Microsoft’s LinkedIn loses appeal over access to user profiles

LinkedIn’s effort to stop a San Francisco company has been rejected by an appeals court. (AFP)
Updated 09 September 2019
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Microsoft’s LinkedIn loses appeal over access to user profiles

  • The 3-0 decision by the San Francisco appeals court sets back Silicon Valley’s battle against “data scraping,”
  • LinkedIn said it was disappointed with the decision and evaluating its options

A federal appeals court on Monday rejected LinkedIn’s effort to stop a San Francisco company from using information that users of the professional networking website have deemed public.
The 9th US Circuit Court of Appeals let stand an August 2017 preliminary injunction that required LinkedIn, a Microsoft Corp. unit with more than 645 million members, to give hiQ Labs Inc. access to publicly available member profiles.
The 3-0 decision by the San Francisco appeals court sets back Silicon Valley’s battle against “data scraping,” or extracting information from social media accounts or websites, which critics say can equate to theft or violate users’ privacy.
Circuit Judge Marsha Berzon said hiQ, which makes software to help employers determine whether employees will stay or quit, showed it faced irreparable harm absent an injunction because it might go out of business without access.
She also said giving companies such as LinkedIn “free rein” over who can use public user data risked creating “information monopolies” that harm the public interest.
“LinkedIn has no protected property interest in the data contributed by its users, as the users retain ownership over their profiles,” Berzon wrote. “And as to the publicly available profiles, the users quite evidently intend them to be accessed by others,” including prospective employers.
In a statement, LinkedIn said it was disappointed with the decision and evaluating its options, and will “fight to protect our members and the information they entrust” to it.
Lawyers for hiQ did not immediately respond to requests for comment. The case was returned to US District Judge Edward Chen in San Francisco, who issued the injunction.
Craigslist, the classified ad website, had supported LinkedIn’s appeal, warning that the injunction could have a “dangerous impact” by making it easier for “bad actors” to find targets for unwanted email, text or phone-based marketing.
Berzon said, however, hiQ had raised serious questions about LinkedIn’s conduct, including whether it could invoke a federal law targeting computer fraud and abuse to block “free riders” from accessing user data.
“Of course, LinkedIn could satisfy its ‘free rider’ concern by eliminating the public access option, albeit at a cost to the preferences of many users and, possibly, to its own bottom line,” she wrote.
Gregory Garre, a former US solicitor general under President George W. Bush representing craigslist, did not immediately respond to requests for comment.
Donald Verrilli, a solicitor general under President Barack Obama, represented LinkedIn. Harvard Law School professor Laurence Tribe was one of hiQ’s lawyers.
 


New Saudi draft project to regulate direct market entry of listed companies’ subsidiaries

Updated 59 min 40 sec ago
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New Saudi draft project to regulate direct market entry of listed companies’ subsidiaries

RIYADH: The Saudi Capital Market Authority has launched a draft regulation for the direct listing of subsidiaries of companies already listed on the main market, inviting stakeholders to provide feedback over a 30-day period, according to a statement issued Feb. 26.

The proposed framework aims to allow subsidiaries of main-market companies to list their shares directly on the main market without undergoing an initial public offering, thereby shortening timelines, streamlining procedures, and reducing the costs associated with listing on the Saudi stock market.

It also seeks to create more investment opportunities in the Saudi financial market, contributing to market depth and product diversification, while maintaining high levels of transparency and protecting investors’ rights.

The proposals enable the issuer and its financial advisor to share information about the company and its financial statements with a select group of potential investors before obtaining CMA approval for the share registration request, allowing them to assess their interest in a direct listing on the main market.

They also allow a specific group of licensed financial advisory firms to prepare research and financial reports, provided these are not published before CMA approval.

The proposed framework emphasizes the importance of proper disclosure by setting out requirements for registering shares on the main market, including submitting a registration document to the CMA.

It also specifies the information that must be included in the registration document, such as the method for determining the reference share price and the risks associated with this method.

Under the draft regulation, securities offering rules, ongoing obligations, and the CMA’s glossary of terms and regulations will be updated to allow this type of listing.

This approach is expected to bring multiple benefits, including maximizing the overall value of the main market with lower risk by listing companies that have greater knowledge and experience of market regulations, as well as deepening the market by increasing the number of listed companies across multiple sectors.