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Google, Facebook and Twitter threaten to leave Pakistan over censorship law

Global internet companies Facebook, Google and Twitter and others have banded together and threatened to leave Pakistan after the South Asian nation granted blanket powers to local regulators to censor digital content.

Earlier this week, Pakistan Prime Minister Imran Khan granted the Pakistan Telecommunication Authority the power to remove and block digital content that pose “harms, intimidates or excites disaffection” toward the government or in other ways hurt the “integrity, security, and defence of Pakistan.”

Through a group called the Asia Internet Coalition Asia (AIC), the tech firms said that they were “alarmed” by the scope of Pakistan’s new law targeting internet firms.” In addition to Facebook, Google, and Twitter, AIC represents Apple, Amazon, LinkedIn, SAP, Expedia Group, Yahoo, Airbnb, Grab, Rakuten, Booking.com, Line, and Cloudflare.

If the message sounds familiar, it’s because this is not the first time these tech giants have publicly expressed their concerns over the new law, which was proposed by Khan’s ministry in February this year.

After the Pakistani government made the proposal earlier this year, the group had threatened to leave, a move that made the nation retreat and promise an extensive and broad-based consultation process with civil society and tech companies.

That consultation never happened, AIC said in a statement on Thursday, reiterating that its members will be unable to operate in the country with this law in place.

“The draconian data localization requirements will damage the ability of people to access a free and open internet and shut Pakistan’s digital economy off from the rest of the world. It’s chilling to see the PTA’s powers expanded, allowing them to force social media companies to violate established human rights norms on privacy and freedom of expression,” the group said in a statement.

“The Rules would make it extremely difficult for AIC Members to make their services available to Pakistani users and businesses. If Pakistan wants to be an attractive destination for technology investment and realise its goal of digital transformation, we urge the Government to work with industry on practical, clear rules that protect the benefits of the internet and keep people safe from harm.”

Under the new law, tech companies that fail to remove or block the unlawful content from their platforms within 24 hours of notice from Pakistan authorities also face a fine of up to $3.14 million. And like its neighboring nation, India, — which has also proposed a similar regulation with little to no backlash — Pakistan now also requires these companies to have local offices in the country.

The new rules comes as Pakistan has cracked down on what it deems to be inappropriate content on the internet in recent months. Earlier this year, it banned popular mobile game PUBG Mobile and last month it temporarily blocked TikTok.

Countries like Pakistan and India contribute little to the bottomline for tech companies. But India, which has proposed several protectionist laws in recent years, has largely escaped any major protest from global tech companies because of its size. Pakistan has about 75 million internet users.

By contrast, India is the biggest market for Google and Facebook by users. “Silicon Valley companies love to come to India because it’s an MAU (monthly active users) farm,” Kunal Shah, a veteran entrepreneur, said in a conference in 2018.

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Week in Review: Snapchat strikes back

Hello hello, and welcome back to Week in Review. Last week, I wrote about the possibility of a pending social media detente, this week I’m talking about a rising threat to Facebook’s biz.

If you’re reading this on the TechCrunch site, you can get this in your inbox here, and follow my tweets here. And while I have you, my colleague Megan Rose Dickey officially launched her new TechCrunch newsletter, Human Capital! It covers labor and diversity and inclusion in tech, go subscribe!


Image: TechCrunch

First off, let me tell you how hard it was to resist writing about Quibi this week, but those takes came in very hot the second that news dropped, and I wrote a little bit about it here already. All I will say, is that while Quibi had its own unique mobile problems, unless Apple changes course or dumps a ton of money buying up content to fill its back library, I think TV+ is next on the chopping block.

This week, I’m digging into another once-maligned startup, though this one has activated quite the turnaround in the last two years. Snap, maker of Snapchat, delivered a killer earnings report this week and as a result, investors deemed to send the stock price soaring. Its market cap has nearly doubled since the start of September and it’s clear that Wall Street actually believes that Snap could meaningfully increase its footprint and challenge Facebook.

The company ended the week with a market cap just short of $65 billion, still a far cry from Facebook $811 billion, but looking quite a bit better than it was in early 2019 when it was worth about one-tenth of what it is today. All of a sudden, Snap has a new challenge, living up to high expectations.

The company shared that in Q3, it delivered $679 million in reported revenue, representing 52% year-over-year growth. The company currently has 249 million daily active users, up 4% over last quarter.

Facebook will report its Q3 earnings next week, but they’re still in a different ballpark for the time being, even if their market cap is just around 12 times Snap’s, their quarterly revenue from Q2 was about 28 times higher than what Snap just reported. Meanwhile, Facebook has 1.79 billion daily actives, just about 7 times Snapchat’s numbers.

Snap has spent an awful lot of time proving the worth of features they’ve been pushing for years, but the company’s next challenge might be diversifying their future. The company has been flirting with augmented reality for years, waiting patiently for the right moment to expand its scope, but Snap hasn’t had the luxury of diverting resources away from efforts that don’t send users back to its core product. Some of its biggest launches of 2020 have been embeddable mini apps for things like ordering movie tickets or bite-sized social games that bring even more social opportunities into chat.

Snap’s laser focus here has obviously been a big part of its recovery, but as expectations grow, so will demands that the company moves more boldly into extending its empire. I don’t think Snapchat needs to buy Trader Joe’s or its own ISP quite yet, but working towards finding its next platform will prevent the service from settling for Twitter-sized ambitions and give them a chance at finding a more expansive future.


Image Credits: Bryce Durbin

Trends of the Week

These next few weeks are guaranteed to be dominated by U.S. election news, so enjoy the diversity of news happenings out there while it lasts…

Quibi is dead
Few companies that have raised so much money have appeared quite dead-on-arrival as Jeffrey Katzenberg’s mobile video startup Quibi. This week, the company made the decision to shut down operations and call it quits. More here.

Pakistan unbans TikTok
It appears that the cascading threat of country-by-country TikTok bans has stopped for now. This week, TikTok was unblocked in Pakistan with the government warning the company that it needed to actively monitor content or it would face a permanent ban. Read more here.

Facebook Dating arrives in Europe
Facebook Dating hasn’t done much to unseat Tinder stateside, but the service didn’t even get the chance to test its luck in Europe due to some regulatory issues relating to its privacy practices. Now, it seems Facebook has landed in the tentative good graces of regulatory bodies and has gotten the go ahead to launch the service in a number of European countries. Read more here.

Until next week,

Lucas M.

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