Facebook faces lawsuits that could force sale of Instagram, WhatsApp

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Updated 11 December 2020
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Facebook faces lawsuits that could force sale of Instagram, WhatsApp

  • Social media giant accused of using ‘buy or bury’ strategy to snap up rivals and keep smaller competitors at bay

WASHINGTON: Facebook Inc. could be forced to sell its prized assets WhatsApp and Instagram after the US Federal Trade Commission and nearly every US state filed lawsuits against the social media company, saying it used a “buy or bury” strategy to snap up rivals and keep smaller competitors at bay.

With the filing of the twin lawsuits on Wednesday, Facebook becomes the second big tech company to face a major legal challenge this year after the US Justice Department sued Alphabet Inc’s Google in October, accusing the $1 trillion company of using its market power to fend off rivals.

The lawsuits highlight the growing bipartisan consensus to hold Big Tech accountable for its business practices and mark a rare moment of agreement between the Trump administration and Democrats, some of whom have advocated breaking up both Google and Facebook.

The complaints on Wednesday accuse Facebook of buying up rivals, focusing specifically on its previous acquisitions of photo-sharing app Instagram for $1 billion in 2012 and messaging app WhatsApp for $19 billion in 2014.

Federal and state regulators said the acquisitions should be unwound — a move that is likely to set off a long legal challenge as the deals were cleared years earlier by the FTC.

“For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller rivals, snuff out competition, all at the expense of everyday users,” said New York Attorney General Letitia James on behalf of the coalition of 46 states, Washington, DC and Guam. Alabama, Georgia, South Carolina and South Dakota did not participate in the lawsuit.

James said the company acquired rivals before they could threaten the company’s dominance.

Facebook’s general counsel Jennifer Newstead called the lawsuits “revisionist history” and said antitrust laws do not exist to punish “successful companies.” She said WhatsApp and Instagram have succeeded after Facebook invested billions of dollars in growing the apps.

“The government now wants a do-over, sending a chilling warning to American business that no sale is ever final,” Newstead said.

Newstead also raised doubts about alleged harms caused by Facebook, arguing that consumers benefited from its decision to make WhatsApp free, and rivals like YouTube, Twitter and WeChat did “just fine” without access to its developer platform.

In a post on Facebook’s internal discussion platform, Chief Executive Mark Zuckerberg told employees he did not anticipate “any impact on individual teams or roles” as a result of the lawsuits, which he said were “one step in a process which could take years to play out in its entirety.”

Comments were turned off for Zuckerberg’s post, as well as for other posts on the lawsuits shared by Newstead and Chief Privacy Officer for Product Michel Protti, according to copies viewed by Reuters. Newstead also warned employees not to post about the cases.

Facebook did not immediately respond to questions about the posts.

Zuckerberg told employees in July that Facebook would “go to the mat” to fight a legal challenge to break up the company, calling it an “existential” threat, according to audio of internal company meetings published by The Verge.

Although breakup remedies are rare, some antitrust experts said the case was unusually strong given damning statements by Zuckerberg plucked from Facebook’s own documents, like a 2008 email in which he said “it is better to buy than compete.”

Other experts such as Seth Bloom of Bloom Strategic Counsel said the FTC complaint was “significantly weaker” than the DOJ’s lawsuit against Google.

“We’re talking about acquisitions that are six or eight years old and it will be difficult for a court to order divestitures of many years ago,” Bloom said.

Investors echoed similar concerns.

“I do not know if the FTC or DOJ will be successful in breaking Facebook up. I’m assuming this will be dragged out in the courts as FB defends itself,” said Daniel Morgan, a portfolio manager at Synovus Trust in Atlanta, Georgia.

The lawsuits are the biggest antitrust cases in a generation, comparable to the lawsuit against Microsoft Corp. in 1998. The federal government eventually settled that case, but the yearslong court fight and extended scrutiny prevented the company from thwarting competitors and is credited with clearing the way for the explosive growth of the internet.

Last month, Facebook said it was buying customer service startup Kustomer, in an acquisition that the Wall Street Journal said valued Kustomer at $1 billion.

Facebook also bought Giphy, a popular website for making and sharing animated images, or GIFs, in May. That acquisition has already drawn scrutiny from the United Kingdom’s competition watchdog.


Saudi smart city project NEOM marks National Day with short film celebrating Saudi anthem

Updated 31 min 10 sec ago
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Saudi smart city project NEOM marks National Day with short film celebrating Saudi anthem

  • Director Mohammed AlMulla’s 90-second film is titled ‘A Home for Dreamers,’ in keeping with this year’s National Day theme of ‘We Dream and We Achieve’
  • ‘We consider the national anthem as a symbol of Saudi Arabia’s values and history, while also instilling a deep sense of pride within our people,’ the director told Arab News

RIYADH: To mark Saudi National Day, the Kingdom’s smart city project NEOM has released a short film celebrating the Kingdom’s national anthem.

Directed by Saudi filmmaker Mohammed AlMulla, the 90-second film is titled “A Home for Dreamers,” in keeping with this year’s National Day theme of “We Dream and We Achieve.” It pays homage to the Kingdom’s progress over the years by exploring the significance of its national anthem and the ways in which it continues to deeply resonate with the Saudi people.

“We consider the national anthem as a symbol of Saudi Arabia’s values and history, while also instilling a deep sense of pride within our people,” AlMulla told Arab News in an exclusive interview.

The aim of the film is to “showcase this national unity and the preservation of our historical and cultural roots,” he added, but doing so was no easy task.

“Introducing the personality of the nation’s poet, Ibrahim Khafaji, and focusing on showing his importance behind the construction of and writing of the Saudi national anthem was challenging,” he explained.

“Embodying his character on the ground and building a character like him was one of the most prominent challenges, so we opted to use a specially made mask for a close and accurate visual representation.”

Saudi National Day, which is celebrated each year on Sept. 23, commemorates the founding of the country on that day in 1932 when King Abdulaziz issued a decree that renamed the Kingdom of Najd and the Hejaz as the Kingdom of Saudi Arabia.

AlMulla said that not only does National Day offer an opportunity to celebrate the nation’s achievements, culture, history and values, it is also a time for its people to express “love, loyalty and devotion” to their country. The occasion “often evokes feelings of pride in one’s country and a sense of belonging to a larger community,” he added, and it was therefore important that the creative force behind the film was Saudi, he said.

Citing the country’s rich cultural heritage and distinctive traditions, AlMulla said: “By having a Saudi team lead the production, there was a higher likelihood of capturing the authentic spirit, values and nuances of the celebration.

“Saudi filmmakers have an inherent understanding of the local customs, traditions, and sensitivities, which can contribute to a more authentic representation of the National Day celebration.”

The entertainment sector in the Kingdom has changed and developed in many ways over the past few years, and asked about the biggest changes in the Saudi film industry in particular, AlMulla said: “We can see a significant increase in film production in Saudi Arabia. Local filmmakers have been able to produce and release their films in theaters, allowing for the growth of the Saudi film industry.

“This has also attracted international filmmakers and production companies to collaborate with Saudi talent and work on projects within the country.”

The Kingdom’s film industry has experienced remarkable growth since Saudi Vision 2030, the national development and diversification plan, was announced in 2016. Cinemas reopened in the country in 2018 after an absence of 35 years, and figures from the Ministry of Commerce show that the nation’s cinema industry grew by 30 percent in the second quarter of 2023 compared with the same period the previous year


Iranian filmmakers protest official Oscar entry, call for new submission

Updated 22 September 2023
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Iranian filmmakers protest official Oscar entry, call for new submission

  • IIFMA said shortlist was not representative of Iran’s creative body of work
  • Iran selected Reza Mirkarimi’s “The Night Guardian” as country submission to the 96th Academy Awards

LONDON: Dissident Iranian filmmakers have protested the country’s official Oscars entry for 2024 and called on the Academy of Motion Picture Arts and Sciences to consider an alternative film to represent Iran.

The Iranian government-controlled Farabi Cinema Foundation has selected Reza Mirkarimi’s “The Night Guardian” as Iran’s submission to the 96th Academy Awards.

However, the Iranian Independent Filmmaker Association has opposed the decision, arguing that Farabi maintains close ties with the Islamic Republic’s government and that “Iranian cinema’s representative at the Oscars” should not be announced by the state-controlled entity.

In a statement, the IIFMA accused the government of leveraging Farabi to put “terrifying pressure on Iranian artists” and that the Oscars entry shortlist is not reflective of the creative body of work this year by Iranian filmmakers.

It added that Farabi also excluded several Iranian films that were critically acclaimed internationally this year from consideration as Iran’s Oscars entry.

The IIFMA pointed out that Farabi admitted to working with Iranian intelligence agencies to choose the films for the shortlist, adding that the organization has been banned from several film festivals, such as Berlin and Cannes, because of its close ties to the regime.

The IIFMA was formed on the eve of the Berlin Film Festival last February, in the wake of the “Woman, Life, Freedom” protests, to represent filmmakers who are not affiliated with the Iranian government.

AMPAS has not yet commented on the IIFMA’s protest or on the calls for an alternative Oscars entry for Iran.

However, the academy has a history of supporting filmmakers working in repressive environments.

In 2021, exiled Iranian filmmaker Bahman Ghobadi wrote to it suggesting the creation of a special entry in the category representing exiled artists.


Tunisia frees cartoonist after his arrest over drawings mocking PM

Updated 22 September 2023
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Tunisia frees cartoonist after his arrest over drawings mocking PM

  • Tawfiq Omrane could face one year in prison if convicted

TUNIS: Tunisia’s public prosecutor on Friday released the cartoonist Tawfiq Omrane, after he was detained for hours over drawings mocking the prime minister, fueling concern among free speech advocates.
Omrane is well known for publishing satirical cartoons featuring President Kais Saied, who seized almost all powers two years ago after he shut down Tunisia’s elected parliament in a move that the opposition described as a coup.
“They interrogated me on suspicion of insulting the prime minister. They showed a drawing that they considered offensive,” Omrane told Diwan FM Tunisian radio.
Omrane pledged that he would continue his satirical drawings.
“The police interrogated him (Omrane) for hours without the presence of lawyers on suspicion of insulting through social networks ... over cartoons mocking the prime minister,” his lawyer, Anas Kadoussi, told Reuters. Kadoussi said the cartoonist could face one year in prison if convicted.
Interior Ministry officials declined to comment immediately.
Ahmed Hachani is the prime minister, appointed last month to replace Najla Bouden.
Many Tunisians see free speech as a principal reform won after the 2011 revolution that toppled dictatorial President Zine El Abidine Ben Ali. Activists, journalists and politicians have warned this freedom is under threat.
“Omrane’s arrest reinforces authorities’ efforts to suppress critical voices of the president,” said Amira Mohamed, a senior official at the country’s Journalists’ Syndicate.
Kais Saied strongly criticized state TV in a speech this week, including the arrangement of headlines in a bulletin, in a move that the Journalists Syndicate said was “blatant interference.”
Saied rejects accusations of targeting freedoms and has said he will never be a dictator.
Police have detained more than 20 political figures this year, including opposition leader Rached Ghannouchi, head of the Ennahda party, accusing some of plotting against state security.


YouTube announces AI-powered tools to enhance content

Updated 22 September 2023
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YouTube announces AI-powered tools to enhance content

  • Dream Screen enables users to generate backgrounds and videos
  • YouTube Studio to use generative AI to help users produce ideas based on audience viewing habits

DUBAI: YouTube has unveiled several AI-powered tools, to be rolled out over the next year, to help creators enhance their content with videos or images.

The tools were showcased at the platform’s annual event “Made on YouTube” on Thursday.

“The creativity of content creators on YouTube across the Middle East and North Africa is truly inspiring and we’re excited to see how they will leverage YouTube’s new AI-powered features to continue pushing the boundaries of creative expression,” Tarek Amin, director of YouTube in MENA, told Arab News.

Since the launch of Shorts in 2020, the short-form content format has been capturing audiences’ attention, garnering over 70 billion daily views globally.

To make Shorts even more appealing for creators, YouTube announced the launch of Dream Screen, an experimental feature that allows creators to add AI-generated video or image backgrounds to their Shorts simply by typing an idea into a prompt.

“Given the mobile-first creator and audience for Shorts, it made sense for Dream Screen to start there,” a YouTube spokesperson told Arab News, adding that the feature would be developed further based on community feedback.

YouTube Studio will use generative AI to help creators brainstorm and come up with ideas based on audiences’ viewing habits and content interests. The insights will be personalized for each channel or creator, YouTube said.

The company has been testing early versions of AI-powered tools in YouTube Studio with creators, and more than 70 percent of those surveyed said it has helped them develop and test ideas for videos.

For now, the feature will be deployed experimentally in the US later this year, and will be expanded to other creators next year, the spokesperson said.

YouTube also launched YouTube Create, a production and editing mobile app for creators. Early tests were conducted in India and Singapore, and the app is currently in beta for creators in the US, UK, France, Germany, South Korea and Indonesia.

It is currently available only on Android devices but is expected to launch on iOS next year.

The company also announced other products and features including an AI-powered music recommendation system that will take a written description of a creator’s video and suggest which soundtrack matches best, as well as an AI dubbing feature that will allow creators to dub their videos into other languages.

The latter is powered by Aloud, which is part of Area 120, Google’s in-house incubator for experimental projects.

It currently supports dubbing from English to Portuguese and Spanish.

The YouTube spokesperson told Arab News: “Translation and transcription quality is different across languages; we will increase language coverage — including starting from a non-English source — as we gain higher confidence over the translation and transcription accuracy of the dubs.”

 


StarzPlay reveals most-watched content in Saudi Arabia

Updated 22 September 2023
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StarzPlay reveals most-watched content in Saudi Arabia

  • Viewers in the Kingdom account for 30% of the service’s sports audience, 45% of its entertainment audience, and 50% of those who watch StarzPlay Originals
  • Number of people in the country watching Arabic content has doubled since February, after addition of Arabic Originals and content from Egyptian streaming service Watch It

DUBAI: Football, StarzPlay Originals and Turkish programs are among the most-watched content on StarzPlay in Saudi Arabia, according to newly released statistics from the streaming service.

Audiences in the Kingdom are clearly big sports fans, with Saudi viewers accounting for 30 percent of the StarzPlay Sports audience. In addition to football, Ultimate Fighting Championship and rugby are among the most popular sports, the viewing figures reveal.

“The appeal of sports in Saudi (Arabia) has been truly remarkable for us and it’s fantastic that we can appeal to such a diverse range of sports enthusiasts with our wide array of sports programming, spanning football, rugby, cricket and more,” said Tony Saab, senior vice president of content and programming.

The figures also reveal that viewers in Saudi Arabia make up 45 percent of StarzPlay’s audience for entertainment programming, with the streaming service’s Originals, Turkish and Arabic titles, and comedy boxsets racking up the most views.

Arabic Originals such as the films “Harley,” “Big Lie” and “Wala Ghalta,” and TV series “Kaboos” and “The Chamber” are particularly popular among Saudis, who represent about half of the total audience for Originals content.

The number of users in the Kingdom that watch Arabic content has doubled since February, following the launch of Arabic Original titles and the addition of content from Egyptian video-on-demand service Watch It, StarzPlay said.

The popularity of Originals “underlines the importance of our commitment to consistently delivering high-quality content for our audiences and we remain dedicated to bringing the finest entertainment to our Saudi viewers,” said Saab.

“Saudi Arabia is one of our key markets and we are delighted to witness the ongoing expansion in viewership.”

The statistics also reveal that the majority of Saudi StarzPlay viewers use their TVs or mobile phones to stream content, and three times as many people use iOS devices compared with those powered by Android.