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Week in Review - Regulating the future

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Saturday, June 19, 2021 By Lucas Matney

Hello friends, and welcome back to Week in Review!

Last week, I wrote about Apple’s privacy platform and how they’re monetizing it. This week, we’re talking about a future tech giants agree on and the missed opportunity facing regulators.

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

This week, Facebook put out a blog post talking about how they were testing virtual reality advertising inside their headsets for the first time, and in this post they spent some time addressing some of their commitments to privacy in this brave new world, namely that they won’t use conversations picked up by the headset’s microphones or images picked up by its tracking cameras to target ads to users. They noted that they don’t currently have plans to use motion data captured by the headset, but didn’t make a hard commitment.

Today, this all doesn’t mean that much to people. Facebook’s Oculus headsets are largely just toys used to play games and they don’t hold a candle to the utility unlocked by smartphones in our daily lives, but then again things weren’t so different a decade ago when smartphones came into their own. We may not all be wearing VR headsets in a decade, but Apple and Facebook and Microsoft and Snap are betting billions and pushing tens of thousands of employees onto the assumption that we’ll all be wearing augmented reality headsets around then.

It’s a prospect that’s wildly exciting to technologists, concerning to privacy advocates and likely years away from relevance to elected officials who have largely showcased just how ill-prepared they are to regulate technology in the mobile age. Rather than ham-handedly unwinding the tenets of major mobile platforms from trillion-dollar companies, perhaps the more technologically minded regulators should be spending this time thinking long and hard about how they want a world to look where there’s no meaningful friction between digital and physical frameworks.

It’s a very bizarre time for Big Tech populism; these major platforms are hated by both sides of the aisle for different reasons, but we’re probably going to see a couple efforts gather steam as politicians push to do something. AR regulation might not have the same appeal that a war on Big Tech’s bottom line today does, but it’s probably the most meaningful space in which they could be spending their time in terms of future competition for the world’s biggest companies and defining guidelines for consumer protections. Realistically, we’re probably a good 8-10 years from AR tech reaching mainstream appeal, but in the meantime all of these platforms are going to be building out operating principles and platform infrastructure, while being forced to grapple internally about their ethical red lines.

This is certainly a lot to expect from companies like Facebook, which have a track record for erring on the side of their shareholders’ interests, but forward-thinking regulation is also a lot to expect from regulatory bodies made up of people who barely understand how today’s platforms function. But this is about as straightforward a time as will ever exist when it comes to issuing broad regulatory edicts without breaking businesses and platforms on which millions of people rely. Rather than define AR’s platform-unique GDPR-type regulation in 2030, wouldn’t it be dandy if those conversations happened now?

The big thing image

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Other things

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

Apple podcast subscriptions go live
Apple’s podcast app coasted on some pretty base functionality for a while, but new iOS changes are bringing subscriptions to the app and a new monetization path for content creators on it. Subscribers can unlock ad-free listening, early access to new episodes, bonus material or exclusives depending on the podcaster’s choice.

Supreme Court revives LinkedIn scraping case
This week, the Supreme Court shared it will push an appeal’s court to hear Microsoft’s case again against Hiq Labs. The case, based on scraping of LinkedIn data, has potentially wide ramifications for the open web.

Zuckerberg demos Facebook’s Clubhouse competitor
At this point, Clubhouse has been cloned to hell and back, which is clearly the perfect time for Facebook to announce its own entrant, which Facebook CEO Mark Zuckerberg demoed this week with other executives at the company.

Nintendo brings the heat, but no “Switch Pro”
Japanese gaming legend Nintendo showcased trailers for a new 2D Metroid title and a 2022 follow-up to Legend of Zelda: Breath of the Wild. The company continues to rest on the laurels of its mega franchises and nostalgia hardware, but consumer hopes of a surprise hardware reveal for a next-generation console were denied this year — yet again.

E3 2021 wrap-up
It wasn’t just Nintendo news at E3 this year, though Sony did — again — ditch the show. It was another big year for Xbox Game Pass, which Microsoft is pushing hard as it continues down a path of reinvention for its gaming division, reshaping it as a services business.

Other things image

Image Credits: Photo by VCG/VCG via Getty Images

Extra things

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

The Nubank EC-1
“Nubank is on its way to realizing that objective. Its story is one of unmitigated success, even by the standards of our EC-1 series on high-flying companies and their hard-learned lessons. Just last week, this Brazilian credit card and banking fintech raised a $750 million round led by Berkshire Hathaway at a $30 billion valuation, becoming one of the most valuable startups in the world. It has 40 million users across Brazil, as well as Mexico and Colombia….”

5 tips to succeed in influencer marketing
“Influencers are a natural byproduct of this desire for social validation, and as social permeates the customer journey, creators have become an essential source of validation and trust. Indeed, social validation is what social platforms are built on, so it's a significant component of how we derive relevance online — and the deeper integration of social is changing the dynamic between brands and digital creators.

How to identify unicorn founders
“As an early-stage VC, you spend time with hundreds of fantastic startups, trying to identify potential winners by thinking about market size, business model and competition. Nevertheless, deep down you know that in the long run, it all comes down to the team and the founder(s).”

Extra things image

Image Credits: Nigel Sussman

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