Wednesday, 23 June 2021

Apple to drive China revenues with search ad launch

After launching five years ago in the United States, Apple’s search advertising service finally arrived in mainland China this week.

The feature, called Apple Search Ads, lets developers bid on an advertising slot based on users’ keyword search in the App Store, similar to how Google search ads work. JPMorgan previously estimated the giant’s annual ad revenue could top $11 billion by 2025, though the forecast didn’t have a breakdown for the search ad business.

Apple has itself been reining in on personalized advertising, letting users turn off data tracking by apps, a move that will inevitably roil the business models of Facebook and others dependent on third-party data to target ads.

China has historically been a strong market for Apple, but iPhones are increasingly losing their luster as a status symbol in the country with the rise of local offerings like Huawei. In the first quarter, however, Apple’s smartphone shipment saw a rebound thanks to Huawei’s slipping sales and the launch of the iPhone 12 family. The Chinese App Store is another important source of income for Apple.

In a five-page guideline, Apple outlines the qualifications for developers targeting ads at mainland Chinese users. There is a stack of industry-specific licenses that advertisers must obtain, which practically excludes most foreign entities from directly advertising in mainland China, as noted in a blog post by AppInChina, an agency that helps international apps launch in China. To bid for search ads in China, apps would have to find local partners with all the government approvals in place.

The requirements for apps importing goods into China, for example, include not just a general license to run value-added internet businesses but also registrations with the relevant trade and customs authorities. Apple may even start asking for these permits from apps that simply want to publish in China, wrote AppInChina, as Apple continues to enforce rules set by the Chinese government as evident from its crackdown on gaming apps.



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Tuesday, 22 June 2021

Super Follows and Ticketed Spaces are coming to Twitter

In Twitter’s latest appeal to one-up competitors from Clubhouse to Patreon, the company announced today that it will begin rolling out applications for Super Follows and Ticketed Spaces.

Twitter first teased the Super Follow feature during an Analyst Day event in February. Super Follows allow creators on Twitter to generate monthly revenue by offering paywalled content to followers who subscribe to them for $2.99, $4.99, or $9.99 per month.

Twitter will only take 3% of creators’ revenue after in-app purchase fees – but, on the App Store and Google Play, in-app purchase fees are 30%, which means that creators will take home about two-thirds of what their followers are paying. Once they exceed $50,000 of lifetime earnings on Twitter, the app will take “20% of future earnings after fees.” When combined with the 30% in-app purchase fee, that leaves creators with about half of their followers’ payments. Meanwhile, Patreon only takes between 5% and 12% of a creator’s earnings (it bypasses in-app purchase fees since it’s a web-based platform). While creators who primarily engage with their audience on Twitter might benefit from having a way to monetize without directing followers to another app, the difference in payout here is stark. Creators might not abandon their existing Patreon systems for Super Follows, but at the very least, this could offer a supplemental income stream.

“Our goal is to elevate people driving the conversations on Twitter and help them earn money,” said senior product manager Esther Crawford. “We updated our revenue share cuts after spending more time thinking about how we could support emerging voices on Twitter.”

Image Credits: Twitter

Ticketed Spaces seem more promising though, since Clubhouse, Spotify Greenroom, and other competitors don’t offer similar options yet (Discord is testing ticketed audio events on its Stage Discovery portal, but they aren’t out yet). Through Ticketed Spaces, users can set their ticket price anywhere between $1 and $999. Creators can also limit how many tickets are sold, which might incentivize someone to actually use the $999 ticket price for a one-on-one conversation with a celebrity (still… yikes?). Twitter will remind attendees that the Ticketed Space is happening through push and in-app notifications.

Clubhouse and Instagram have features that let listeners tip speakers or award badges in a live audio space, but the apps don’t yet allow for advance ticket sales. Another way for top creators to make money on these apps is through Creator Funds. Spotify Greenroom and Clubhouse have both announced plans for Creator Funds, but it’s not yet clear how the earning potential will compare with selling access to Ticketed Spaces on Twitter.

This slew of updates to Twitter comes after activist shareholders attempted to oust CEO Jack Dorsey last year. Now, Twitter is rapidly adding new features and acquiring companies like Revue (a newsletter platform), Ueno (a creative agency), and Breaker (a social podcasting platform).

Image Credits: Twitter

Applications to use Super Follows and Ticketed Spaces are only available on mobile (so, no avoiding the in-app purchase fees) and for people in the U.S. Currently, only iOS users can apply for Super Follows, but Ticketed Spaces applications are available on both iOS and Android. Twitter is adding a brand new Monetization button to the sidebar in the app, where users navigate to see if they’re eligible to apply to be part of the test groups for these features. These features will launch more broadly in the coming months.



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Apple is opening a store in downtown LA’s nearly 100-year-old Tower Theatre

This Thursday, Apple will mark the opening of a new store in downtown Los Angeles. The space occupies the newly renovated Tower Theatre, which opened in DTLA’s Broadway Theater District in 1927. Among other milestones, the 900-seat theater was the first in LA to be wired for the talkies, hosting a premier of “The Jazz Singer” that same year. Not for nothing, it was also the first theater in the city with air conditioning.

Apple Tower Theatre is actually the company’s 26th store in greater LA. Obviously, though, moving into a 94-year-old theater takes a fair bit more work than, say, a shopping mall. The store has been in the works for a number of years, owing in part to having to work with the city to restore a space that had been declared a landmark.

Image Credits: Apple

Interestingly, an LA Times article back in 2018 noted that the space, “may also serve as a declaration that Apple intends to compete as a major Hollywood content creator.” In hindsight, fair enough. Apple TV+ launched late the following year.

[gallery ids="2168778,2168774,2168777,2168779,2168782,2168766"]

The theater has actually been largely unoccupied since 1988, which clearly meant even more work had to go into shining up the walls and making the grand old theater presentable for that modern retail vibe — not to mention a seismic upgrade to help make it more earthquake proof.

The company also notes that it took care to maintain some of the space’s more iconic elements.

Image Credits: Apple

“Apple Tower Theatre anchors the corner of Eighth Street and Broadway, where visitors will immediately recognize the fully restored clock tower, recreated Broadway marquee, clean terra cotta exterior, and renovated historic blade sign,” Apple writes. “After walking through the Broadway doors, guests enter the monumental lobby inspired by Charles Garnier’s Paris Opera House, featuring a grand arched stairway with bronze handrails flanked by marble Corinthian columns.”

The store’s opening also marks the launch of Apple’s new Creative Studios initiative. The LA store and a location in Beijing will be the first to get the program. In its initial form, it will run between eight and 12 weeks, providing a group of mentors from the creative arts.

Image Credits: Apple

“Creativity and access to education are core values for Apple, so we are absolutely thrilled to kick off today at Apple Creative Studios in Los Angeles and Beijing and to bring this meaningful program to several more cities this year,” SVP Deirdre O’Brien said in a press release. “Building on our long history of using stores as a venue to host local artists to educate and inspire, Creative Studios is one more way we’re providing free arts education to those who need it most.”

Last week, Google launched its first retail store in Manhattan’s Chelsea district. The Apple Tower Theatre location opens at 10 a.m. local time on Thursday, June 24. The company says it’s employing nearly 100 to keep the store running.

 



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India orders antitrust investigation against Google over alleged abuse of Android’s dominance in smart TV market

India’s antitrust watchdog has ordered an investigation into allegations that Google has abused the dominant position of Android in the country’s smart TV market. The news comes hours after the European Union opened a formal antitrust investigation into allegations that Google abuses its leading role in the advertising-technology sector.

In its initial review, the Competition Commission of India, which began looking into these allegations last year, said Google had breached certain anti-competitive laws. An investigation of this scale can take quarters, if not over a year, to resolve.

“Google makes AOSP available to any third parties under an open- source license, however, the AOSP license does not grant OEMs, the right to distribute Google’s proprietary apps such as Play Store, YouTube, etc. referred to as Google Applications in TADA. The AOSP license further does not grant OEMs, the right to use the Android logo and other Android related trademarks,” it said in a 24-page order.

“In order to be able to preinstall Google’s proprietary apps, device manufacturers have to commit to comply with the ACC (Android Compatibility Commitments) for all devices based on Android manufactured/distributed/sold by them; and in order to be able to preinstall any proprietary app of Google, e.g. Play Store, device manufacturers will have to preinstall the entire suite of Google apps,” the order adds.

Google has denied any wrongdoing. “We are confident that our smart TV licensing practices are in compliance with all applicable competition laws,” a company spokesperson said in a statement.

About 8 million smart TV sets were sold in India in 2019, over 60% of which were powered by Google’s Android operating system.

It’s a tough week for American giants in India. On Monday evening, the world’s second largest internet market proposed tough e-commerce rules that could hurt Amazon and Walmart’s Flipkart.

Tuesday’s order is the third ongoing antitrust case investigation that India has opened against Google. Late last year, India’s antitrust watchdog opened an investigation into Google for allegedly abusing the dominant position of its app store to promote its payments service in the South Asian nation.

This is a developing story. More to follow…



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Brave’s non-tracking search engine is now in beta

Pro-privacy browser Brave, which has been testing its own brand search engine for several months — operating a waitlist where brave (ha!) early adopters could kick the tyres of an upstart alternative in Internet search — has now launched the tool, Brave Search, in global beta.

Users interested in checking out Brave’s non-tracking search engine, which is built on top of an independent index and touted as a privacy-safe alternative to surveillance tech products like Google search, will find it via Brave’s desktop and mobile browsers. It can also be reached from other browsers via search.brave.com — so doesn’t require switching to Brave’s browser to use.

Brave Search is being offered as one of multiple search options that users of the company’s eponymous browser can pick from (including Google’s search engine). But Brave says it will make it the default search in its browser later this year.

As we reported back in March, the company acquired technology and developers who had previously worked on Cliqz, a European anti-tracking search-browser combo which closed down in May 2020 — building on a technology they’d started to develop, called Tailcat, to form the basis of the Brave-branded search engine.

The (now beta) search engine has been tested by more than 100,000 “early access users” at this point, per Brave. It’s made this video ad to tout its “all in one” alternative to Google search + Chrome.

The company recently passed 32M monthly active users (up from 25M back in March) for its wider suite of products — which, as well as its flagship pro-privacy browser, includes a news reader (Brave News), and a Firewall+VPN service.

Brave also offers privacy-preserving Brave Ads for businesses wanting to reach its community of privacy-preferring users.

Growing public awareness of surveillance based business models has been building momentum for pro-privacy consumer tech for a number of years. And several players which started out with a strong focus on one particular pro-privacy product (such as a browser, search engine or email) have been expanding into a full suite of products — all under the same non-tracking umbrella.

As well as Brave, there’s the likes of DuckDuckGo — which offers non-tracking search but also a tracker blocker and an email inbox protector tool, among other products, and reckons it now has between 70M-100M users overall; and Proton, the maker of e2e-encrypted email service ProtonMail but also a cloud calendar and file storage as well as a VPN. The latter recently confirmed passing 50M users globally.

There is also Apple itself too, of course — a Big Tech giant that competes with Google and the adtech complex by promising users a privacy premium to drive sales of its hardware and services. (At the start of this year Apple said there are now over 1BN iOS users globally — and over 1.65BN Apple devices.)

Tl;dr: The market for privacy consumer tech is growing.

Still, even Apple doesn’t try to compete against Google search which perhaps underlines the scale of the challenge involved in trying to poach users from the search behemoth. (Albeit, Apple extracts massive payments from Google to preload the latter’s search engine onto iOS devices — which does conflict with (and complicate) its wider, pro-privacy, pro-user promises while also adding a nice revenue boost for Apple… ).

DuckDuckGo has, by contrast, been at the non-tracking search coalface for years — and turning a profit since 2014. Though clearly not in the same profit league as Apple. But, more recently, it’s also taken in rare tranches of external funding as its investors spy growing opportunity for private search.

Other signs of expanding public appetite to protect people’s information from commercial snoopers include the surge of usage for e2e encrypted alternatives to Facebook-owned WhatsApp — such as Signal — which saw a download spike earlier this year, after the advertising giant announced unilateral changes to WhatsApp’s terms of service.

Credible players that have amassed a community of engaged users around a core user privacy promise are well positioned to ride each new wave of privacy interest — and cross sell a suite of consumer products where they’ve been able to expand their utility. Hence Brave believing the time is right for it to dabble in search.

Commenting in a statement, Brendan Eich, CEO and co-founder of Brave, said: “Brave Search is the industry’s most private search engine, as well as the only independent search engine, giving users the control and confidence they seek in alternatives to big tech. Unlike older search engines that track and profile users, and newer search engines that are mostly a skin on older engines and don’t have their own indexes, Brave Search offers a new way to get relevant results with a community-powered index, while guaranteeing privacy. Brave Search fills a clear void in the market today as millions of people have lost trust in the surveillance economy and actively seek solutions to be in control of their data.”

Brave touts its eponymous search offering as having a number of differentiating features vs rivals (including smaller rivals) — such as its own index which it also says gives it independence from other search providers.

Why is having an independent index important? We put that question to Josep M. Pujol, chief of search at Brave, who told us: “There are plenty of incentives for censorship and biases, either by design, or what is even more difficult to combat, unintentional. The problem of search, and how people access the web, is that it is a mono-culture, and everybody knows that while it’s very efficient, it’s also very dangerous. A single disease can kill all the crops. The current landscape is not fail-tolerant, and this is something that even users are becoming aware of. We need more choices, not to replace Google or Bing, but to offer alternatives. More choices will entail more freedom and also get back to real competition, with checks and balances.

“Choice can only be achieved by being independent, as if we do not have our own index, then we are just a layer of paint on top of Google and Bing, unable to change much or anything in the results for users’ queries. Not having your own index, as with certain search engines, gives the impression of choice, but in reality such engine ‘skins’ are the same players as the big-two. Only by building our own index, which is a costly proposition, will we be in a position to offer true choice to the users for the benefit of all, whether they are Brave Search users or not.”

Although, for now, it’s worth noting that Brave is relying on some provision from other search providers — for specific queries and in areas like image search (where, for example, it says it’s currently fetching results from Microsoft-owned Bing) — to ensure its results achieve adequate relevancy.

Elsewhere it also says it’s relying upon anonymized contributions from the community to improve and refine results — and is seeking to live up to wider transparency claims vis-a-vis the search index (which it also claims has “no secret methods or algorithms to bias results”; and for which it will “soon” be offering “community-curated open ranking models to ensure diversity and prevent algorithmic biases and outright censorship”).

In another transparency step Brave is reporting the percentage of users’ queries that are independent by showing what it bills as “the industry’s first search independence metric” — meaning it displays the ratio of results coming exclusively from its own index.

“It is derived privately using the user’s browser as we do not build user profiles,” Brave notes in a press release. “Users can check this aggregate metric to verify the independence of their results and see how results are powered by our own index, or if third-parties are being used for long tail results while we are still in the process of building our index.”

It adds that Brave Search will “typically be answering most queries, reflected by a high independence metric”. Although if you’re performing an image search, for example, you’ll see the the independence metric take a hit (but Brave confirms this will not result in any tracking of users).

“[Transparency] is a key principle at Brave, and there will also be a global independence metric for Brave Search across all searches, which we will make publicly available to show how we are progressing towards complete independence,” it adds.

Example of Brave’s ‘independence metric’ for search results (Image credits: Brave)

On the monetization side, Brave says it will “soon” be offering both a paid ad-free version of search in the future and an ad-supported free version — while still pledging “fully anonymous” search. Though it specifies that it won’t be flipping the ad switch during the early beta phase.

“We will offer options for both ad-free paid search and ad-supported free search later,” it notes. “When we are ready, we will explore bringing private ads with BAT revenue share to search, as we’ve done for Brave user ads.”

Users of the search engine who do not also use Brave’s own browser will be served contextual ads.

“In Brave Search via the browser, strong privacy guarantees for opt-in ads are a norm and a brand value that we uphold,” adds Pujol, confirming that users of its search and browser are likely to get the same type of ad targeting.

Asked about pricing of the forthcoming ad-free version of the search engine he says: “Although we have not finalized the launch date or the price yet, our ad-free paid search will be affordable because we believe search, and access to information, should be available on fair terms for everyone.”

In an interesting recent development in Europe, Google — under pressure from antitrust regulators — has agreed to ditch a pay-to-play auction model for the choice screen it offers regional users of its Android platform, letting them pick a default search engine from list with a number of rivals and its own brand Google search. The move should expand the number of alternative search engines Android users in Europe are exposed to — and could help chip away at some of Google’s search marketshare.

Brave previously told us it would not participate in Google’s paid auction — but Pujol says that if the new model is “truly free to participate” it will likely take part in future.

“Google and free-to-participate seem difficult to believe, given plenty of precedents but if this model is indeed truly free to participate, without contracts or non-disclosure agreements, then we would likely participate,” he says. “After all, Brave Search is open to everyone who would like to use it, and we are open and happy to put Brave Search on any platform.”

“We have localized browsers throughout the European market, so in addition to growth via the Brave browser growing, we intend to grow Brave Search’s usage by marketing our best-in-class privacy on all media that reach prospective users,” he adds.



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Brave’s non-tracking search engine is now in beta

Pro-privacy browser Brave, which has been testing its own brand search engine for several months — operating a waitlist where brave (ha!) early adopters could kick the tyres of an upstart alternative in Internet search — has now launched the tool, Brave Search, in global beta.

Users interested in checking out Brave’s non-tracking search engine, which is built on top of an independent index and touted as a privacy-safe alternative to surveillance tech products like Google search, will find it via Brave’s desktop and mobile browsers. It can also be reached from other browsers via search.brave.com — so doesn’t require switching to Brave’s browser to use.

Brave Search is being offered as one of multiple search options that users of the company’s eponymous browser can pick from (including Google’s search engine). But Brave says it will make it the default search in its browser later this year.

As we reported back in March, the company acquired technology and developers who had previously worked on Cliqz, a European anti-tracking search-browser combo which closed down in May 2020 — building on a technology they’d started to develop, called Tailcat, to form the basis of the Brave-branded search engine.

The (now beta) search engine has been tested by more than 100,000 “early access users” at this point, per Brave. It’s made this video ad to tout its “all in one” alternative to Google search + Chrome.

The company recently passed 32M monthly active users (up from 25M back in March) for its wider suite of products — which, as well as its flagship pro-privacy browser, includes a news reader (Brave News), and a Firewall+VPN service.

Brave also offers privacy-preserving Brave Ads for businesses wanting to reach its community of privacy-preferring users.

Growing public awareness of surveillance based business models has been building momentum for pro-privacy consumer tech for a number of years. And several players which started out with a strong focus on one particular pro-privacy product (such as a browser, search engine or email) have been expanding into a full suite of products — all under the same non-tracking umbrella.

As well as Brave, there’s the likes of DuckDuckGo — which offers non-tracking search but also a tracker blocker and an email inbox protector tool, among other products, and reckons it now has between 70M-100M users overall; and Proton, the maker of e2e-encrypted email service ProtonMail but also a cloud calendar and file storage as well as a VPN. The latter recently confirmed passing 50M users globally.

There is also Apple itself too, of course — a Big Tech giant that competes with Google and the adtech complex by promising users a privacy premium to drive sales of its hardware and services. (At the start of this year Apple said there are now over 1BN iOS users globally — and over 1.65BN Apple devices.)

Tl;dr: The market for privacy consumer tech is growing.

Still, even Apple doesn’t try to compete against Google search which perhaps underlines the scale of the challenge involved in trying to poach users from the search behemoth. (Albeit, Apple extracts massive payments from Google to preload the latter’s search engine onto iOS devices — which does conflict with (and complicate) its wider, pro-privacy, pro-user promises while also adding a nice revenue boost for Apple… ).

DuckDuckGo has, by contrast, been at the non-tracking search coalface for years — and turning a profit since 2014. Though clearly not in the same profit league as Apple. But, more recently, it’s also taken in rare tranches of external funding as its investors spy growing opportunity for private search.

Other signs of expanding public appetite to protect people’s information from commercial snoopers include the surge of usage for e2e encrypted alternatives to Facebook-owned WhatsApp — such as Signal — which saw a download spike earlier this year, after the advertising giant announced unilateral changes to WhatsApp’s terms of service.

Credible players that have amassed a community of engaged users around a core user privacy promise are well positioned to ride each new wave of privacy interest — and cross sell a suite of consumer products where they’ve been able to expand their utility. Hence Brave believing the time is right for it to dabble in search.

Commenting in a statement, Brendan Eich, CEO and co-founder of Brave, said: “Brave Search is the industry’s most private search engine, as well as the only independent search engine, giving users the control and confidence they seek in alternatives to big tech. Unlike older search engines that track and profile users, and newer search engines that are mostly a skin on older engines and don’t have their own indexes, Brave Search offers a new way to get relevant results with a community-powered index, while guaranteeing privacy. Brave Search fills a clear void in the market today as millions of people have lost trust in the surveillance economy and actively seek solutions to be in control of their data.”

Brave touts its eponymous search offering as having a number of differentiating features vs rivals (including smaller rivals) — such as its own index which it also says gives it independence from other search providers.

Why is having an independent index important? We put that question to Josep M. Pujol, chief of search at Brave, who told us: “There are plenty of incentives for censorship and biases, either by design, or what is even more difficult to combat, unintentional. The problem of search, and how people access the web, is that it is a mono-culture, and everybody knows that while it’s very efficient, it’s also very dangerous. A single disease can kill all the crops. The current landscape is not fail-tolerant, and this is something that even users are becoming aware of. We need more choices, not to replace Google or Bing, but to offer alternatives. More choices will entail more freedom and also get back to real competition, with checks and balances.

“Choice can only be achieved by being independent, as if we do not have our own index, then we are just a layer of paint on top of Google and Bing, unable to change much or anything in the results for users’ queries. Not having your own index, as with certain search engines, gives the impression of choice, but in reality such engine ‘skins’ are the same players as the big-two. Only by building our own index, which is a costly proposition, will we be in a position to offer true choice to the users for the benefit of all, whether they are Brave Search users or not.”

Although, for now, it’s worth noting that Brave is relying on some provision from other search providers — for specific queries and in areas like image search (where, for example, it says it’s currently fetching results from Microsoft-owned Bing) — to ensure its results achieve adequate relevancy.

Elsewhere it also says it’s relying upon anonymized contributions from the community to improve and refine results — and is seeking to live up to wider transparency claims vis-a-vis the search index (which it also claims has “no secret methods or algorithms to bias results”; and for which it will “soon” be offering “community-curated open ranking models to ensure diversity and prevent algorithmic biases and outright censorship”).

In another transparency step Brave is reporting the percentage of users’ queries that are independent by showing what it bills as “the industry’s first search independence metric” — meaning it displays the ratio of results coming exclusively from its own index.

“It is derived privately using the user’s browser as we do not build user profiles,” Brave notes in a press release. “Users can check this aggregate metric to verify the independence of their results and see how results are powered by our own index, or if third-parties are being used for long tail results while we are still in the process of building our index.”

It adds that Brave Search will “typically be answering most queries, reflected by a high independence metric”. Although if you’re performing an image search, for example, you’ll see the the independence metric take a hit (but Brave confirms this will not result in any tracking of users).

“[Transparency] is a key principle at Brave, and there will also be a global independence metric for Brave Search across all searches, which we will make publicly available to show how we are progressing towards complete independence,” it adds.

Example of Brave’s ‘independence metric’ for search results (Image credits: Brave)

On the monetization side, Brave says it will “soon” be offering both a paid ad-free version of search in the future and an ad-supported free version — while still pledging “fully anonymous” search. Though it specifies that it won’t be flipping the ad switch during the early beta phase.

“We will offer options for both ad-free paid search and ad-supported free search later,” it notes. “When we are ready, we will explore bringing private ads with BAT revenue share to search, as we’ve done for Brave user ads.”

Users of the search engine who do not also use Brave’s own browser will be served contextual ads.

“In Brave Search via the browser, strong privacy guarantees for opt-in ads are a norm and a brand value that we uphold,” adds Pujol, confirming that users of its search and browser are likely to get the same type of ad targeting.

Asked about pricing of the forthcoming ad-free version of the search engine he says: “Although we have not finalized the launch date or the price yet, our ad-free paid search will be affordable because we believe search, and access to information, should be available on fair terms for everyone.”

In an interesting recent development in Europe, Google — under pressure from antitrust regulators — has agreed to ditch a pay-to-play auction model for the choice screen it offers regional users of its Android platform, letting them pick a default search engine from list with a number of rivals and its own brand Google search. The move should expand the number of alternative search engines Android users in Europe are exposed to — and could help chip away at some of Google’s search marketshare.

Brave previously told us it would not participate in Google’s paid auction — but Pujol says that if the new model is “truly free to participate” it will likely take part in future.

“Google and free-to-participate seem difficult to believe, given plenty of precedents but if this model is indeed truly free to participate, without contracts or non-disclosure agreements, then we would likely participate,” he says. “After all, Brave Search is open to everyone who would like to use it, and we are open and happy to put Brave Search on any platform.”

“We have localized browsers throughout the European market, so in addition to growth via the Brave browser growing, we intend to grow Brave Search’s usage by marketing our best-in-class privacy on all media that reach prospective users,” he adds.



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EU is now investigating Google’s adtech over antitrust concerns

EU antitrust authorities are finally taking a broad and deep look into Google’s adtech stack and role in the online ad market — confirming today that they’ve opened a formal investigation.

Google has already been subject to three major EU antitrust enforcements over the past five years — against Google Shopping (2017), Android (2018) and AdSense (2019). But the European Commission has, until now, avoided officially wading into the broader issue of its role in the adtech supply chain. (The AdSense investigation focused on Google’s search ad brokering business, though Google claims the latest probe represents that next stage of that 2019 enquiry, rather than stemming from a new complaint).

The Commission said that the new Google antitrust investigation will assess whether it has violated EU competition rules by “favouring its own online display advertising technology services in the so called ‘ad tech’ supply chain, to the detriment of competing providers of advertising technology services, advertisers and online publishers”.

Display advertising spending in the EU in 2019 was estimated to be approximately €20BN, per the Commission.

“The formal investigation will notably examine whether Google is distorting competition by restricting access by third parties to user data for advertising purposes on websites and apps, while reserving such data for its own use,” it added in a press release.

Earlier this month, France’s competition watchdog fined Google $268M in a case related to self-preferencing within the adtech market — which the watchdog found constituted an abuse by Google of a dominant position for ad servers for website publishers and mobile apps.

In that instance Google sought a settlement — proposing a number of binding interoperability agreements which the watchdog accepted. So it remains to be seen whether the tech giant may seek to push for a similar outcome at the EU level.

There is one cautionary signal in that respect in the Commission’s press release which makes a point of flagging up EU data protection rules — and highlighting the need to take into account the protection of “user privacy”.

That’s an interesting side-note for the EU’s antitrust division to include, given some of the criticism that France’s Google adtech settlement has attracted — for risking cementing abusive user exploitation (in the form of adtech privacy violations) into the sought for online advertising market rebalancing.

Or as Cory Doctorow neatly explains it in this Twitter thread: “The last thing we want is competition in practices that harm the public.”

Aka, unless competition authorities wise up to the data abuses being perpetuated by dominant tech platforms — such as through enlightened competition authorities engaging in close joint-working with privacy regulators (in the EU this is, at least, possible since there’s regulation in both areas) — there’s a very real risk that antitrust enforcement against Big (ad)Tech could simply supercharge the user-hostile privacy abuses that surveillance giants have only been able to get away with because of their market muscle.

So, tl;dr, ill-thought through antitrust enforcement actually risks further eroding web users’ rights… and that would indeed be a terrible outcome. (Unless you’re Google; then it would represent successfully playing one regulator off against another at the expense of users.)

The need for competition and privacy regulators to work together to purge Big Tech market abuses has become an active debate in Europe — where a few pioneering regulators (like German’s FCO) are ahead of the pack.

The UK’s Competition and Markets Authority (CMA) and Information Commissioner’s Office (ICO) also recently put out a joint statement — laying out their conviction that antitrust and data protection regulators must work together to foster a thriving digital economy that’s healthy across all dimensions — i.e. for competitors, yes, but also for consumers.

A recent CMA proposed settlement related to Google’s planned replacement for tracking cookies — aka ‘Privacy Sandbox’, which has also been the target of antitrust complaints by publishers — was notable in baking in privacy commitments and data protection oversight by the ICO in addition to the CMA carrying out its competition enforcement role.

It’s fair to say that the European Commission has lagged behind such pioneers in appreciating the need for synergistic regulatory joint-working, with the EU’s antitrust chief roundly ignoring — for example — calls to block Google’s acquisition of Fitbit over the data advantage it would entrench, in favor of accepting a few ‘concessions’ to waive the deal through.

So it’s interesting to see the EU’s antitrust division here and now — at the very least — virtue signalling an awareness of the problem of regional regulators approaching competition and privacy as if they exist in firewalled silos.

Whether this augurs the kind of enlightened regulatory joint working — to achieve holistically healthy and dynamic digital markets — which will certainly be essential if the EU is to effectively grapple with surveillance capitalism very much remains to be seen. But we can at least say that the inclusion of the below statement in an EU antitrust division press release represents a change of tone (and that, in itself, looks like a step forward…):

“Competition law and data protection laws must work hand in hand to ensure that display advertising markets operate on a level playing field in which all market participants protect user privacy in the same manner.”

Returning to the specifics of the EU’s Google adtech probe, the Commission says it will be particularly examining:

  • The obligation to use Google’s services Display & Video 360 (‘DV360′) and/or Google Ads to purchase online display advertisements on YouTube.
  • The obligation to use Google Ad Manager to serve online display advertisements on YouTube, and potential restrictions placed by Google on the way in which services competing with Google Ad Manager are able to serve online display advertisements on YouTube.
  • The apparent favouring of Google’s ad exchange “AdX” by DV360 and/or Google Ads and the potential favouring of DV360 and/or Google Ads by AdX.
  • The restrictions placed by Google on the ability of third parties, such as advertisers, publishers or competing online display advertising intermediaries, to access data about user identity or user behaviour which is available to Google’s own advertising intermediation services, including the Doubleclick ID.
  • Google’s announced plans to prohibit the placement of third party ‘cookies’ on Chrome and replace them with the “Privacy Sandbox” set of tools, including the effects on online display advertising and online display advertising intermediation markets.
  • Google’s announced plans to stop making the advertising identifier available to third parties on Android smart mobile devices when a user opts out of personalised advertising, and the effects on online display advertising and online display advertising intermediation markets.

Commenting on the investigation in a statement, Commission EVP and competition chief, Margrethe Vestager, added:

“Online advertising services are at the heart of how Google and publishers monetise their online services. Google collects data to be used for targeted advertising purposes, it sells advertising space and also acts as an online advertising intermediary. So Google is present at almost all levels of the supply chain for online display advertising. We are concerned that Google has made it harder for rival online advertising services to compete in the so-called ad tech stack. A level playing field is of the essence for everyone in the supply chain. Fair competition is important — both for advertisers to reach consumers on publishers’ sites and for publishers to sell their space to advertisers, to generate revenues and funding for content. We will also be looking at Google’s policies on user tracking to make sure they are in line with fair competition.”

Contacted for comment on the Commission investigation, a Google spokesperson sent us this statement:

“Thousands of European businesses use our advertising products to reach new customers and fund their websites every single day. They choose them because they’re competitive and effective. We will continue to engage constructively with the European Commission to answer their questions and demonstrate the benefits of our products to European businesses and consumers.”

Google also claimed that publishers keep around 70% of the revenue when using its products — saying in some instances it can be more.

It also suggested that publishers and advertisers often use multiple technologies simultaneously, further claiming that it builds its own technologies to be interoperable with more than 700 rival platforms for advertisers and 80 rival platforms for publishers.



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