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Economy

How Elite Users Getting First Access To Tech Reinforces Inequality

Former Secretary of State Madeleine Albright Wearing Google Glass (Credit: NDI Twitter)

Close your eyes and think of the last person you saw wearing Google Glass. While it may have been Madeleine Albright, it’s more likely the wearer looked something like the stream of dudes pictured on the White Men Wearing Google Glass Tumblr. While the Tumblr is obviously a self-selecting sample, it reflects all too well most depictions that accompanied media coverage of the device so far. But the real issue is less media coverage and more an inherent level of early adopter privilege that allow some more access to and influence over emerging technology.

And being part of that early adopter class isn’t just about who gets to play with the fun new toys first, it’s about who has the ability to influence the development of uses for technology that will guide future products and how the device is rolled out to a larger audience. While the technology itself is neutral, the ways society decides to use it are not — and due to a variety of social and economic factors, an elite class often gets to make the first decisions about how technology is used before it trickles down to other classes who might have different, perhaps even more immediate, needs for it.

As Jamelle Boiue pointed out earlier this year, implicit networking connections and economic opportunities have made influencers in the tech sphere a fairly homogenized group that includes a lot of white males. While communities of color are huge users of technology, they are often underrepresented among those providing commentary that helps craft the future of the space or designing the actual technology — as are women.

When Google’s own Sergey Brin inadvertently confirmed assumptions of who the initial audience for Google Glass would be when it comes to gender by contrasting using Google Glass with the “emasculating” experience of a smartphone at a TED talk, it was likely just poor word choice. But it also hit a little close to how women using technology are stereotyped and reinforced the logic behind the findings of some research suggesting cultural stereotypes drive women down other career paths despite aptitudes for math and science.

But the lack of that female input in the early stages of development and user testing can result in tech overlooking resources or services more geared towards their needs. Remember how Apple’s Siri couldn’t find abortion providers, but could find strip clubs and escort services?

The systematic exclusion of minority and female voices from the development and early use of tech products is an unintentional byproduct of a larger system of social and economic inequality that is by no means exclusive to this particular device. But the White Men Wearing Google Glass Tumblr can be a vehicle to discuss how the structures controlling who has access to technological developments first influence its deployment, and if incorporating diversity into that system can maximize the benefits of technological innovations for all potential users.

Economy

Google To Face EU Action For Failing To Resolve Privacy Concerns

The Washington Post reports search giant Google will face coordinated action by European Union (EU) data protection regulators after attempts to make Google’s new integrated privacy policy comply with privacy laws fell apart:

A taskforce of agencies led by France’s National Commission for Computing and Civil Liberties today began follow-up measures in line with their national laws after a meeting with Google yielded “no changes,” the regulator known as CNIL said in an e-mailed statement today. U.K., German, Italian, Spanish and Dutch watchdogs are also part of the taskforce.

Google announced the new privacy policy objected to by the EU states over a year ago. Under the policy, the search giant can combine information provided from one service with information from other services to create a comprehensive profile of an individual’s online behavior across Google products. Privacy protections in the EU, where an umbrella Data Protection Directive leads much of the privacy policy, are generally more stringent than in the U.S., where a “patchwork” of legislation defines online privacy rights.

While Google has been somewhat ahead of the game on protecting consumer data from government snooping, such as requiring warrants for email content data, they have faced a number of sanctions for questionable data collection practices including in the U.S. They agreed to a $22.5 million Federal Trade Commission (FTC) settlement for bypassing Safari privacy settings in 2012 and a $7 million fine in March of this year for the “Wi-Spy” incident in which Google Streetview Cars collected information from unencrypted Wi-Fi networks without consent — both of which amounted to mere hours of 2012 revenues.

Yesterday it was revealed that Google’s first Privacy Director, the London-based Alma Whitten, is stepping down and will be replaced by a California-based long-time Google engineer Lawrence You.

LGBT

Nearly 300 Companies And Municipalities File Brief Against DOMA

Nearly 300 companies, along with several law firms and municipalities, have submitted an amicus brief to the Supreme Court challenging the constitutionality of the Defense of Marriage Act. Many recognizable companies signed on, including Adobe, Amazon, Apple, CBS, Cisco Systems, Citigroup, eBay, Electronic Arts, Facebook, Goldman Sachs, Google, Intel, JetBlue Airways, The Jim Henson Company, Johnson & Johnson, Levi Strauss, Mars, Microsoft, Morgan Stanley, Nike, Pfizer, Planet Fitness, Starbucks, Sun Life Financial, Twitter, Viacom, the Walt Disney Company, and Xerox. They are joined by the cities of Baltimore, Boston, Los Angeles, New York City, Providence, San Francisco, and Seattle, among others. One interesting signatory of note is Bain & Company, the management consultant firm that Mitt Romney once worked for — not to be confused with Romney’s private equity firm, Bain Capital.

The brief argues that DOMA places burdens on companies that impede their ability to recruit and retain productive employees because of the strains on benefits. In many ways, these companies are bound by the law to discriminate against their employees against their wishes, and they often incur financial burdens to simply find ways to navigate around DOMA. These companies make it clear that it violates their business models to comply with DOMA:

DOMA imposes on amici not simply considerable burden of compliance and cost. DOMA conscripts amici to become the face of its mandate that two separate castes of married persons be identified and separately treated. As employers, we must administer employment-related health-care plans, retirement plans, family leave, and COBRA. We must impute the value of spousal health-care benefits to our employees’ detriment. We must treat one employee less favorably, or at minimum differently, when each is as lawfully married as the other. We must do all of this in states, counties, and cities that prohibit workplace discrimination on the basis of sexual orientation and demand equal treatment of all married individuals. This conscription has harmful consequences. [...]

Our principles are not platitudes. Our mission statements are not simply plaques in the lobby. Statements of principle are our agenda for success: born of experience, tested in laboratory, factory, and office, attuned to competition. Our principles reflect, in the truest sense, our business judgment. By force of law, DOMA rescinds that judgment and directs that we renounce these principles or, worse yet, betray them.

These companies have made it clear that inequality harms not just the families of LGBT people, but American businesses as well. As Joe Jervis suggests, conservatives would have a difficult time boycotting so many ubiquitous companies.

Alyssa

‘The Internship’ And The Problems Of Product Integration

Last week, prompted by what appeared to be a product integration plot on The Middle that was aimed at boosting the desirability of the iPad, the New Yorker’s television critic Emily Nussbaum laid out a useful distinction between “props (placement) and integration (paid scripted plots.)” I’ve always said that I’m relatively comfortable with television shows, particularly low-rated but beloved ones that are looking to stay alive by tightening their budgets, by striking some deals with corporate sponsors, either for casual product placement, or for the kind of very transparent, self-aware product integration deals that Subway struck with both Chuck and Community. I think I’m somewhat more tolerant than Emily of the idea that my television programs will try to sell me things, if only because I think it’s a self-limiting form of minor evil. There are only so many times per season you can get away with a plot that involves trying to sell me a product, but an infinite number of times you can try to sell me on many other rotten ideas that have a much greater impact than the purchase of computer electronics.

That said, we’re seeing the rise of a very different kind of product integration in popular culture that’s bumping up against my sense of comfort. Increasingly, we’re starting to see shows and movies where product integration isn’t incidental—it’s the frame for the entire product. And it’s selling companies, rather than discrete products.

First, there was CBS’s attempt to put together a show based at Groupon, the online coupon dealer. Now, Vince Vaughn and Owen Wilson are starring in a movie, The Internship in which they’re interns at Google:

The CBS show didn’t come through, but both it and The Internship have as their premise the idea that the companies where they’re set are innovative, dynamic places full of interesting, admirable people (30 Rock at least sold NBC and GE as not-even-hot messes). Groupon would have been the star of a television show precisely at the point when its daily deal business model was coming under question, as it and competitors like Living Social ran out of companies willing to participate for the first time, and for companies willing to reup after their first experiences. It’s absolutely true that Google has incredible office space—I’ve visited the ones here in DC, which are deeply enviable—but there’s much more to the company than that. Loyalty to an entire company is much, much more valuable to an organization than loyalty to a single product: Apple, and increasingly Amazon are examples of how profitable it can be to lock in a customer for an entire range of their needs, rather than for one of them. And encouraging us to become attached to corporations (as if they were, say, people) may also be a way of encouraging us to look less closely that those companies have, whether it’s the environmental toll of Apple products or labor issues in Amazon’s fulfillment chain.

In other words, it’s a win-win for companies who can sell themselves as settings to Hollywood. It’s a good deal for movie or television productions that can get substantial subsidies by setting shows and movies in corporations. But for me, it’s a decided bridge too far.

Justice

Surpassing Outdated Law, Google Requires Warrants For Government Access To Email Content

In a major change to how America’s largest tech companies handle online privacy, Google revealed this week that it requires warrants for users’ email content and data stored in the cloud, imposing hurdles to government access to data beyond the scope of a 1986 electronic privacy law.

But even as Google’s policy is a big step forward for digital due process advocates, it doesn’t extend to a significant portion of the information Google releases to law enforcement agencies such as IP addresses used to access Google accounts, message time stamps, and to and from fields. And Google’s recently released transparency data shows that getting information on your online activities can still largely be done without a warrant.

The report shows less than a quarter of the 8,428 government requests for U.S. user data they received in July to December 2012 were search warrants, and 88 percent of requests were fully or partially complied with. The U.S. led country rankings in terms of total number of requests made and the percentage of requests complied with.

Wired quotes Google spokesman Chris Gaither on Google’s newly outlined warrant policy, which has been in effect for an unclear amount of time: “Google requires an ECPA search warrant for contents of Gmail and other services based on the Fourth Amendment to the Constitution, which prevents unreasonable search and seizure.” Google’s interpretation is novel because under the Electronic Communication Privacy Act of 1986 (ECPA), messages over 180 days old stored in the cloud only require an administrative subpoena — rather than a warrant approved by a judge — largely due to how email technology worked in 1986: It was very unusual for data to remain on external servers because of hosting costs, leading to a belief that any data left on an external server for that could be considered abandoned.

While our use of technology has changed dramatically since 1986, the law has not: An attempt to update the law last year stalled over the holidays. And while the law does not require a warrant to access some data, two federal appellate courts came to differing conclusions on the issue in 2010, one stating that obtaining the content of email messages stored on an email provider’s server requires a warrant, and another allowing magistrate judges discretion to require warrants from the government when requesting location information from cellphone providers — although both rulings only apply to their judicial district.

Google’s public stance on warrants may signal that tech companies are no longer willing to quietly accept the lack of progress on technology policy. In many sectors it has become clear our laws have not kept up with the pace of technological innovation, yet the biggest success of the tech sector last year focused on preventing bad legislation rather than updating woefully outdated regulation.

LGBT

Illinois Business Leaders Endorse Marriage Equality

A coalition of business leaders have endorsed marriage equality in Illinois, including Fred Eychaner (chairman of the Newsweb Corp.), Laura Ricketts (co-owner of the Chicago Cubs, and companies like Google, Orbitz Worldwide, and Groupon. In an open letter, these corporate leaders encourage lawmakers to support same-sex marriage for the benefit of company employees and the state’s economy:

Marriage equality would strengthen the workforces of Illinois employers, who know there is no substitute for employees with diverse backgrounds and experiences. Companies must understand a changing marketplace and be able to connect with their customers; having a diverse workforce is a part of that. That’s one reason many employers have adopted non-discrimination policies and offer domestic partner benefits.

Marriage equality promotes economic development, too. According to the UCLA School of Law’s Williams Institute, allowing same-sex couples to marry would generate between $39 million and $72 million in revenues for Illinois businesses, creating $4.5 million to $8 million in new sales and lodging tax revenues over three years.

Religious leaders in Illinois have spoken out on both sides of the issue, and the lawmakers introduced legislation upon the start of the new session.

Economy

More Companies Join Amazon In Using Tax Shelters To Hide Billions

Last week, Reuters noted that the online retail giant Amazon had avoided hundreds of millions of dollars in taxes by stashing cash in Luxembourg, a notorious tax haven. Today, Bloomberg News’ Jesse Drucker reported that Amazon is not the only tech company employing this strategy — Google last year avoided $2 billion in taxes worldwide thanks to shifting money to Bermuda:

Google Inc. (GOOG) avoided about $2 billion in worldwide income taxes in 2011 by shifting $9.8 billion in revenues into a Bermuda shell company, almost double the total from three years before, filings show.

By legally funneling profits from overseas subsidiaries into Bermuda, which doesn’t have a corporate income tax, Google cut its overall tax rate almost in half. The amount moved to Bermuda is equivalent to about 80 percent of Google’s total pretax profit in 2011.

The increase in Google’s revenues routed to Bermuda, disclosed in a Nov. 21 filing by a subsidiary in the Netherlands, could fuel the outrage spreading across Europe and in the U.S. over corporate tax dodging. Governments in France, the U.K., Italy and Australia are probing Google’s tax avoidance as they seek to boost revenue during economic doldrums.

The UK, in particular, has been cracking down hard on tax avoidance by multinational companies, including Google. “People want to know why companies which benefit from an infrastructure paid for by them and are paying people low wages who receive taxpayer-funded tax credits from the exchequer are not paying their fair share,” said Margaret Hodge, chair of the UK public accounts committee. .

In addition to corporate tax dodging, tax havens facilitate tax avoidance by the super-rich. According to the Tax Justice Network, the world’s wealthiest are shielding about $21 trillion in offshore tax havens. If that $21 trillion “was taxed at just 30 percent, this would generate tax revenues of nearly $200 billion — roughly twice the amount OECD countries spend on international development assistance.”

Security

Following Iran’s Lead, China Blocks Google

The Chinese government blocked Google websites today in what appears to be part of an escalating crack down on Chinese Internet users as the Communist Party goes through a leadership transition. Despite being the fifth most trafficked site in China, Google had previously considered leaving the Chinese market altogether in 2010 in response to Chinese filtering and a cyber attack on Gmail servers.

While Google’s Youtube has been blocked in China since 2009, today’s move affects all the core Google services, including Gmail, Play, Docs, Maps, and Analytics. The block on Google Analytics could have particularly complex repercussions for the web outside of China because it means Chinese users will not be tracked on the thousands of websites using the analytics tool.

Most reports indicate a relatively conservative economic and political block may be taking power in the current leadership transition, signaling trouble for foreign companies doing business in China–especially online, like Google. That conservative block already considers social media a thorn in its side, and likely won’t take as kindly to the type of criticism now being thrown at outgoing Chinese President Hu Jintao over social media. The threat of this unbridled freedom of expression may be the driving force behind the regime’s decision to block Google and other services key to routing Chinese censorship: Users have also reported difficulty accessing virtual private networks (VPNs) in recent weeks, a tool frequently relied on by users in China and other countries with limited online freedom to bypass restrictions.

China isn’t the first country to block Google services — their actions mirror Iran’s block in September, which was only partially lifted to allow Gmail access after complaints from Iranian officials. While China and its Great Fire Wall are largely discussed as among the most complex and restrictive Internet filtering regimes, Iran has been working towards cutting itself off from the internet entirely and replacing it with a closet network. The equipment behind that closed intranet was manufactured by Chinese company Huawei. The U.S. announced sanctions against Reza Taghipour, the minister behind Iran’s internet censorship program, citing his role in jamming satellite television broadcasts and restricting Internet connectivity. It’s highly unlikely China will face similar repercussions for their online censorship.

NEWS FLASH

France Reportedly Hits Google With $1 Billion Bill For Tax Dodging | Google is one of the worst abusers of tax havens, using complicated strategies to run its tax rate down into the single digits, even as it makes billions of dollars in profits. As Bloomberg News reported, Google’s profits “wind up in island havens that levy no corporate income taxes at all.” In France, at least, lawmakers have had enough, reportedly slapping the company with a $1 billion bill for past tax avoidance. France has been trying to pressure Google to pay more taxes on revenue made in the country. Google has denied receiving the large tax bill.

Health

Companies Fail To Regulate Pro-Smoking Content In Smartphone Apps

Since the adoption of the World Health Organization’s Framework Convention on Tobacco Control (WHO FCTC) by 168 member countries in 2005, it has been illegal for companies to publicly advertise tobacco products via any medium — including the internet. But as News-Medical reports, the tobacco industry is circumventing this public health convention by exploiting lax oversight in the smartphone app market, peddling pro-smoking, often youth-targeted digital content in violation of international and local laws.

A recent study on tobacco advertising undertaken by the University of Sidney finds that the popular Apple and Android app marketplaces are filled with “pro-tobacco” apps — i.e., apps that provide information on various tobacco brands, point users towards tobacco vendors, or contain depictions or simulations of tobacco product use — that do not meet most countries’ regulatory standards:

“The regulation of these apps is lagging behind the legislation in Australia and many other countries which ban tobacco advertising including through the internet and virtual stores,” said Nasser Dhim, lead author of the study and a PhD candidate from the [University of Sidney's] School of Public Health.

“This is despite the fact that the Apple and Android app stores have the technological infrastructure to block the sale of apps in accordance with local laws. As we show in our study Apple has already used this technology to ban access to certain content on its app store, in both China and Saudi Arabia.”

The study identified 107 English language pro-smoking apps looking at the two dominant marketplaces – 65 from the Apple app store and 42 from the Android app store.

By February 2012, the pro-smoking apps available in Google Play were downloaded by an average of 11 million users worldwide over the lifetime of the apps. These figures are only for the Android apps as those for Apple apps are unavailable but are likely to be even higher, given the greater popularity of its store.

Strikingly, many of these apps are available under categories more likely to appeal to children, such as “Entertainment” and “Games” — others, ironically, under “Lifestyle” and “Health and Fitness.” Smoking simulation apps might be cleverly branded as resources to help smokers kick the habit — but the University of Sydney study’s Nasser Dhim believes they actual serve a far more nefarious purpose. “This is because other independent studies have shown that such virtual images of cigarettes are more likely to trigger smoking craving behavior than to help them quit,” Dhim says. And youth-targeted advertising aimed at recruiting lifelong users at a vulnerable age is nothing new for alcohol and tobacco distributors.

Unfortunately, despite a concerted anti-tobacco backlash by elected officials in the last decade, global smoking rates are still quite high and investment in anti-smoking initiatives relatively low — this, despite the fact that investments in anti-tobacco programs can have up to a 50:1 return on investment.

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