Showing posts with label cenosrship. Show all posts
Showing posts with label cenosrship. Show all posts

Wednesday, 13 January 2021

Glenn Greenwald on the destruction of Parler

 How Silicon Valley, in a Show of Monopolistic Force, Destroyed Parler

In the last three months, tech giants have censored political speech and journalism to manipulate U.S. politics, while liberals, with virtual unanimity, have cheered.


Glenn Greenwald


Critics of Silicon Valley censorship for years heard the same refrain: tech platforms like Facebook, Google and Twitter are private corporations and can host or ban whoever they want. If you don’t like what they are doing, the solution is not to complain or to regulate them. Instead, go create your own social media platform that operates the way you think it should.

The founders of Parler heard that suggestion and tried. In August, 2018, they created a social media platform similar to Twitter but which promised far greater privacy protections, including a refusal to aggregate user data in order to monetize them to advertisers or algorithmically evaluate their interests in order to promote content or products to them. They also promised far greater free speech rights, rejecting the increasingly repressive content policing of Silicon Valley giants.

Over the last year, Parler encountered immense success. Millions of people who objected to increasing repression of speech on the largest platforms or who had themselves been banned signed up for the new social media company.

As Silicon Valley censorship radically escalated over the past several months — banning pre-election reporting by The New York Post about the Biden family, denouncing and deleting multiple posts from the U.S. President and then terminating his access altogether, mass-removal of right-wing accounts — so many people migrated to Parler that it was catapulted to the number one spot on the list of most-downloaded apps on the Apple Play Store, the sole and exclusive means which iPhone users have to download apps. “Overall, the app was the 10th most downloaded social media app in 2020 with 8.1 million new installs,” reported TechCrunch.

It looked as if Parler had proven critics of Silicon Valley monopolistic power wrong. Their success showed that it was possible after all to create a new social media platform to compete with Facebook, Instagram and Twitter. And they did so by doing exactly what Silicon Valley defenders long insisted should be done: if you don’t like the rules imposed by tech giants, go create your own platform with different rules.


But today, if you want to download, sign up for, or use Parler, you will be unable to do so. That is because three Silicon Valley monopolies — Amazon, Google and Apple — abruptly united to remove Parler from the internet, exactly at the moment when it became the most-downloaded app in the country.

If one were looking for evidence to demonstrate that these tech behemoths are, in fact, monopolies that engage in anti-competitive behavior in violation of antitrust laws, and will obliterate any attempt to compete with them in the marketplace, it would be difficult to imagine anything more compelling than how they just used their unconstrained power to utterly destroy a rising competitor.


The united Silicon Valley attack began on January 8, when Apple emailed Parler and gave them 24 hours to prove they had changed their moderation practices or else face removal from their App Store. The letter claimed: “We have received numerous complaints regarding objectionable content in your Parler service, accusations that the Parler app was used to plan, coordinate, and facilitate the illegal activities in Washington D.C. on January 6, 2021 that led (among other things) to loss of life, numerous injuries, and the destruction of property.” It ended with this warning:

To ensure there is no interruption of the availability of your app on the App Store, please submit an update and the requested moderation improvement plan within 24 hours of the date of this message. If we do not receive an update compliant with the App Store Review Guidelines and the requested moderation improvement plan in writing within 24 hours, your app will be removed from the App Store.

The 24-hour letter was an obvious pretext and purely performative. Removal was a fait accompli no matter what Parler did. To begin with, the letter was immediately leaked to Buzzfeed, which published it in full. A Parler executive detailed the company’s unsuccessful attempts to communicate with Apple. “They basically ghosted us,” he told me. The next day, Apple notified Parler of its removal from App Store. “We won’t distribute apps that present dangerous and harmful content,” said the world’s richest company, and thus: “We have now rejected your app for the App Store.”

It is hard to overstate the harm to a platform from being removed from the App Store. Users of iPhones are barred from downloading apps onto their devices from the internet. If an app is not on the App Store, it cannot be used on the iPhone. Even iPhone users who have already downloaded Parler will lose the ability to receive updates, which will shortly render the platform both unmanageable and unsafe.

In October, the House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law issued a 425-page report concluding that Amazon, Apple, Facebook and Google all possess monopoly power and are using that power anti-competitively. For Apple, they emphasized the company’s control over iPhones through its control of access to the App Store. As Ars Technica put it when highlighting the report’s key findings:

Apple controls about 45 percent of the US smartphone market and 20 percent of the global smartphone market, the committee found, and is projected to sell its 2 billionth iPhone in 2021. It is correct that, in the smartphone handset market, Apple is not a monopoly. Instead, iOS and Android hold an effective duopoly in mobile operating systems.

However, the report concludes, Apple does have a monopolistic hold over what you can do with an iPhone. You can only put apps on your phone through the Apple App Store, and Apple has total gatekeeper control over that App Store—that's what Epic is suing the company over. . . .

The committee found internal documents showing that company leadership, including former CEO Steve Jobs, "acknowledged that IAP requirement would stifle competition and limit the apps available to Apple's customers." The report concludes that Apple has also unfairly used its control over APIs, search rankings, and default apps to limit competitors' access to iPhone users.

Shortly thereafter, Parler learned that Google, without warning, had also “suspended” it from its Play Store, severely limiting the ability of users to download Parler onto Android phones. Google’s actions also meant that those using Parler on their Android phones would no longer receive necessary functionality and security updates.

It was precisely Google’s abuse of its power to control its app device that was at issue “when the European Commission deemed Google LLC as the dominant undertaking in the app stores for the Android mobile operating system (i.e. Google Play Store) and hit the online search and advertisement giant with €4.34 billion for its anti-competitive practices to strengthen its position in various of other markets through its dominance in the app store market.”

The day after a united Apple and Google acted against Parler, Amazon delivered the fatal blow. The company founded and run by the world’s richest man, Jeff Bezos, used virtually identical language as Apple to inform Parler that its web hosting service (AWS) was terminating Parler’s ability to have AWS host its site: “Because Parler cannot comply with our terms of service and poses a very real risk to public safety, we plan to suspend Parler’s account effective Sunday, January 10th, at 11:59PM PST.” Because Amazon is such a dominant force in web hosting, Parler has thus far not found a hosting service for its platform, which is why it has disappeared not only from app stores and phones but also from the internet.

On Thursday, Parler was the most popular app in the United States. By Monday, three of the four Silicon Valley monopolies united to destroy it.


With virtual unanimity, leading U.S. liberals celebrated this use of Silicon Valley monopoly power to shut down Parler, just as they overwhelmingly cheered the prior two extraordinary assertions of tech power to control U.S. political discourse: censorship of The New York Post’s reporting on the contents of Hunter Biden’s laptop, and the banning of the U.S. President from major platforms. Indeed, one would be hard-pressed to find a single national liberal-left politician even expressing concerns about any of this, let alone opposing it.

Not only did leading left-wing politicians not object but some of them were the ones who pleaded with Silicon Valley to use their power this way. After the internet-policing site Sleeping Giants flagged several Parler posts that called for violence, Rep. Alexandria Ocasio-Cortez asked: “What are @Apple and @GooglePlay doing about this?” Once Apple responded by removing Parler from its App Store — a move that House Democrats just three months earlier warned was dangerous anti-trust behavior — she praised Apple and then demanded to know: “Good to see this development from @Apple. @GooglePlay what are you going to do about apps being used to organize violence on your platform?”

The liberal New York Times columnist Michelle Goldberg pronounced herself “disturbed by just how awesome [tech giants’] power is” and added that “it’s dangerous to have a handful of callow young tech titans in charge of who has a megaphone and who does not.” She nonetheless praised these “young tech titans” for using their “dangerous” power to ban Trump and destroy Parler. In other words, liberals like Goldberg are concerned only that Silicon Valley censorship powers might one day be used against people like them, but are perfectly happy as long as it is their adversaries being deplatformed and silenced (Facebook and other platforms have for years banned marginalized people like Palestinians at Israel’s behest, but that is of no concern to U.S. liberals).

That is because the dominant strain of American liberalism is not economic socialism but political authoritarianism. Liberals now want to use the force of corporate power to silence those with different ideologies. They are eager for tech monopolies not just to ban accounts they dislike but to remove entire platforms from the internet. They want to imprison people they believe helped their party lose elections, such as Julian Assange, even if it means creating precedents to criminalize journalism.

World leaders have vocally condemned the power Silicon Valley has amassed to police political discourse, and were particularly indignant over the banning of the U.S. President. German Chancellor Angela Merkel, various French ministers, and especially Mexican President Andrés Manuel López Obrador all denounced the banning of Trump and other acts of censorship by tech monopolies on the ground that they were anointing themselves “a world media power.” The warnings from López Obrador were particularly eloquent:


Even the ACLU — which has rapidly transformed from a civil liberties organization into a liberal activist group since Trump’s election — found the assertion of Silicon Valley’s power to destroy Parler deeply alarming. One of that organization’s most stalwart defenders of civil liberties, lawyer Ben Wizner, told The New York Times that the destruction of Parler was more “troubling” than the deletion of posts or whole accounts: “I think we should recognize the importance of neutrality when we’re talking about the infrastructure of the internet.”

Yet American liberals swoon for this authoritarianism. And they are now calling for the use of the most repressive War on Terror measures against their domestic opponents. On Tuesday, House Homeland Security Chair Bennie Thompson (D-MS) urged that GOP Sens. Ted Cruz and Josh Hawley “be put on the no-fly list,” while The Wall Street Journal reported that “Biden has said he plans to make a priority of passing a law against domestic terrorism, and he has been urged to create a White House post overseeing the fight against ideologically inspired violent extremists and increasing funding to combat them.”

So much of this liberal support for the attempted destruction of Parler is based in utter ignorance about that platform, and about basic principles of free speech. I’d be very surprised if more than a tiny fraction of liberals cheering Parler’s removal from the internet have ever used the platform or know anything about it other than the snippets they have been shown by those seeking to justify its destruction and to depict it as some neo-Nazi stronghold.

Parler was not founded, nor is it run, by pro-Trump, MAGA supporters. The platform was created based in libertarian values of privacy, anti-surveillance, anti-data collection, and free speech. Most of the key executives are more associated with the politics of Ron Paul and the CATO Institute than Steve Bannon or the Trump family. One is a Never Trump Republican, while another is the former campaign manager of Ron Paul and Rand Paul. Among the few MAGA-affiliated figures is Dan Bongino, an investor. One of the key original investors was Rebekah Mercer.

The platform’s design is intended to foster privacy and free speech, not a particular ideology. They minimize the amount of data they collect on users to prevent advertiser monetization or algorithmic targeting. Unlike Facebook and Twitter, they do not assess a user’s preferences in order to decide what they should see. And they were principally borne out of a reaction to increasingly restrictive rules on the major Silicon Valley platforms regarding what could and could not be said.

Of course large numbers of Trump supporters ended up on Parler. That’s not because Parler is a pro-Trump outlet, but because those are among the people who were censored by the tech monopolies or who were angered enough by that censorship to seek refuge elsewhere.

It is true that one can find postings on Parler that explicitly advocate violence or are otherwise grotesque. But that is even more true of Facebook, Google-owned YouTube, and Twitter. And contrary to what many have been led to believe, Parler’s Terms of Service includes a ban on explicit advocacy of violence, and they employ a team of paid, trained moderators who delete such postings. Those deletions do not happen perfectly or instantaneously — which is why one can find postings that violate those rules — but the same is true of every major Silicon Valley platform.

Indeed, a Parler executive told me that of the thirteen people arrested as of Monday for the breach at the Capitol, none appear to be active users of Parler. The Capitol breach was planned far more on Facebook and YouTube. As Recode reported, while some protesters participated in both Parler and Gab, many of the calls to attend the Capitol were from YouTube videos, while many of the key planners “have continued to use mainstream platforms like Twitter, Facebook, and YouTube.” The article quoted Fadi Quran, campaign director at the human rights group Avaaz, as saying: “In DC, we saw QAnon conspiracists and other militias that would never have grown to this size without being turbo-charged by Facebook and Twitter.” 

And that’s to say nothing of the endless number of hypocrisies with Silicon Valley giants feigning opposition to violent rhetoric or political extremism. Amazon, for instance, is one of the CIA’s most profitable partners, with a $600 million contract to provide services to the agency, and it is constantly bidding for more. On Facebook and Twitter, one finds official accounts from the most repressive and violent regimes on earth, including Saudi Arabia, and pages devoted to propaganda on behalf of the Egyptian regime. Does anyone think these tech giants have a genuine concern about violence and extremism?


So why did Democratic politicians and journalists focus on Parler rather than Facebook and YouTube? Why did Amazon, Google and Apple make a flamboyant showing of removing Parler from the internet while leaving much larger platforms with far more extremism and advocacy of violence flowing on a daily basis?

In part it is because these Silicon Valley giants — Google, Facebook, Amazon, Apple — donate enormous sums of money to the Democratic Party and their leaders, so of course Democrats will cheer them rather than call for punishment or their removal from the internet. Part of it is because Parler is an upstart, a much easier target to try to destroy than Facebook or Google. And in part it is because the Democrats are about to control the Executive Branch and both houses of Congress, leaving Silicon Valley giants eager to please them by silencing their adversaries. This corrupt motive was made expressly clear by long-time Clinton operative Jennifer Palmieri:

The nature of monopolistic power is that anti-competitive entities engage in anti-trust illegalities to destroy rising competitors. Parler is associated with the wrong political ideology. It is a small and new enough platform such that it can be made an example of. Its head can be placed on a pike to make clear that no attempt to compete with existing Silicon Valley monopolies is possible. And its destruction preserves the unchallengeable power of a tiny handful of tech oligarchs over the political discourse not just of the United States but democracies worldwide (which is why Germany, France and Mexico are raising their voices in protest).

No authoritarians believe they are authoritarians. No matter how repressive are the measures they support — censorship, monopoly power, no-fly lists for American citizens without due process — they tell themselves that those they are silencing and attacking are so evil, are terrorists, that anything done against them is noble and benevolent, not despotic and repressive. That is how American liberals currently think, as they fortify the control of Silicon Valley monopolies over our political lives, exemplified by the overnight destruction of a new and popular competitor.

Monday, 24 June 2019

REVEALED: The Guardian in vcahoots with the secret services


The Guardian’s direct collusion with media censorship by secret services exposed

Minutes of Ministry of Defence (MoD) meetings have confirmed the role of Britain’s Guardian newspaper as a mouthpiece for the intelligence agencies.

By Thomas Scripps



22 June 2019




Last week, independent journalist Matt Kennard revealed that the paper’s deputy editor, Paul Johnson, was personally thanked by the Defence and Security Media Advisory Notice (or D-Notice) committee for integrating the Guardian into the operations of the security services.

Minutes of a meeting in 2018 read: “The Chairman thanked Paul Johnson for his service to the Committee. Paul had joined the Committee in the wake of the Snowden affair and had been instrumental in re-establishing links with the Guardian.”

D-Notices are used by the British state to veto the publication of news damaging to its interests. The slavish collusion of the mainstream media ensures that such notices function as gag orders.

Johnson joined the committee in 2014 and evidently excelled in his performance. A separate set of minutes from the first meeting attended by Johnson records the Guardian’s close collaboration with military officials.

Under a section detailing “advice” given by the intelligence agencies to the media, the document reads “most of the occurrences and requests for advice were related to further publications by The Guardian of extracts from the Snowden documents. The Secretary reported that the engagement of DPBAC [Defence Press and Broadcasting Advisory Committee] Secretariat with The Guardian had continued to strengthen during the last six months, with regular dialogues between the Secretary and Deputy Secretaries and Guardian journalists.”

The secretary and deputy secretaries were Air Vice-Marshal Andrew Vallance CB OBE, Air Commodore David Adams and Brigadier Geoffrey Dodds OBE. The chairman was Peter Watkins CBE, the MoD’s director general of Strategy, Security and Policy Operations.

Under the direction of these military intelligence handlers, the Guardian played a role in bringing other newspapers internationally to heel. The minutes note, “because of an agreement between The Guardian and allied publications overseas to coordinate their respective disclosures of Snowden material, advice given to the Guardian has been passed on to the New York Times and others, helping guide the disclosures of these outlets.”

In September 2014, the Guardian allowed the former head of GCHQ (Government Communications Headquarters) Sir David Omand to publish an article titled, “Edward Snowden’s leaks are misguided—they risk exposing us to cyber-attacks.”

He declared, “Journalists are not best placed to identify security risks; we have to trust those who oversee the intelligence-gathering.”

In 2016, Paul Johnson used an unprecedented interview with a serving head of MI5, Andrew Parker, to propagandize for the antidemocratic, warmongering interests of British imperialism.

These facts are damning proof of the Guardian’s total integration into the propaganda wing of the MoD following its involvement in the WikiLeaks and Snowden files releases. Indeed, the work of WikiLeaks and its founder Julian Assange has served to expose and confirm the deep ties of the entire mainstream media to the military-intelligence complex.

The Guardian has been viewed historically as the voice of British liberal dissent, critical of the worst excesses of British capitalism at home and abroad. But it has always acted as a political policeman—filtering the news “responsibly” and channelling the resulting anger into impotent moral appeals to the state and other authorities. Its dealings with Assange and Snowden transformed political allegiance into direct subservience. Its liberal, critical pretensions unravelled in a matter of a few months.

When Assange looked to the Guardian and other papers internationally such as the New York Times to publish the Afghan and Iraq war logs and secret US diplomatic cables in 2010, the editors’ main concern was damage control. Within a month of an initial publication of documents, the Guardian had broken off relations with Assange—publishing an infamous December 17 editorial “WikiLeaks: the man and the idea.” It stated that the Guardian had only agreed to publish “a small number of cables” to control the political fall-out from the details of murder, torture, espionage and corruption they revealed and give it the opportunity of “editing, contextualising, explanation and redaction.”

The main purpose of the editorial was to support Assange’s extradition to Sweden on trumped-up allegations of sexual misconduct relating to a trip to that country a few months earlier.

In an op-ed piece published last month by former Guardian editor Alan Rusbridger, he assumes to take the moral high ground by claiming that WikiLeaks issued leaks unredacted, and wanted to continue this practise, in contrast with his “responsible” journalism. An editorial published immediately prior to Rusbridger’s article, again supporting Assange’s extradition to Sweden to face “charges” that don’t exist, stated, “The Guardian disapproved of the mass publication of unredacted documents ... and broke with Mr. Assange over the issue.”

This is a self-serving lie. WikiLeaks has pointed out that the editorial “conveniently leaves out” that it was the Guardian—through a book authored by David Leigh and Luke Harding—that disclosed the password to the digital file Assange had given them in confidence. The book was a hatchet job on WikiLeaks. The rights to it were sold, becoming the basis of a slanderous Hollywood movie.

When NSA contractor Edward Snowden leaked files detailing blanket state surveillance of the world’s population in 2013, the Guardian set out to play the same “responsible” role. Asked afterwards if the paper had held back from publishing anything about GCHQ and UK security services because of “worries about national security,” the ever-pliant Mr. Rusbridger replied, “Yes, we’ve held back a great deal, we’ve published a small amount of what we have read.”

This time, however, the Guardian was told by the security services that even rigorously filtering the Snowden’s revelations was not good enough. It must stop publishing immediately.

The country’s top civil servant, Cabinet Secretary Sir Jeremy Heywood, called the Guardian’s offices to pass on the demands of then Prime Minister David Cameron that the Snowden material either be returned to the government or destroyed. Editors were threatened with legal action if they did not comply.

Rusbridger later explained, “The tone was steely, if cordial, but there was an implicit threat that others within government and Whitehall favoured a far more draconian approach.” This is a masterpiece of understatement. Emails obtained by the Associated Press in 2014 showed that this was an operation conducted in intimate collusion between the government, the British security services and the US National Security Agency, including then Director of National Intelligence James Clapper.

In the end, two GCHQ security officials directly oversaw the Guardian’s destruction of its own material. Three Guardian staff members, including Paul Johnson himself, destroyed the hard drives in the Guardian’s possession with angle grinders and other equipment provided by GCHQ officials.

The Guardian had been put in a position it never wanted. Its liberal reputation, and previous disclosures, had made it the newspaper of choice for WikiLeaks’ and Snowden’s revelations. But the scale of what had been uncovered threatened the fundamental interests of British and US imperialism. It therefore rolled over when the government told it to cease and desist, before taking its place alongside the rest of the right-wing media on the secret committee responsible for press censorship and propaganda dissemination.

One of Assange’s persecutors-in-chief, Luke Harding, enjoys the most intimate relations with the security services. His notorious November 2018 fabrication, claiming Assange held meetings with US President Donald Trump’s former campaign manager Paul Manafort, was published in the Guardian just two weeks after Johnson was thanked for “re-establishing links” with the MoD. The story was widely cited and formed a keystone of the efforts, spearheaded by the Democrats in the US, to present WikiLeaks and “Russian interference” as the causes of Trump’s 2016 election victory.

Harding played a central role in silencing questions over the UK government’s bogus account of the Skripal affair in mid-2018. These events were the subject of at least one D-notice, issued while Paul Johnson was on the responsible committee.

An unintended but valuable consequence of the WikiLeaks exposures has been to explode the fraud of the Guardian’s claim to any critical independence from the state. The crimes of the major imperialist powers against the world’s population made available by WikiLeaks were so great that they could not be neutralised, even by the Guardian’s professional gatekeepers of the “truth.” Not a word published in this imperialist propaganda sheet can ever be taken at face value.


Saturday, 13 January 2018

Facebook moves to stomp on freedom of information

Facebook overhauls news feed to focus on friends and family

Fewer news articles. More baby photos. And continuing angst about Facebook's role in the world

11 January, 2018

Your Facebook feed will soon start to look a little different.

But this isn't just about you. It's also about the power and influence of the world's dominant social network.
CEO Mark Zuckerberg said Thursday that Facebook is overhauling the news feedto prioritize posts from family and friends, as opposed to those from brands and publishers.
That means its 2 billion users will see fewer news articles, viral videos and other media content. Instead, they'll see more baby pictures and status updates from aunts, childhood friends and co-workers. The change is the biggest tweak the social network has made to the news feed -- essentially the soul of Facebook -- in years.
The idea is to let you have more "meaningful interactions" and to try to make sure you don't suffer from the time you spend on Facebook. Last month, the company released a report on how people consume content on Facebook and on the consequences of that behavior. Passively scrolling and reading things, it found, can have negative effects, while being more interactive -- "liking" posts and writing comments -- can be positive.
"We feel a responsibility to make sure our services aren't just fun to use, but also good for people's well-being," Zuckerberg wrote on his Facebook page. "I'm changing the goal I give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions."
Facebook has been under intense scrutiny as it grapples with its scale and influence. Its almighty algorithms have the power to decide what people see online, and the thinking is that can have an effect on how they view the world. The company, along with Twitter and Google, has been in the hot seat with lawmakers for the role its platform played in the 2016 election. Russian trolls abused the service to try to sway the results and sow discord among Americans.
Earlier this month, Zuckerberg said his latest annual challenge is to "fix" some of the problems that have spread on Facebook, like hate and abuse. He teased the upcoming change by saying one of the goals is "making sure that time spent on Facebook is time well spent."

'If we do the right thing...'

On Thursday, he also acknowledged that, in the short term, the company's business could take a hit as a result of the change. Publishers, businesses and other brands rely on Facebook's new feed for distribution.
"By making these changes, I expect the time people spend on Facebook and some measures of engagement will go down," he wrote. "But I also expect the time you do spend on Facebook will be more valuable."
That acknowledgement of the potential hardship on the business side rattled investors. On Friday morning, Facebook shares were down more than 4 percent.
But those worries may be overblown, according to one Wall Street firm. In a note to investors Friday, Evercore ISI offered a reassuring perspective.
"Facebook appears to be trading engagement for a higher-quality user experience," Evercore's analysts wrote. "Ultimately, we see the announced change as a likely long-term positive [that] comes at a time when Facebook is making strategic decisions from a position of strength."
Clearly, Facebook felt this was an important move to make, even with the disruption.
"If we do the right thing," Zuckerberg wrote, "I believe that will be good for our community and our business over the long term too."

There may be some truth in this




Facebook Plunge Drags Nasdaq Red, VIX Chaotic Ahead Of Open


12 January, 2018

Update: Facebook continues to tumble further - down over 5.5%...
 
https://www.zerohedge.com/sites/default/files/inline-images/20180112_vix2.png
 
And is weighing both the S&P and Nasdaq down pre-market...

https://www.zerohedge.com/sites/default/files/inline-images/20180112_vix1.png

Additionally, VIX is chaotic ahead of the open as the machines desperately try to bid the market green for the open.
 
https://www.zerohedge.com/sites/default/files/inline-images/20180112_vix.png

Stifel analyst Scott Devitt downgraded the recommendation on Facebook Inc. to hold from buy.
*  *  *
Facebook has erased most of its year-to-date gains in pre-market trading as investors see CEO Zuckerberg's decision to shift news feeds to personal posts and away from businesses and media outlets creating a risk to the company’s financial performance.

As we detailed overnight, Facebook is making major changes to its flagship social network, shifting users’ news feeds back toward posts from friends and family and away from businesses and media outlets -- a transition that is likely to mean people spend less time on the site.

In a post Thursday, Chief Executive Officer Mark Zuckerberg said community feedback has shown that public content has been “crowding out the personal moments that lead us to connect more with each other.” The goal of the product teams will be to help Facebook’s more than 2 billion monthly users find content that will lead to more meaningful social interactions, he said.
"By making these changes, I expect the time people spend on Facebook and some measures of engagement will go down," Zuckerberg wrote. "But I also expect the time you do spend on Facebook will be more valuable. And if we do the right thing, I believe that will be good for our community and our business over the long term too."

As Bloomberg points out, the changes promised today aren’t entirely new -- Facebook has been shifting the content on its news feed toward posts from friends and family and away from brands and publications for more than a year.

A large part of brands and media companies’ strategies is to post articles and videos from their pages to engage consumers -- items that aren’t considered "meaningful interactions" between people. Downplaying those posts from brands and businesses may put revenue at risk, said James Cakmak, an analyst at Monness Crespi Hardt & Co.
“There will be less opportunity to expose Facebook users to brands," Cakmak said.

Stifel analyst Scott Devitt (buy, PT $195) has "less conviction in our call vs any other time in our coverage history" as FB either addresses the platform issues despite the effect on monetization or ignores the challenges and risks the franchise.


The move could exacerbate slowing trends in user engagement, although the trends don’t take into account Instagram or WhatsApp usage, which have both grown rapidly.

The reaction to Zuckerberg's self-censorship decision is clear...

https://www.zerohedge.com/sites/default/files/inline-images/20180112_fb.png

Shareholders clearly prefer more fake news to less.

As we concluded previously, ironically, the newsfeed overhaul is also said to be "an attempt to encourage more sharing and personal connecting, amid a backlash with many people worrying about social media sucking up time and damaging users’ mental health" according to the FT.

In reality, it will only succeed in further alienating an already deeply polarized American population.

Yet while it remains to be seen what impact on Facebook, or Zuckerberg's 2020 presidential ambitions, this latest foray into censorship has, the biggest losers are clear.

Last year, the company tested separating friends and family posts from those posted by businesses and publishers. It created a tab called “Explore” for those other posts in six countries including Sri Lanka, Slovakia and Cambodia. What happened next? Publishers in those countries complained that traffic fell dramatically.

At the time, Adam Mosseri, head of newsfeed, said Facebook currently had no plans to roll this test out further in other countries and said it was unfortunate that some had "mistakenly made that interpretation." It now appears that this "test" is about to applied to everyone.

asd