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    TikTok, Facing a U.S. Ban, Tells Advertisers: We’re Here and Confident

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    The company’s executives tried to reassure potential advertisers about the app’s future in the United States without directly addressing a looming ban under a federal law.“TikTok is here — we are here,” Khartoon Weiss, the company’s vice president of global business solutions, told a packed warehouse of advertisers on Tuesday in Manhattan.“We are absolutely confident in our platform and confident in the future of this platform,” she declared.That statement was the closest TikTok advertising executives got to addressing the app’s uncertain fate in the United States in the company’s annual spring pitch to marketers. Under a federal law and executive order, the app is set to be banned in the country next month if the Chinese owner of the company, ByteDance, does not sell it.Hundreds of representatives from companies like L’Oreal and Unilever and various ad agencies scrambled to find seats for an event hosted by the comedian Hasan Minhaj that heavily emphasized TikTok’s role as a cultural juggernaut.TikTok was more than a video platform, Mr. Minhaj told the crowd. TikTok was “the cultural moments you talk about at work, the jokes you talk about in your group chat, the language you use in your everyday life,” he said.The tone of the event marked a departure from TikTok’s presentation a year ago, when the company was smarting from the federal law that promised to ban the app in the United States because of national security concerns related to the company’s Chinese ownership. Last year’s pitch started with one of TikTok’s top executives telling roughly 300 attendees that the company would fight the law in court and prevail and was “not backing down.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Google Makes History With Rapid-Fire Antitrust Losses

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      Within a year, two federal judges declared the tech giant a monopoly in search and ad technology. The tide may be turning for antitrust.Silicon Valley’s tech giants have long regarded antitrust scrutiny as an irritating cost of doing business. There will be investigations, filings, depositions and even lawsuits.Yet courts move slowly, while technology rushes ahead. Time works to the companies’ advantage, as the political winds shift and presidential administrations change. That dynamic often opens the door to light-touch settlements.But the stakes rose sharply for Google on Thursday, when a federal judge ruled that the company had acted to illegally to build a monopoly in some of its online advertising technology. In August, another federal judge found that Google had engaged in anticompetitive behavior to protect its monopoly in online search.Antitrust experts said two big antitrust wins for the government against a single company in such a short time appeared to have no precedent.“Two courts have reached similar conclusions in product markets that go to the heart of Google’s business,” said William Kovacic, a law professor at George Washington University and former chairman of the Federal Trade Commission. “That has to be seen as a real threat.”The Google decisions are part of a wave of current antitrust cases challenging the power of the biggest tech companies. This week, the trial began in a suit by the F.T.C. claiming that Meta, formerly Facebook, cemented an illegal monopoly in social media through its acquisitions of Instagram and WhatsApp.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Google Is a Monopolist in Online Advertising Tech, Judge Says

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      The ruling was the second time in a year that a federal court had found that Google had acted illegally to maintain its dominance.Google acted illegally to maintain a monopoly in some online advertising technology, a federal judge ruled on Thursday, adding to legal troubles that could reshape the $1.88 trillion company and alter its power over the internet.Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia said in a ruling that Google had broken the law to build its dominance over the largely invisible system of technology that places advertisements on pages across the web. The Justice Department and a group of states had sued Google, arguing that its monopoly in ad technology allowed the company to charge higher prices and take a bigger portion of each sale.“In addition to depriving rivals of the ability to compete, this exclusionary conduct substantially harmed Google’s publisher customers, the competitive process, and, ultimately, consumers of information on the open web,” said Judge Brinkema, who also dismissed one portion of the government’s case.Google has increasingly faced a reckoning over the dominant role its products play in how people get information and conduct business online. Another federal judge ruled in August that the company had a monopoly in online search. He is now considering a request by the Justice Department to break the company up.Judge Brinkema, too, will have an opportunity to force changes to Google’s business. In its lawsuit, the Justice Department pre-emptively asked the court to force Google to sell some pieces of its ad technology business acquired over the years.Together, the two rulings and their remedies could check Google’s influence and result in a sweeping overhaul of the company, which faces a potential major restructuring.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Canada Accuses Google of Creating Advertising Tech Monopoly

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      The case largely echoes an antitrust action in the United States and seeks to force Google to sell off sections of its online ad business.Canada’s competition authority on Thursday accused Google of abusing its tools for buying and selling online advertising to create a monopoly, and filed a complaint seeking to force the company to sell two of its main advertising technology services.The case strikes at the heart of Google’s business and echoes an ongoing U.S. antitrust lawsuit against the Silicon Valley giant.Both cases come amid four other lawsuits filed in the United States against Google since 2020 and other efforts by officials around the world to reign in the power that large technological companies like Google, Amazon and Apple hold over information and commerce online.Canada is also attempting to use new laws to limit harms caused by social media and to require tech companies to compensate traditional news organizations.In a statement, Canada’s Bureau of Competition Policy, a law enforcement agency, charged that Google has used its position as the largest provider of software for buying and selling ads, its marketplace for ad auctions and its services for showcasing the ads to illegally dominate the sector.The company’s conduct, it said, ensured that the Alphabet-owned Google “would maintain and entrench its market power,” adding that it “locks market participants into using its own ad tech tools, prevents rivals from being able to compete on the merits of their offering.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      TikTok Faces Lawsuits From 13 States Around Teens and Mental Health

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      More than a dozen states sued TikTok on Tuesday for creating an app designed to be addictive to children and teens.Thirteen states and the District of Columbia sued TikTok on Tuesday for creating an intentionally addictive app that harmed children and teens while making false claims to the public about its commitment to safety.In separate lawsuits, a bipartisan group of attorneys general cited internal company documents to paint a picture of a multibillion dollar company that knowingly contributed to a mental health crisis among American teenagers to maximize its advertising revenue. They said that TikTok, which is owned by the Chinese company ByteDance, has relentlessly designed features to prompt heavy, compulsive use of TikTok and that many children were using the app late at night when they would otherwise have been asleep.TikTok “knew the harms to children,” Rob Bonta, the Democratic attorney general of California, said in an interview. “They chose addiction and more use and more eyeballs and more mental and physical harm for our young people in order to get profits — it’s really that simple.”The lawsuits add to a rapidly expanding list of challenges for TikTok in the United States, which now counts 170 million monthly U.S. users. A federal law passed in April calls for the app to be banned in the United States as of January unless it is sold. A federal lawsuit against the company in August also claimed that TikTok allowed children to open accounts, gathered information about them and made it difficult for their parents to delete the accounts.TikTok did not immediately respond to a request for comment.The states, many of which started investigating the company’s harms to minors in early 2022, are generally claiming that TikTok’s conduct violates their consumer protection laws. The states say that TikTok plays videos in a manner that aims to make young users lose track of time and sends them round-the-clock notifications and ephemeral content like livestreams to compel them to keep checking in. The longer users stay on the app, the more targeted ads TikTok is able to show them.The attorneys general say that TikTok has misled users about its so-called 60-minute screen time limits for young people and other features that promise to curate the videos that they see.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      How Google Defended Itself in the Ad Tech Antitrust Trial

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      The tech giant, which wrapped up its arguments in the federal monopoly trial, simply says it has the best product.Over the past week, Google has called more than a dozen witnesses to defend itself against claims by the Justice Department and a group of state attorneys general that it has a monopoly in advertising software that places ads on web pages, part of a second major federal antitrust trial against the tech giant.Google’s lawyers wrapped up their arguments in the case on Friday, and the government will now offer a rebuttal. Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia, who is presiding over the nonjury trial, is expected to deliver a ruling by the end of the year, after both sides summarize their cases in writing and deliver closing arguments.The government last week concluded its main arguments in the case, U.S. et al. v. Google, which was filed last year and accuses Google of building a monopoly over the technology that places ads on websites around the internet.The company’s defense has centered on how its actions were justified and how it helped publishers, advertisers and competition. Here are Google’s main arguments.How Google claims its actions were justifiedThe Justice Department and a group of states have accused the tech company of abusing control of its ad technology and violating antitrust law, in part through its 2008 acquisition of the advertising software company DoubleClick. Google has pushed up ad prices and harmed publishers by taking a big cut of each sale, the government argued.But Google’s lawyers countered that the ad tech industry was intensely competitive. They also accused the Justice Department of ignoring rivals like Facebook, Microsoft and Amazon to make its case sound more compelling.Visa, Google, JetBlue: A Guide to a New Era of Antitrust ActionBelow are 15 major cases brought by the Justice Department and Federal Trade Commission since late 2020, as President Biden’s top antitrust enforcers have promised to sue monopolies and block big mergers.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Backpage Founder Gets Five Years in Case That Shut Down Website

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      Michael Lacey, 76, co-founded the website that became known for its ads for prostitution. He was convicted on a money laundering charge in a case that included accusations of sex trafficking.A founder of the shuttered classified advertising website Backpage was sentenced on Wednesday to five years in federal prison in connection with a sweeping case that led to the closing of the website and accusations against its executives that they promoted sex trafficking, prosecutors said.Michael Lacey, 76, of Arizona, was convicted on a single count of international concealment money laundering in November after being charged in a 100-count indictment in 2018 with several other defendants who, prosecutors said, conspired to promote prostitution ads and launder earnings of more than $500 million made from the scheme between 2010 and 2018. The case was tried in the U.S. District Court for the District of Arizona.In addition to the five-year prison sentence, Mr. Lacey was ordered Wednesday to pay a $3 million fine, prosecutors said.The jury that convicted Mr. Lacey last year was deadlocked on 84 other charges against him, including several charges that he helped advertise prostitution on Backpage. The deadlock led U.S. District Judge Diane Humetewa to declare a mistrial on those counts. It was the second mistrial in the case. Mr. Lacey would later be acquitted of several of the counts, but could still face 30 of them, according to The Associated Press.Two other executives, Scott Spear and John “Jed” Brunst, were convicted alongside Mr. Lacey on both money laundering and prostitution facilitation counts.They were acquitted on some of those charges in April, but each received 10-year sentences Wednesday, according to a spokesman for the Justice Department, Joshua Stueve.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 100 Shares139 Views

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      Meta’s Ad-Free Subscription Violates Competition Law, E.U. Says

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      Regulators said the subscription service introduced last year is a “pay or consent” method to collect personal data and bolster advertising.When Meta introduced a subscription option last year that would allow users in the European Union to pay for an advertising-free experience of Instagram and Facebook, it was meant to fix regulatory problems the company faced in the region.The plan created new legal headaches instead.On Monday, European Union regulators said Meta’s subscription, which costs up to 12.99 euros a month, amounted to a “pay or consent” scheme that required users to choose between paying a fee or handing over more personal data to Meta to use for targeted advertising.Meta introduced the subscription last year as a way to address regulatory and legal scrutiny of its advertising-based business model. Of most concern was the company’s combination of data collected about users across its different platforms — including Facebook, Instagram and WhatsApp — along with information pulled from other websites and apps.Meta argued that by offering a subscription, users had a fair alternative.But regulators on Monday said the system was no choice at all, forcing users to pay for privacy. The authorities said Meta’s policy violated the Digital Markets Act, a new law aimed at reining in the power of the biggest tech companies.The law, known as the D.M.A., is intended to prevent large tech companies from using their size to coerce users into accepting terms of service they would otherwise reject, including the collection of personal data. The concern was platforms like Instagram and Facebook are so widely used that people have to choose to either hand over their data or not join at all.Regulators said the law required companies to allow users to opt out of having their personal data collected while still getting a “less personalized but equivalent alternative” of the service.“Meta’s ‘pay or consent’ business model is in breach of the D.M.A.,” said Thierry Breton, the European commissioner who helped draft the law. “The D.M.A. is there to give back to the users the power to decide how their data is used and ensure innovative companies can compete on equal footing with tech giants on data access.”In a statement, Meta said that the subscription service complied with the Digital Markets Act and that it would work with European regulators to resolve the investigation.Last week, Nick Clegg, Meta’s president, said that Europe was falling behind economically because of overregulation. “Europe’s regulatory complexity and the patchwork of laws across different member states often makes companies hesitant to roll out new products here,” he said.The announcement on Monday is one step in a longer process. The European Commission, the executive branch of the 27-nation bloc, has until March to complete its investigation. If found guilty, Meta could face fines of up to 10 percent of its global revenue and up to 20 percent for repeat offenses.Meta is the second company to face charges under the Digital Markets Act. Last week, the commission brought charges against Apple for unfair business practices related to the App Store. More

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      Liberal Super PAC Is Turning Its Focus Entirely Digital

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      No more television ads from Priorities USA: The group is planning a $75 million online effort to help President Biden and Democrats up and down the ballot.Priorities USA, one of the biggest liberal super PACs, will not run a single television advertisement in the 2024 election cycle.Instead, the group announced Tuesday, Priorities USA is reshaping itself as a digital political strategy operation, the culmination of a yearslong transition from its supporting role in presidential campaigns to a full-service communications, research and training behemoth for Democrats up and down the ballot.The move reflects a broad shift in media consumption over the past decade, away from traditional broadcast outlets and toward a fragmented online world. It also shows the growing role played by big-money groups in shaping campaigns and American political life: Priorities USA says it will spend $75 million on digital “communications, research and infrastructure” in the next year.“We have learned that the internet is evolving too quickly for the traditional campaign apparatus to keep up in two-year cycles,” Danielle Butterfield, the group’s executive director, said in an interview. “We have committed to not just closing the gaps, but building infrastructure. We are not just focused on single-candidate investments.”She added, “We are, I think, teaching folks how to fish.”Ms. Butterfield said that more than half of that $75 million would be direct investments supporting President Biden’s re-election efforts and the campaigns of other Democrats on the ballot. Those plans, she said, will also have “embedded experiments” that will provide feedback on how people are responding to their efforts.The organization said it was developing relationships with influencers and other “content creators” to spread campaign messages on platforms like TikTok. The group has also been working on “contextual targeting,” which it defined as presenting ads to voters based on what they were watching on their devices at any given moment.Priorities USA also has a nonprofit arm that focuses on litigation and voter protection work.Because of its size, the organization is essentially without peer or competitor in its new role, but Ms. Butterfield likened its new focus to that of the Center for Campaign Innovation, a conservative nonprofit group — not a super PAC — that is focused on digital politics.Eric Wilson, the founder of the Center for Campaign Innovation, said Priorities USA’s change of focus “clearly shows that the way campaigns are going is around content creation and digital platforms.” While television advertising remains the best way to get a message in front of the most people, he said, “we are seeing diminishing returns on TV advertising — it’s becoming more expensive and less effective.”“Media fragmentation is a big challenge for campaigns,” Mr. Wilson said, noting that the Center for Campaign Innovation does not work with campaigns. “You’ve got platforms that are banning political advertising. How do we teach campaigns to create their own content? What are the ways you can get political ads distributed, in a world that’s set up to block political messages?”He added, “We spend a lot of time and investment figuring out how voters get information and why they make decisions.” (The Center for Campaign Innovation does not work with any campaigns.)Priorities USA was formed in 2011 and supported Barack Obama’s 2012 re-election campaign, Hillary Clinton’s 2016 campaign and Mr. Biden’s 2020 campaign. It has relied on support from major Democratic donors; in 2020, former Mayor Michael R. Bloomberg of New York gave more than $19.2 million, campaign finance records show.The group has expanded in recent years and has run digital training programs and an ad tracking service for strategists. It has also reached beyond presidential campaigns to work on Senate campaigns and state elections, including the recent Pennsylvania Supreme Court race. More