Forty-nine states and the District of Columbia are pushing an antitrust investigation against Google – gpgmail


Fifty attorneys general are pushing forward with an antitrust investigation against Google, led by the Texas state Attorney General Ken Paxton.

In an announcement on the steps of the U.S. Supreme Court building, Paxton and a gathering of attorneys general said that the focus of the investigation would be on Google’s advertising practices, but that other points of inquiry could be included in the investigation.

The investigation into Google comes as big technology companies find themselves increasingly under the regulatory microscope for everything from anticompetitive business practices to violations of users’ privacy and security, to accusations of political bias.

Last week, the New York State Attorney General launched an investigation into Facebook.

Action from the states follows movement from the federal government which is investigating just about every major technology company including Google, Apple, Amazon, and Facebook.

This story is developing.




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Peloton’s 29 secret weapons – gpgmail


Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I wrote about a new e-commerce startup, Pietra. Before that, I wrote about the flurry of IPO filings.

Remember, you can send me tips, suggestions and feedback to kate.clark@Gpgmail.com or on Twitter @KateClarkTweets. If you don’t subscribe to Startups Weekly yet, you can do that here.

What’s new?

Peloton revealed its S-1 this week, taking a big step toward an IPO expected later this year. The filing was packed with interesting tidbits, including that the company, which manufacturers internet-connected stationary bikes and sells an affiliated subscription to its growing library of on-demand fitness content, is raking in more than $900 million in annual revenue. Sure, it’s not profitable, and it’s losing an increasing amount of money to sales and marketing efforts, but for a company that many people wrote off from the very beginning, it’s an impressive feat.

Despite being a hardware, media, interactive software, product design, social connection, apparel and logistics company, according to its S-1, the future of Peloton relies on its talent. Not the employees developing the bikes and software but the 29 instructors teaching its digital fitness courses. Ally Love, Alex Toussaint and the 27 other teachers have developed cult followings, fans who will happily pay Peloton’s steep $39 per month content subscription to get their daily dose of Ben or Christine.

“To create Peloton, we needed to build what we believed to be the best indoor bike on the market, recruit the best instructors in the world, and engineer a state-of-the-art software platform to tie it all together,” founder and CEO John Foley writes in the IPO prospectus. “Against prevailing conventional wisdom, and despite countless investor conference rooms full of very smart skeptics, we were determined for Peloton to build a vertically integrated platform to deliver a seamless end-to-end experience as physically rewarding and addictive as attending a live, in-studio class.”

Peloton succeeded in poaching the best of the best. The question is, can they keep them? Will competition in the fast-growing fitness technology sector swoop in and scoop Peloton’s stars?

In other news

Last week I published a long feature on the state of seed investing in the Bay Area. The TL;DR? Mega-funds are increasingly battling seed-stage investors for access to the hottest companies. As a result, seed investors are getting a little more creative about how they source deals. It’s a dog-eat-dog world out there, and everyone wants a stake in The Next Big Thing. Read the story here.

Rounds of the week

Time to Disrupt

Don’t miss out on our flagship Disrupt, which takes place October 2-4. It’s the quintessential tech conference for anyone focused on early-stage startups. Join more than 10,000 attendees — including over 1,200 exhibiting startups — for three jam-packed days of programming. We’re talking four different stages with interactive workshops, Q&A sessions and interviews with some of the industry’s top tech titans, founders, investors, movers and shakers. Check out our list of speakers and the Disrupt agenda. I will be there interviewing a bunch of tech leaders, including Bastian Lehmann and Charles Hudson. Buy tickets here.

Listen

This week on Equity, gpgmail’s venture capital-focused podcast, we had Floodgate’s Iris Choi on to discuss Peloton’s upcoming IPO. You can listen to it here. Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple Podcasts, Overcast and Spotify.

Learn

We published a number of new deep dives on Extra Crunch, our paid subscription product, this week. Here’s a quick look at the top stories:




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U.S. border officials are increasingly denying entry to travelers over others’ social media – gpgmail


Travelers are increasingly being denied entry to the United States as border officials hold them accountable for messages, images and video on their devices sent by other people.

It’s a bizarre set of circumstances that has seen countless number of foreign nationals rejected from the U.S. after friends, family, or even strangers send messages, images, or videos over social media sites like Facebook and Twitter, and encrypted messaging apps like WhatsApp, which are then downloaded to the traveler’s phone.

The latest case saw a Lebanese national and would-be Harvard freshman denied entry to the U.S. just before the start of the school year.

Immigration officers at Boston Logan International Airport are said to have questioned Ismail Ajjawi, 17, for his religion and religious practices, he told the school newspaper The Harvard Crimson. The officers who searched his phone and computer reportedly took issue with his friends’ social media activity.

Ajjawi’s visa was canceled and he was summarily deported — for someone else’s views.

The United States border is a bizarre space where U.S. law exists largely to benefit the immigration officials who decide whether or not to admit or deny entry to travelers, and few protect the travelers themselves. Both U.S. citizens and foreign nationals alike are subject to unwarranted searches and few rights to free speech, and many have limited access to legal counsel.

That has given U.S. border officials a far wider surface area to deny entry to travelers — sometimes for arbitrary reasons.

On a typical day, U.S. Customs & Border Protection processes 1.13 million passengers by plane, sea and land and deny entry to over 760 people. Sometimes a denial is clear, such as a past criminal conviction or the wrong documentation. But all too often, no specific reasons are given, and there are no grounds to appeal.

A U.S. immigration form describing why a traveler was denied entry to the U.S. (Image: Abed Ayoub/Twitter)

CBP also claims to have what critics say is broadly unconstitutional powers to search travelers’ phones — including those of U.S. citizens — at the border without needing a warrant. Last year, CBP searched 30,000 travelers’ devices — close to four times the number from three years prior — without any need for reasonable suspicion.

Complicating matters, the Trump administration in June began to demand that foreigners who apply for U.S. visas disclose their social media handles and profiles. Some 15 million are expected to fall under the new rule.

Summer Lopez, senior director of free expression programs at PEN America, a human rights nonprofit, said in a statement that the immigration policy on social media “demonstrates all too well the damage these ill-conceived policies can do.”

“That should not be the price of entrance to the U.S., let alone that one’s friends should have to censor themselves as well,” said Lopez.

But Ajjawi’s denied entry is not an isolated case.

Abed Ayoub, legal and policy director at the American-Arab Anti-Discrimination Committee, said device searches and subsequent denials of entry had become the “new normal” over the past year.

“We hear about this happening to Arab students and Muslim students coming into the U.S. today,” he told gpgmail. Although all travelers are subject to having their devices searched, Ayoub said the government was “holding [the Arab and Muslim] community to a different level” than other backgrounds.

Ayoub said he’s had clients that have been turned away at the border for content found in their WhatsApp messages.

“It’s probably the most popular app in the Middle East,” he said. Because WhatsApp automatically downloads received images and videos to a user’s phone, any questionable content — even sent unsolicitedly — under a border official’s search could be enough to deny the traveler entry.

In one tweet, Ayoub posted a photo of an expedited removal form from one of his clients — also a student with U.S. visa — who was denied entry for an image he received in a WhatsApp group. The student strenuously denied any personal connection to the images and argued it had been automatically saved to his phone. The border official wrote that as a result of the device search the student was “inadmissible” to the U.S. The student was only a couple of semesters away from graduating, but a rejection meant the student can no longer return to the U.S.

“This is part of the backdoor ‘Muslim ban’,” Ayoub said, referring to a controversial executive order signed by President Trump in January 2017, which barred citizens from seven predominantly Muslim countries entry to the U.S.

“We don’t hear of other other individuals being denied because of WhatsApp or because of what’s on the social media,” he said.




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After a breakout year, looking ahead to the future of podcasting – gpgmail


2019 has been a breakout year for podcasting. According to Edison Research’s Infinite Dial report, more than half of Americans have now listened to a podcast, and an estimated 32% listen monthly (up from 26% last year). This is the largest yearly increase since this data started being tracked in 2008. Podcast creation also continues to grow, with more than 700,000 podcasts and 29 million podcast episodes, up 27% from last year.

Thanks to this growing listener base, big companies are finally starting to pay attention to the space — Spotify plans to spend $500M on acquisitions this year, and already acquired content studio Gimlet, tech platform Anchor, and true crime network Parcast for a combined $400M. In the past week, Google added playable podcasts to search results, Spotify released an analytics dashboard for podcasters, and Pandora launched a tool for podcasters to submit their shows.

We’ve been going to Podcast Movement, the largest annual industry conference, for three years, and have watched the conference grow along with the industry — reaching 3,000 attendees in 2019. Given the increased buzz around the space, we were expecting this year’s conference to have a new level of energy and professionalism, and we weren’t disappointed. We’ve summarized five top takeaways from the conference, from why podcast ads are hard to scale to why so many celebrities are launching their own shows.

Rise of celebrity podcasters boosts listenership

We’ve officially entered the age of celebrity podcasters. After early successes like WTF with Marc Maron (2009), Alec Baldwin’s Here’s The Thing (2011), and Anna Faris’ Unqualified (2015), top talent is flooding into the space. In 2017, 15% of Apple’s href=””https://www.allaccess.com/net-news/archive/story/172268/apple-podcasts-charts-top-20-most-downloaded-podca”> top 20 most-downloaded podcasts of the year were hosted by celebrities or influencers — this jumped to 32% of the top 25 in 2018. And of all the new shows that launched in 2018, 48% of the top 25 were celebrity-hosted.

Screen Shot 2019 08 21 at 1.21.50 PMThough podcasts are undermonetized compared to other forms of media, talent agents now consider them to be an important part of a well-rounded content strategy. Dan Ferris from CAA tells his clients to think of podcasting as a way of connecting with fans that is “much more intimate than social media.” Podcasts also help celebrities find a new audience. Ben Davis from WME said that while his client David Dobrik has a smaller audience on his podcast than on YouTube (1.5M downloads per episode versus 6M views per video), the podcast helps him reach a new group of listeners who stumble upon his show on the Apple Podcast charts.

While some podcast veterans grumble about the rise of celebrity talk shows, famous podcasters are good for the industry as a whole. Advertisers are drawn to the space by the opportunity to get to access A-list talent at lower prices. One recent example is Endeavor Audio’s fiction show Blackout, which starred Rami Malek, who was fresh off an Oscar win. Endeavor’s head of sales Charlie Emerson said brands might have to sign a “seven or eight figure deal” to advertise alongside Malek’s content in other forms of media. Other podcasters also benefit from new listeners brought into the medium by their favorite stars — a Westwood One survey in fall 2018 found that 60% of podcast listeners report discovering shows via social media, where celebrities and influencers have huge existing audiences to push content to.

Screen Shot 2019 08 21 at 1.39.31 PM

Creator backlash against “walled garden” apps

Paid listening apps represent a fairly small percentage of podcast listenership, with production platform Anchor estimating that Apple Podcasts and Spotify control more than 70% of listenership. A venture-backed company called Luminary is trying to change this — it raised $100M to launch a “Netflix for podcasts” this spring. Consumers pay $7.99/month to access Luminary-exclusive shows alongside podcasts that are free on other apps. Because podcasts have RSS feeds, distributors like Luminary can easily grab free content and put it behind a paywall. The platform, not the creator, benefits from this monetization.

Within days of Luminary’s launch, prominent podcasters and media companies (The New York Times, Gimlet, and more) requested their shows be removed from the app. It’s interesting to note that YouTube has a similar premium plan — for $11.99/month, users can access and download ad-free videos. Unlike Luminary, however, YouTube, pays creators a cut of the revenue from these subscriptions based on how frequently their content is viewed.

Unsurprisingly, creator sentiment is more positive toward platforms like Spotify and Pandora . Though these companies do make money from premium subscribers who listen to podcasts, creators can choose whether or not to submit their shows. And podcasters benefit from making their shows discoverable to the existing user base of these platforms, which already dominate “earshare.” Spotify alone has 232 million MAUs, which dwarfs the 90 million people in the U.S. who listen to a podcast monthly.

Screen Shot 2019 08 21 at 1.46.24 PM

Industry anxiety around maintaining quality at scale

Podcast ad revenue has been scaling quickly, with $480M in spend last year and a projected $680M this year. Over the past four years, ad revenue has scaled at a 65% CAGR, and this growth is expected to continue. In its early days, the podcast ad market was largely been driven by D2C brands — you’ve probably heard hundreds of Casper, Blue Apron, and Madison Reed ads. However, bigger brands are also starting to enter podcasting (Geico, Capital One, and Progressive made the top 10 list for June 2019) due to the growing audience scale and increased precision around targeting and attribution.

Screen Shot 2019 08 21 at 1.48.00 PM

While many attendees were excited by the massive growth in ad revenue, others worried that it may kill what makes podcasting special. They’re particularly concerned that podcasts may go the way of online video, with annoying, generic, low CPM ads. Podcast hosts typically read their own ads, and are often true fans of the product — they share personal stories instead of reciting brand talking points. This results in premium CPMs compared to most digital media — AdvertiseCast’s 2019 survey found an average CPM of $18 for a 30-second podcast ad and $25 for a 60-second ad, more than 2x the average CPM on other digital platforms.

Screen Shot 2019 08 21 at 1.49.12 PM

While these ads are effective, they’re time-consuming and expensive to produce. Big brands interested in podcast ads often expect to reuse radio spots — they aren’t used to the process of crafting and approving a host-read ad that may only reach 10,000 listeners. Podcasters, meanwhile, value their trust with listeners and don’t want to spam them with loud, unoriginal radio ads. The tension between maintaining the quality of ads while scaling quantity was an underlying theme of most monetization discussions, and industry veterans disagree on how it will play out.

Despite the growth in ad revenue and relatively high CPMs, the industry is significantly undermonetized. Using data from Nielsen, IAB, and Edison, we calculated that podcasts monetize through advertisements at only $0.01 per listener hour — less than ten times the rate of radio. Podcast monetization per listener hour has increased over the past year, up 25% by our calculations, but still substantially lags all other forms of media.

Screen Shot 2019 08 21 at 2.01.56 PM

Why are podcasts so undermonetized? Unlike many other forms of media, the dominant distribution platform (Apple Podcasts) has no ad marketplace. Creators have historically had to approach brands themselves or sign with podcast networks to construct custom ad deals, and the “long tail” of podcasters were unable to monetize. This is finally changing. Anchor, which reported in January that it powers 40% of new podcasts, has an ad marketplace that has doubled the number of podcasts that are running ads. Other popular platforms like Radio Public have launched programs for small podcasters to opt-in to ad placements.

The second major hurdle in monetization is attribution. Podcasts have historically monetized through direct response campaigns — a podcaster provides a special URL or promo code for listeners to use when making a purchase. However, many people listen to podcasts when exercising or driving, and can’t write down the promo code or visit the URL immediately. These listeners might remember the product and make a purchase later, but the podcaster won’t get the attribution. Thomas Mancusi of Audioboom estimated that this happens in 50–60% of purchases driven by podcast ads.

Startups are trying to bring better adtech into podcasting to fix this issue.Chartable is one example — the company installs trackers to match a listener’s IP address with a purchaser’s IP address, allowing podcasters to claim attribution for listeners who don’t use their URL or promo code. Chartable currently runs on 10,000 shows, and the early results are so promising that ad agencies expect to see higher CPMs and significantly more spend in the space.

Podcast fans of the future ≠ podcast fans today

As podcasting grows, the listener base is diversifying. Edison Research looked into data on “rookie” listeners (listening for six months or less) and “veteran” listeners (listening for 3+ years), and found significant demographic differences. Only 37% of veterans are female, compared to 53% of rookies. While the plurality of veterans (43%) are age 35–54, 54% of rookies are age 12–34. Rookies are also 1.6x more likely to say they most often listen to podcasts on Spotify, Pandora, or SoundCloud (43% versus 27% of veterans). And social media is an important way that rookies discover podcasts — 52% have found a podcast from video and 46% from audio on social media, compared to 41% and 37% for veterans.

Screen Shot 2019 08 21 at 1.41.53 PM

These new listeners will have a profound impact on the future of podcasting, in both the type of content produced and the way it’s distributed. Industry experts are already noting significant new demand for female-hosted podcasts, as well as audio dramas that appeal to young people looking for a fast-paced, suspenseful story. They’re advising podcasters to share clips of their content on social media, and to leverage broader listening platforms like YouTube and Soundcloud for distribution.

International markets also represent an enormous opportunity for growth. Most podcast listeners today live in the U.S. or China, but content producers are starting to see significant demand elsewhere. Castbox’s Valentina Kaledina said that many fans abroad have resorted to listening in their non-native language, with the top 100 shows in each country comprising a mix of English and local language. Adonde Media’s Martina Castro, who recently conducted the first listener survey on Spanish-language podcast fans, said that 53% of the survey’s 2100 respondents reported listening to podcasts in English — and only 20% of them use Apple Podcasts.

Screen Shot 2019 08 21 at 1.43.21 PM

Larger podcast producers are beginning to translate shows for non-English-speaking markets. Wondery CEO Hernan Lopez announced at the conference that the company’s hit show Dr. Death is now available in seven languages. Lopez noted that it was an expensive process, and he doesn’t expect the shows to generate profit in the near future. However, he believes that Wondery will eventually see a significant return from investing in the development of new podcast markets — and if they do, other podcast companies will likely follow in their footsteps.




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Twitter blocks state-controlled media outlets from advertising on its social network – gpgmail


Twitter is now blocking state-run media outlets from advertising on its platform.

The new policy was announced just hours after the company identified an information operation involving hundreds of accounts linked to China as part of an effort to “sow political discord” around events in Hong Kong after weeks of protests in the region. Over the weekend over 1 million Hong Kong residents took to the streets to protest what they see as an encroachment by the mainland Chinese government over their rights.

State-funded media enterprises that do not rely on taxpayer dollars for their financing and don’t operate independently of the governments that finance them will no longer be allowed to advertise on the platform, Twitter said in a statement. That leaves a big exception for outlets like the Associated Press, the British Broadcasting Corp., Public Broadcasting Service, and National Public Radio, according to reporting from BBC reporter, Dave Lee.

 

The affected accounts will be able to use Twitter, but can’t access the company’s advertising products, Twitter said in a statement.

“We believe that there is a difference between engaging in conversation with accounts you choose to follow and the content you see from advertisers in your Twitter experience which may be from accounts you’re not currently following. We have policies for both but we have higher standards for our advertisers,” Twitter said in its statement.

The policy applies to news media outlets that are financially or editorially controlled by the state, Twitter said. The company said it will make its policy determinations on the basis of media freedom and independence including editorial control over articles and video, the financial ownership of the publication, the influence or interference governments may exert over editors, broadcasters and journalists, and political pressure or control over the production and distribution process.

Twitter said the advertising rules wouldn’t apply to entities that are focused on entertainment, sports, or travel, but if there’s news in the mix, the company will block advertising access.

Affected outlets have 30 days before they’re removed from Twitter and the company is halting all existing campaigns.

State media has long been a source of disinformation and was cited as part of the Russian campaign to influence the 2016 election. Indeed, Twitter has booted state-financed news organizations before. In October 2017, the company banned Russia Today and Sputnik from advertising on its platform (although a representative from RT claimed that Twitter encouraged it to advertise ahead of the election).

 




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Snapchat beats a dead horse – gpgmail


Hey. This is Week-in-Review, where I give a heavy amount of analysis and/or rambling thoughts on one story while scouring the rest of the hundreds of stories that emerged on gpgmail this week to surface my favorites for your reading pleasure.

Last week, I talked about how Netflix might have some rough times ahead as Disney barrels towards it.


The big story

There is plenty to be said about the potential of smart glasses. I write about them at length for gpgmail and I’ve talked to a lot of founders doing cool stuff. That being said, I don’t have any idea what Snap is doing with the introduction of a third-generation of its Spectacles video sunglasses.

The first-gen were a marketing smash hit, their sales proved to be a major failure for the company which bet big and seemingly walked away with a landfill’s worth of the glasses.

Snap’s latest version of Spectacles were announced in Vogue this week, they are much more expensive at $380 and their main feature is that they have two cameras which capture images in light depth which can lead to these cute little 3D boomerangs. One one hand, it’s nice to see the company showing perseverance with a tough market, on the other it’s kind of funny to see them push the same rock up the hill again.

Snap is having an awesome 2019 after a laughably bad 2018, the stock has recovered from record lows and is trading in its IPO price wheelhouse. It seems like they’re ripe for something new and exciting, not beautiful yet iterative.

The $150 Spectacles 2 are still for sale, though they seem quite a bit dated-looking at this point. Spectacles 3 seem to be geared entirely towards women, and I’m sure they made that call after seeing the active users of previous generations, but given the write-down they took on the first-generation, something tells me that Snap’s continued experimentation here is borne out of some stubbornness form Spiegel and the higher-ups who want the Snap brand to live in a high fashion world and want to be at the forefront of an AR industry that seems to have already moved onto different things.

Send me feedback
on Twitter @lucasmtny or email
lucas@Gpgmail.com

On to the rest of the week’s news.

tumblr phone sold

Trends of the week

Here are a few big news items from big companies, with green links to all the sweet, sweet added context:

  • WordPress buys Tumblr for chump change
    Tumblr, a game-changing blogging network that shifted online habits and exited for $1.1 billion just changed hands after Verizon (which owns gpgmail) unloaded the property for a reported $3 million. Read more about this nightmarish deal here.
  • Trump gives American hardware a holiday season pass on tariffs 
    The ongoing trade war with China generally seems to be rough news for American companies deeply intertwined with the manufacturing centers there, but Trump is giving U.S. companies a Christmas reprieve from the tariffs, allowing certain types of hardware to be exempt from the recent rate increases through December. Read more here.
  • Facebook loses one last acquisition co-founder
    This week, the final remnant of Facebook’s major acquisitions left the company. Oculus co-founder Nate Mitchell announced he was leaving. Now, Instagram, WhatsApp and Oculus are all helmed by Facebook leadership and not a single co-founder from the three companies remains onboard. Read more here.

GAFA Gaffes

How did the top tech companies screw up this week? This clearly needs its own section, in order of badness:

  1. Facebook’s turn in audio transcription debacle:
    [Facebook transcribed users’ audio messages without permission]
  2. Google’s hate speech detection algorithms get critiqued:
    [Racial bias observed in hate speech detection algorithm from Google]
  3. Amazon has a little email mishap:
    [Amazon customers say they received emails for other people’s orders]

Adam Neumann (WeWork) at gpgmail Disrupt NY 2017

Extra Crunch

Our premium subscription service had another week of interesting deep dives. My colleague Danny Crichton wrote about the “tech” conundrum that is WeWork and the questions that are still unanswered after the company filed documents this week to go public.

…How is margin changing at its older locations? How is margin changing as it opens up in places like India, with very different costs and revenues? How do those margins change over time as a property matures? WeWork spills serious amounts of ink saying that these numbers do get better … without seemingly being willing to actually offer up the numbers themselves…

Here are some of our other top reads this week for premium subscribers. This week, we published a major deep dive into the world’s next music unicorn and we dug deep into marketplace startups.

Sign up for more newsletters in your inbox (including this one) here.




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Amazon customers say they received emails for other people’s orders – gpgmail


Users have said they are receiving emails from Amazon containing invoices and order updates on other customers, gpgmail has learned.

Jake Williams, founder of cybersecurity firm Rendition Infosec, raised the alarm after he received an email from Amazon addressed to another customer with their name, postal address, and their order details.

Williams said he ordered something months ago which recently became available for shipping. He checked the email headers to make sure it was a genuine message.

“I think they legitimately intended to email me a notification that my item was shipping early,” he said. “I just think they screwed something up in the system and sent the updates to the wrong people.”

He said the apparent security lapse was worrying because emails about orders sent to the wrong place is a “serious breach of trust” that can reveal private information about a customer’s life, such as sexual orientation, proclivities, or other personal information

Several other Amazon customers also said they received emails seemingly meant for other people.

“I made an order yesterday afternoon and received her email last night,” another customer who tweeted about the mishap told gpgmail. “Luckily I’m not a malicious person but that’s a huge security issue,” she said.

Another customer tweeted out about receiving an email meant for someone else. He said he spoke to Amazon customer service who said they will investigate additional security issues.

“Hope you didn’t send my sensitive account info to someone else,” he added.

And, one other customer posted a tweet thread about the issue, saying they spoke to a supervisor about the issue who gave a “nonchalant” response, she wrote. She said the supervisor said the issue happens frequently.

A spokesperson for Amazon did not return a request for comment when we asked how many customers were affected and if the company plans on informing customers of the breach. If we hear back, we’ll update.

It’s the second security lapse in a year. In November the company emailed customers saying a “technical error” had exposed an unknown number of their email addresses. When asked about specifics, the notoriously secretive company declined to comment further.




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Cloudflare says cutting off customers like 8chan is an IPO ‘risk factor’ – gpgmail


Networking and web security giant Cloudflare says the recent 8chan controversy may be an ongoing “risk factor” for its business on the back of its upcoming initial public offering.

The San Francisco-based company and former Battlefield finalist, which filed its IPO paperwork with the U.S. Securities and Exchange Commission on Thursday, earlier this month took the rare step of pulling the plug on one of its customers, 8chan, an anonymous message board linked to recent domestic terrorist attacks in El Paso, Texas and Dayton, Ohio, which killed 31 people. The site is also linked to the shootings in New Zealand, which killed 50 people.

8chan became the second customer to have its service cut off by Cloudflare in the aftermath of the attacks. The first and other time Cloudflare booted one of its customers was neo-Nazi website The Daily Stormer in 2017, after it claimed the networking giant was secretly supportive of the website.

Cloudflare, which provides web security and denial-of-service protection for websites, recognizes those customer cut-offs as a risk factor for investors buying shares in the company’s common stock.

“Activities of our paying and free customers or the content of their websites and other Internet properties could cause us to experience significant adverse political, business, and reputational consequences with customers, employees, suppliers, government entities, and other third parties,” the filing said. “Even if we comply with legal obligations to remove or disable customer content, we may maintain relationships with customers that others find hostile, offensive, or inappropriate.”

Cloudflare had long taken a stance of not policing who it provides service to, citing freedom of speech. In a 2015 interview with ZDNet, chief executive Matthew Prince said he didn’t ever want to be in a position where he was making “moral judgments on what’s good and bad,” and would instead defer to the courts.

“If a final court order comes down and says we can’t do something… governments have tanks and guns,” he said.

But since Prince changed his stance on both The Daily Stormer and 8chan, the company recognized it “experienced significant negative publicity” in the aftermath.

“We are aware of some potential customers that have indicated their decision to not subscribe to our products was impacted, at least in part, by the actions of certain of our paying and free customers,” said the filing. “We may also experience other adverse political, business and reputational consequences with prospective and current customers, employees, suppliers, and others related to the activities of our paying and free customers, especially if such hostile, offensive, or inappropriate use is high profile.”

Cloudflare has also come under fire in recent months for allegedly supplying web protection services to sites that promote and support terrorism, including al-Shabaab and the Taliban, both of which are covered under U.S. Treasury sanctions.

In response, the company said it tries “to be neutral,” but wouldn’t comment specifically on the matter.


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Enterprise 2019 ticket includes a free pass to Disrupt SF – gpgmail


Shout out to all the savvy enterprise software startuppers. Here’s a quick, two-part money-saving reminder. Part one: TC Sessions: Enterprise 2019 is right around the corner on September 5, and you have only two days left to buy an early-bird ticket and save yourself $100. Part two: for every Session ticket you buy, you get one free Expo-only pass to gpgmail Disrupt SF 2019.

Save money and increase your ROI by completing one simple task: buy your early-bird ticket today.

About 1,000 members of enterprise software’s powerhouse community will join us for a full day dedicated to exploring the current and future state of enterprise software. It’s certainly tech’s 800-pound gorilla — a $500 billion industry. Some of the biggest names and brightest minds will be on hand to discuss critical issues all players face — from early-stage startups to multinational conglomerates.

The day’s agenda features panel discussions, main-stage talks, break-out sessions and speaker Q&As on hot topics including intelligent marketing automation, the cloud, data security, AI and quantum computing, just to name a few. You’ll hear from people like SAP CEO Bill McDermott; Aaron Levie, Box co-founder; Jim Clarke, director of Quantum Hardware at Intel and many, many more.

Customer experience is always a hot topic, so be sure to catch this main-stage panel discussion with Amit Ahuja (Adobe), Julie Larson-Green (Qualtrics) and Peter Reinhardt (Segment):

The Trials and Tribulations of Experience Management: As companies gather more data about their customers and employees, it should theoretically improve their experience, but myriad challenges face companies as they try to pull together information from a variety of vendors across disparate systems, both in the cloud and on prem. How do you pull together a coherent picture of your customers, while respecting their privacy and overcoming the technical challenges?

TC Sessions: Enterprise 2019 takes place in San Francisco on September 5. Take advantage of this two-part money-saving opportunity. Buy your early-bird ticket by August 16 at 11:59 p.m. (PT) to save $100. And score a free Expo-only pass to gpgmail Disrupt SF 2019 for every ticket you buy. We can’t wait to see you in September!

Interested in sponsoring TC Sessions: Enterprise? Fill out this form and a member of our sales team will contact you.


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