Technology
TikTok Lite: EU closes addictive design case after TikTok pledges not to reinstate rewards mechanism
The European Commission has closed its investigation into the TikTok Lite rewards feature under the Digital Services Act (DSA), accepting the social media giant’s commitment to permanently withdraw the feature within the EU.
TikTok Lite’s “tasks and rewards” mechanism, launched in France and Spain earlier this 12 months, lets users earn points for completing actions within the app, resembling watching and liking videos. These points might be redeemed for Amazon vouchers. TikTok Lite is an alternate, lower-bandwidth version of the TikTok app that the corporate offers in some markets.
TikTok also agreed not to attempt to circumvent its commitment, for instance by launching the identical feature under a distinct name or implementing a version that serves as an equivalent alternative, according to the Commission. While the settlement covers the TikTok Lite rewards mechanism that the EU was investigating, it’s not a blanket ban on TikTok launching any rewards features in the longer term.
When the EU launched an investigation into the rewards feature in April, the Commission raised concerns that the design of the mechanism could negatively impact the mental health of young users since it “stimulates addictive behaviour”.
TikTok temporarily suspended its rewards mechanism within the EU shortly after the Commission opened an investigation. The EU threatened to use temporary powers to disable the feature while it investigated concerns that it encouraged people to spend excessive amounts of time on the app.
Briefing journalists on the situation, a senior Commission official said the enforcement body was pleased with the final result because it had managed to quickly deliver the intended results, ensuring that EU residents, including minors, were protected.
The settlement means the EC has not formally found that TikTok has breached the DSA, so there isn’t a penalty. However, if TikTok fails to honour its commitments, the Commission has stressed that the corporate might be immediately penalised under the DSA, which allows for penalties of up to 6% of world annual turnover without the necessity for a brand new investigation. So TikTok has a reasonably large incentive to comply here.
The Commission said it might monitor TikTok’s compliance with its obligations using existing procedures and powers under the DSA, including through Member State authorities that oversee compliance with the overall principles of the Regulation.
Commenting in an announcement, Thierry Breton, EU Commissioner for Internal Market, said: “The available brain time of young Europeans is not the currency of social media – and never will be. We have achieved the permanent withdrawal of the TikTok Lite Rewards programme, which could have had highly addictive consequences. The DSA is in full swing.”
TikTok spokesperson Elliott Burton sent TechCrunch an announcement concerning the settlement: “We always strive to work constructively with the European Commission and other regulators. TikTok is pleased to have reached an amicable resolution and to have withdrawn the TikTok Lite rewards program, which was launched in France and Spain in April and which we had already voluntarily suspended.”
While the TikTok DSA case has now been closed, one other, broader investigation that was announced in February remains to be ongoing.
The case involves TikTok’s core algorithm, amongst other things. The commission said it was concerned that the design of the tracking-based suggestion engine could lead on to “rabbit hole effects,” where users who watch one video on a subject might be advisable more extreme videos, potentially amplifying harmful content, resembling videos promoting eating disorders.
The EU can be concerned that TikTok does not apply sufficiently robust age-based measures to protect children from accessing inappropriate content. TikTok’s compliance with the DSA’s transparency requirements can be under scrutiny.
For more information on how the DSA and its related regulation, the Digital Markets Act (DMA), will impact Big Tech platforms, see our previous reports.
Technology
OpenAI may change its nonprofit structure next year
It looks increasingly likely that OpenAI will soon change its complex corporate structure.
Reports earlier this week suggested the AI company was in talks to boost $6.5 billion at a pre-funding valuation of $150 billion. Now Reuters reports that The deal is contingent on OpenAI successfully restructuring and lifting the profit cap for investors.
In fact, based on FortuneCo-founder and CEO Sam Altman told employees at a company-wide meeting that OpenAI’s structure will likely change next year, bringing it closer to a standard for-profit business. OpenAI is currently structured in order that its for-profit arm is controlled by a nonprofit, which seems to have frustrated investors.
“We remain focused on building AI that benefits everyone, and as we’ve said before, we’re working with our board to ensure we’re best positioned to deliver on our mission,” OpenAI said in an announcement. “The nonprofit is core to our mission and will continue to exist.”
Technology
LinkedIn games are really cool
I actually have a weakness that I’m ashamed of, and it isn’t that I’ve watched all of Glee (yes, even the terrible later seasons) or that I’ve read an incredible amount of Harry Potter fan fiction in my life.
My little weakness is playing LinkedIn games.
To answer the plain query: Wait, LinkedIn has games? Yes. In May, LinkedIn launched three puzzle games via LinkedIn News, like New York Times game knockoffs. There’s the logic puzzle Queens (my favorite), the word game Crossclimb (pretty good), and the association game Pinpoint (not great, but oh well).
LinkedIn is taking the classic tech strategy of seeing what works for one more company after which trying to copy that success, even when it could appear odd to play games on knowledgeable networking platform. But it’s no wonder NYT Games inspired that inspiration. In a way The New York Times is a gaming company now – from December 2023 users I spent more time within the NYT Games app than within the news app.
LinkedIn isn’t alone. Everyone has games now. Apple News. Netflix. YouTube. There are so many games we are able to take pleasure in. And yet, once I finish my various New York Times puzzles, I still want more. It’s not that I feel like playing Crossclimb LinkedIn before Connections, however the games are adequate to provide me that sweet dopamine rush.
I often play LinkedIn games in the course of the workday (sorry to my boss). Sometimes it’s because I’m on LinkedIn to envision facts or look up a source, but then I remember I can spare a number of minutes for slightly game. Other times, my mind is foggy from gazing the identical draft of an article for too long, and taking a break to resolve a colourful Queens puzzle makes it easier to return and revisit that Google doc.
But it turns on the market’s a scientific explanation for why we love these quick, once-a-day puzzles a lot.
I recently spoke with DeepWell DTx cofounder Ryan Douglas, whose company relies on the concept playing video games (moderately) can have a positive impact on mental health. In some cases, the transient distraction of a game can pull us out of a negative thought spiral or help us approach an issue from a brand new perspective.
“If you’re playing Tetris, for example, you can’t have a long conversation in your head about how terrible you are, how much you suck, what’s going to happen next week, and so on,” Douglas told TechCrunch.
On a neurobiological level, Douglas explained that after we play, we activate the limbic system within the brain, which is answerable for coping with stress. But even when these stressors are simulated, they accustom the brain to coping with that stress in some ways.
“You start learning on a subconscious level, creating new neural pathways at an accelerated rate and preferentially selecting them on a subconscious level to deal with those problems in the future,” he said. “If you deal with (the stressor) in that particular environment, you gain agency. You have control.”
That’s to not say we must always play Pokémon all day—the video game development tools DeepWell creates are approved for therapeutic use in 15-minute doses. Maybe that’s why we’re so infatuated with games like Wordle, and other games The New York Times (and LinkedIn) has written which have a finite ending. You solve one puzzle a day, and then you definately move on to the following.
Wordle creator Josh Wardle spoke to TechCrunch about his viral success even before The New York Times picked up his game.
“I’m a little suspicious of apps and games that want your endless attention — I worked in Silicon Valley, for example. I know why they do that,” Wardle said. “I think people have an appetite for things that clearly don’t want anything from you.”
But Wardle is correct—after all my beloved LinkedIn games want something from me: my attention. And to be honest, I’ve spent rather a lot more time on LinkedIn in recent months than I ever have.
According to LinkedIn’s data, my behavior isn’t an anomaly. The company found that latest player engagement has increased by about 20% week over week because the starting of July. LinkedIn has also seen strong traction in users starting conversations after playing games. After you finish a game, you may see which of your connections also played, which I imagine some people see as a chance to #network. I don’t do this, but on the other hand, most of my LinkedIn conversations are just me messaging my friends “hi” because for some reason I find that funny.
So go on LinkedIn and have a good time as much as you may… after which, about 4 minutes later, return to the relentless grind of worldwide capitalism.
Technology
These two friends created a simple tool to transfer playlists between Apple Music and Spotify, and it works great
Last yr, I had the misfortune of losing all my playlists after I moved from Apple Music to Spotify. For me, playlists are necessary. They’re snapshots of a certain period in your life; possibly your summer of 2016 had a soundtrack. But traditionally, streaming music services don’t make it easy to take your playlists with you to other platforms.
You can imagine how joyful I used to be to see that Apple Music has created latest playlist uploader through the Data Transfer Initiative (DTI), a group founded by Apple, Google, and Meta to create data transfer tools. The Digital Markets in Europe Act requires these designated “gatekeepers” to fund data transfer tools as a part of a broader solution to Big Tech’s strategy of blocking users from their platforms.
Finally! There was only one big problem. The tools don’t work with the world’s hottest music service, Spotify, which apparently didn’t catch the wave of knowledge transfer (or possibly the regulator doesn’t tell them to). The DTI tool only transfers data between Apple Music and YouTube Music, making it much less useful for most individuals.
DTI Executive Director Chris Riley can be fed up with Big Tech’s blocking policies. He’s trying to get more firms to join the negotiations and make their services more portable.
“Over the last decade, we’ve kind of blended into this world, just feeling trapped,” Riley told TechCrunch. “I don’t think enough people know that this is something they need to know.”
With DTI limitations in mind, Riley suggested I move my playlists from Apple Music to Spotify using Soundfree third-party tool. Instead of working directly with streaming services, Soundiiz builds portability tools through existing APIs and acts as a translator between services. Within minutes, I used to be able to connect my accounts, transfer my playlists, and start listening to my old Apple Music playlists on Spotify. It was amazing and easy.
Soundiiz allows you to transfer playlists between Apple Music, Spotify, YouTube Music, Amazon Music, Tidal, Deezer, SoundCloud, and 20 other streaming services I’ve never heard of. There’s a simple user interface for connecting streaming services and choosing the playlists you would like to transfer, including ones another person has created.
The story behind Soundiiz may explain why it works so well and cheaply. It was created in 2013 by two friends from France, Thomas Magnano and Benoit Herbreteau, who loved listening to music while coding together. In the evenings, they decided to create a music search interface with input from everywhere in the web. In the method, they created a useful tool.
They never created a music search interface, however the playlist uploader became Soundiiz.
“I had to manipulate the API and test the fit between services. And while I was doing that, I was creating playlists and moving them between services, just for me internally,” Magnano told TechCrunch. “I presented this feature to a colleague of mine and we thought, ‘Oh, this is useful to me; maybe it’s useful to someone else.’”
In 2015, Soundiiz got its big break when it partnered with Tidal, the music service founded by Jay-Z. The music platform was trying to make it easier for people to leave Spotify and join Tidal with all the identical playlists, and Soundiiz helped with that. But Magnano says they made sure Tidal also let people export playlists, not only import them — something they require from every music service API they work with.
Then a lot more people began using the service, and the founders made Soundiiz their full-time job, but they kept their values. The two founders make a living from Soundiiz, but they tell TechCrunch they’re “not looking to get rich.” Magnano says Soundiiz has never sought outside investment to keep prices low, and the founders retain control over their project.
There are limitations to the free Soundiiz though – a number of the longer playlists might be shortened (limited to 200 songs). You even have to transfer playlists one after the other, and every one takes about a minute, so transferring a dozen or so playlists can take a while. Soundiiz offers a premium plan ($4.50 monthly, which you’ll cancel after transferring) to get around these limitations.
The two founders are still the one employees of Soundiiz, regardless that the corporate has grown: Soundiiz has helped hundreds of thousands of individuals move over 220 million playlists over the past 10 years. According to Magnano, they’ve never spent a dime on marketing, but he says they’ve never had to.
“If you were to Google ‘how to transfer Deezer to Spotify’ in 2012, there was no answer,” Magnano said. “So Soundiiz became the first result in Google search when we launched, and we’ve been doing great in SEO ever since.”
Magnano says Spotify likely has more to lose than to gain by creating a playlist uploader like Apple and Google, and he doesn’t expect that to change anytime soon. However, he says that every one of those streaming services are aware of what Soundiiz is doing and are okay with it — some even promote it of their FAQs. That said, it’s unlikely that any of them would promote playlist uploaders like Soundiiz greater than this.
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