolling out a “tip jar” functionality to allow creators to monetize their audiences in a more casual way than its upcoming Super Follow subscription plan.

Avatar startup Genies banks new funding
The startup behind the digital presences of dozens of celebrities announced its play in the NFT space and its latest funding bout, sharing that the company behind NBA Top Shot would be building the backend for an avatar accessories marketplace they’ll be launching this summer.

Private equity firm Apollo buys Verizon Media — and TechCrunch with it
TechCrunch was a part of the M&A news this week as private equity firm Apollo bought Verizon’s media arm filled with properties from Yahoo and AOL including a humble tech blog called TechCrunch.

Clubhouse comes to Android
After a swell of interest for Clubhouse in early spring, downloads have been slowing for the audio social network, but the company is hoping that early testing of an Android app will bring in more users to the platform.

Other things image

Image Credits: Rafael Henrique/SOPA Images/LightRocket via Getty Images

Extra things

Some of my favorite reads from our Extra Crunch subscription service this week:

The Duolingo EC-1
“Education may well be the most important activity we conduct as a society — and it may also be the hardest space to build a startup in. Selling to school districts and universities is notoriously difficult, but enticing consumers is even harder. Learning takes focus, patience, tenacity and resources, and most consumers would prefer to watch some lip-sync videos on TikTok than stare at math equations (not to mention that such entertainment is free). Engagement and education feel aggressively at odds, which limits the way that startups can scale and succeed.”

To buy time for a failing startup, recreate the engineering process
“If a stall isn't corrected promptly, a spin can develop. Flat spins are one of the worst. Once the flat spin starts, there are a number of techniques experienced pilots should perform to recover the aircraft. Nearly all of these techniques require a critical resource, altitude — or, put another way, time.

Freemium isn’t a trend, it’s the future of SaaS
“As lockdowns cascaded around the world last spring, companies large and small saw demand slow to a halt seemingly overnight. Enterprises weren't comfortable making big, long-term commitments when they had no clue what the future would hold. Innovative SaaS companies responded quickly by making their products available for free or at a steep discount to boost demand.”

Extra things image

Image Credits: Nigel Sussman

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