Facebook as a Monopoly

Facebook is on the way to its journey from a personal social network to virtual reality metaverse. However, of late, it faces challenges. The price of its stock declined by 26 per cent on account of poor financial results. Its business of targeted advertising has become vulnerable due to change in Apple’s privacy policies. It also faces a threat from the legislators in the EU and US who may introduce similar measures.

The Federal Trade Commission (FTC) claims that Facebook followed a ‘buy or bury’ strategy. It acquired WhatsApp and Instagram to protect its monopoly power. It continues to follow buy or bury strategies to move into VR. The FTC offered enough evidence that buys of WhatsApp and Instagram were to neutralise actual and likely future competitors.

However, FTC case faces a convincing argument. Facebook is free and so there is no question of it being a monopoly. What is to be proved that Facebook is charging predatory low prices to drive out competitors. Or alternatively it is prohibitively costly and hurts the consumers. Facebook being free, runs the argument, is harmless. The FTC feels that even a free monopoly could be harmful. It is difficult to prove this. Even then Facebook exercises monopoly power in the market of personal social network.

The suit ties up the company in a legal battle and puts tremendous pressure on the revenues. FB earns close to 99 per cent of its revenues in advertising — say $118 billion in 2021, with $39.4 billion in profits.

Innovation in AI through Applied Maths

In data science and AI, there is a tendency to use off-the-shelf algorithms. However, for innovation, one has to create new algorithms or has to tweak the existing algorithms. It presupposes knowledge of mathematics. You just cannot do it by mere programming.

ASIC or application specific integrated design is an area that has well-proven, established algorithms. Data science still has not reached this stage. Here applied maths is still emerging.

The area of a triangle can be calculated using a well-established formula or algorithm. However, if we have to calculate an irregular area with several curves and line boundaries, this area would require subdivision in such a way that computing is possible. Area could be subdivided many ways, and each throws up an algorithm. However, one solution could be the most efficient one.

In AI and data science, there are many possibilities across diverse industries. This calls for applied maths skills and not computer science skills. A data scientist from programming background can survive for a few years, but faces issues later.

Data science courses should be under the maths department, rather than computer science department.

Dark Web

The internet we use is the surface web, which is indexable. The deep web is protected and is accessible through authentication, say the use of passwords. The dark web is not available through regular browsers. It is accessed through specialised networks.

The confidential communication of the government is generally channelised through non-indexible part of the internet.

You will be surprised that only 10 per cent of internet is surface web, whereas 90 per cent of internet is deep and dark web.

Dark is web is accessed through a browser Tor. It provides anonymity to the users.

One plus point is the freedom from censorship and freedom of expression that the dark web provides. At the same time, it is a market place for many dubious activities, such as selling stolen data (say credit card information), selling spurious drugs and narcotics, selling weapons and pornography.

Dark web URLs are complex and hexadecimal alpha-numeric strings. Surface web is indexed in the subdomain. domain, top-level domain format. Dark web strings have onion extensions, say a1.b2.c3.d4.e5.f6 onion. These addresses are accessed through Tor.

Dark web could have both state actors, and malicious actors. It could sell both legal and illegal things. There could be crypto trades, even when banned. Even payment of transactions could be through crypto.

Cyber security experts keep an eye on data floating on dark web. Banks and financial institutions monitor dark web. There are attacks on SWIFT network for foreign transactions.

Organisations upskill people monitor processes and keep an eye on technology to be safe.

Alternative Social Media

The beginning of this millennium was marked by Orkut, a cool social media network. Orkut has become defunct. Currently, we have Facebook and Instagram. However, Facebook too has admitted that for the first time in its 18 year history, it is losing users. It is taking efforts to retain the users; especially the teens and young users.

Many small networks have emerged. These have unbundled the offerings of the big networks. These new apps may not be as big as the Facebook products in terms of reach and size, but they are fast scaling up. Verticalisation of social media has to happen — through format, language, user segments or use cases.

Today’s platforms are broad-based. These are not adequate. There is scope for niche social media platforms. They can penetrate deeper. They cater to diverse segments. They have more nuances in a given segment.

Some user demand is generated by the adverse effects of the existing platforms. And then the innovative pace of the big tech is slow. The youngsters feel that a platform must provide them a real connect. They want a dedicated platform. Existing platforms have a composite audience. A niche should be carved out for them.

There is scope for vernacular platforms. There could be dialect-based OTT platforms. Podcasting falls between full-fledged social media and OTT channels like Netflix. There are others in-between platforms such as YouTube and Kuku FM.

Uable is a social network for teenagers. Swell is a social audio app. Qlan helps users to reach their tribe or squad or community better and faster. India mimics Silicon Valley. It keeps pace with it. It aspires to go ahead of them by noticing the change in behaviour of the audience and change in technology.

Bitcoin or Crypto Transaction

Cryptos use blockchain or similar electronic ledgers. In private cryptocurrencies, there is no control issuing authority. The blockchain is used for crowd-sourced verifications of the authenticity of transactions.

Every crypto coin mined has a unique code. In case of Bitcoin, it can be broken down into a hundred million different unique codes, and that code is associated with the specific wallet that contains the coin.

When a crypto transaction is made, the crowd reviews the blockchain to ascertain whether a wallet that possesses a specific coin is transferring that coin to a different wallet. Literally, each and every transaction made can be reviewed. Thus history of every specific coin can be traced.

Here there is anonymity of transaction because the owner of a digital crypto wallet need not be known. Any entity could own any number of crypto coins.

BookMyShow Stream

BookMyShow business suffered as online ticketing got adversely affected in the last couple of years on account of the pandemic. BookMyShow initiated movie purchases and rent business called transaction video on demand (TVoD). It all started in February, 2021. In a year that followed it streamed 1900 titles. It is estimated that the revenue from this space, i.e. pay-per-view or TVoD is Rs.1890 crore in 2022.

This space falls between the theatrical release and OTT streaming. Hollywood studios too tie up with BookMyShow stream to release their movies. It is a revenue sharing model.

The ticketing app of BookMyShow too hosts the Stream service. Most users are from Metros and A grade cities. They are mostly young. They belong to the larger cohort of SVoD subscribers.

If you miss seeing a movie in a theatre, this is an alternative channel. They are willing to pay for the premium content.

Pricing may not favour TVoD in India. Higher pricing is not an incentive to see the movie. Indian consumers are not willing to pay for online content. There is a threat of piracy too.

What may attract the viewers is the timing of the release. A highly anticipated product may attract viewers. Hollywood studios release on TVoD, but Indian studios are not so enthusiastic. Anyway, it is an extra revenue stream. It follows 6-8 weeks of theatrical window.

Location Data

Location data as a service facilitates automobile industry, logistics firms, retail, transport and food delivery companies. Let us call it a world of spatial intelligence.

Mapping was so far confined to the outdoors. However, indoor mapping too is valuable as a service. Major portion of people’s time is spent indoors. Technology is employed to find way and track indoor asset and space usage optimisation. So far only a small fraction of buildings have been mapped. Here Technologies have introduced Here Indoor Map as a service.

In autonomous cars, car makers rely heavily on location data, and mapping platforms. It is also important in transport industry for fleet operators. It is also valuable for food delivery apps and public transport users.

Here Technologies is the world’s leading location platform company. It makes the navigation easier. It has released a global library of 3D lidar (light detection and ranging) data. It has use in 3D modeling apps.

Mapping is much more than the display on the screen of a smart phone or car. It is about creating a digital twin of the world we live in. There are endless possibilities.

It allows cars to drive autonomously. It vests the cars with Level 3 automated driving capabilities.

Here Technologies has developed Here HD Live Map.

Popular Entry-level Courses

Job markets have been churning. Many traditional jobs have lost favour, say in travel, retail, hospitality and manufacturing. Many new jobs have found favour — in IT, technology, digital marketing and data analytics. To up skill, people take to professional certificates. Coursera is one of the largest online learning platforms. Its top 10 professional certificates in 2021 are data analytics, UX Design, project management, IT support, data science, social media marketing, data analyst, full stack cloud developer and Salesforce sales operations.

There is heavy enrolment to these courses. Google data analytics is the most popular course in India. Social media marketing by Facebook and Sales Operations by Salesforce too are highly popular.

These courses are given credit by many US and UK universities, though in India such credits are not given.

In 2021, even Machine Learning course of Coursera attracted heavy response.

Metaverse

Today we look at the internet as an outsider. Tomorrow, we will be in it. This is the simplest possible way to explain the complex concept of metaverse. Metaverse is going to be the successor to mobile internet. It is going to be a new way to experience internet.

People cannot be with each other physically all the time. You could be digitally present.

The immersive experiences could use VR headsets or AR glasses. Even otherwise people could access the immersive experience across devices such as phones and computers. The core ideas of content, continuity and co-presence will prevail irrespective of whether you use a plain device or a VR hardware.

Maybe, this metaverse journey will continue for a decade or more. It is taking baby steps now.

In future, people will hangout with family and friends more and more through co-presence. They can see sports together or enjoy a conversation together without being together physically.

The idea of continuity makes you move from space to space or take things with you. This requires building of interoperable standards.

Metaverse cannot be created by one company. It is going to be a colaborative effort. There are individual universes, and the idea is to connect them.

The early signs of a metaverse being made are the Horizon Workrooms or Horizon Worlds. Such VR-centric experiences could be built over the next couple of years.

Web-tracking Cookies

Cookies are small files that websites send to the user’s device, say a mobile or computer, to monitor the user and remember certain information about him/her, e.g. login information or shopping cart information.

These first party cookies are useful since these software snippets lets a website recognise individuals allowing them to do automatic login subsequently while they are on line. Otherwise, an individual would be treated as if he/she were visiting the website first time.

HTTP cookies or web-cookies are small block of data created by a webserver in the course of browsing by a user. These are placed on the user’s device by the user’s web browser. It is possible to place more than one cookie on a user’s device.

Originally, they were meant to shield people rather than do cyber snooping.

A California-based engineer-webbrowser programmer, working in Netscape coined the term cookies. For the first time the cookies were used in June, 1994 and a patent was applied for in 1995 which was granted in the US in 1998. Cookies were integrated with IE in 1995. They came by default. The public learnt about them in 1996. Privacy issues were then highlighted. Even FTC discussed them.

There were efforts to formulate specifications. Montoulli decided to use Netscape specification as the starting point. The efforts commenced in 1996, and the specifications were published in 1997. There is specification that no third party cookies will be used, and even when used, they will not be enabled by default.

Third party cookies, or tracking cookies compile long term records of individuals browsing history. They violate the privacy of individuals.

Advertising agencies were already using third party cookies. Netscape and IE did not comply with specifications. New specifications were laid down in 2000.

A third party cookie comes from a domain name different from the domain name used in the web browser’s address bar. Web browsers have privacy settings that can block third party cookies.

Session cookies or in-memory cookies exist only in temporary memory while web is being browsed. Persistent cookies continue for a specific length of time. Secure cookies are transmitted over encrypted connection. An Http-only cookie cannot be accessed by client-side APIs such as Java Script. Authentication cookies authenticate a logged-in user.

Google Chrome and later MS Edge introduced Same-site cookies (2016). Super cookies originate from top-level domain or public suffix. They are often blocked by browsers, as they are a security threat. A zombie cookie does not reside in dedicated cookie storage location. Its data and code are placed on a hidden location of a visitor’s device.

Google and Facebook have been fined by the French authorities over the use of cookies. The cookies could be stopped if targeted ads are stopped and online services are funded through subscriptions. But all this could drive advertisers to use stealthy tactics. They will find away. Even small websites will be starved of funds, and Big Tech will flourish. The middle way is to make it possible for the users to opt in or out of sharing data. Though web without cookies is not possible, we can learn to use them in a nuanced manner.