Technology
UK privacy watchdog takes credit for rise of ‘consent or pay’ rule
The UK’s data protection watchdog says its crackdown on sites that don’t ask visitors to consent to having their browsing activity tracked and profiled for ad targeting is bearing fruit. However, it admits that some of the changes prompted by the crackdown have seen sites adopt a controversial type of paywall that requires users to pay a fee to access content or opt in to being tracked and profiled for ad targeting (also often known as “pay or consent”).
The ICO didn’t disclose which websites had switched to a pay-or-agree model because it began asking questions on their tracking cookies. But it did name and shame several corporations for failing to comply with other cookie rules.
On Tuesday local time, the Information Commissioner’s Office (ICO) announced it had reprimanded Bonne Terre, the corporate behind Sky Betting and Gaming, for unlawfully processing personal data without consent.
Research has shown that data tracking can do loads of harm to individuals with addiction problems, which can explain why the general public rebuke of the ICO focused on an organization within the gambling sector.
“From 10 January to 3 March 2023, Sky Betting and Gaming processed users’ personal data and shared it with advertising technology companies as soon as they accessed the SkyBet website – before they had the opportunity to accept or reject advertising cookies,” the ICO wrote in a press release. “This meant that their personal data could be used to target them with personalised adverts without their prior consent or knowledge.”
The regulator told TechCrunch that it selected to issue a warning moderately than a sanction on this case since it believes it’s a proportionate use of its powers — “based on what will achieve the best outcome, and based on our priorities and limited resources.”
“In this case, we took into account Bonne Terre’s positive engagement with the ICO and the steps it has taken to improve compliance and considered that a reprimand was the most proportionate action,” ICO spokesman James Huyton added.
The reprimand is an element of a wider crackdown by the ICO on the use of cookies without consent, with the regulator highlighting a review of the UK’s “top 100 sites” last yr that identified “problems” with the way in which greater than half of sites used promoting cookies. then he wrote to 53 involved sites, warning they face enforcement motion in the event that they don’t change the way in which they deploy promoting cookies to comply with data protection law. The ICO suggests the outreach has helped remove some non-compliant cookie banners.
The regulator declined to verify the identity of any of the opposite sites contacted as part of its cookie compliance check. However, reporting the outcomes of its flurry of letters, the ICO said 52 of the sites it approached had made changes to the way in which they collected consent to tracking. The ICO said it had observed a number of changes, including some sites moving to a so-called “pay or consent” model – where visitors are blocked from accessing site content unless they consent to tracking or pay a fee.
Pay or consent is a controversial approach that’s currently being challenged legally and regulatory-wise within the European Union, including by privacy and consumer protection groups. Meta’s implementation of pay or consent can also be suspected of violating the bloc’s fair market principles. (The ICO declined to say whether Meta was one of the positioning owners it contacted about cookie consent.)
In a press release accompanying the report on the outcomes of the cookie banner crackdown, Stephen Bonner, deputy commissioner on the ICO, said the intervention had led to 99 of the highest 100 UK web sites “either already offering meaningful choice in advertising cookies or making changes to get people’s consent”. Which is sort of an either/or.
Bonner’s statement doesn’t provide any data to quantify the actual impact of the ICO on consent selections for UK web users. He says only that “some” of the changes observed included the introduction of a reject all button on sites that previously didn’t have one; others involved sites making their accept all and reject all buttons equally visible; and other sites introduced alternatives corresponding to “agree or pay” – a business model the ICO is “currently reviewing” for legality.
The gold standard for compliance with the UK’s General Data Protection Regulation, which is predicated on the EU framework of the identical name, could be to present website visitors with: easy yes/no selection accept or decline tracking. Sites that fail to accomplish that—for example, by only allowing users to simply accept but not decline tracking, or by making it easy to click a tracking acceptance button but hiding the decline option from multiple menus in confusingly worded settings—needs to be penalized for failing to comply. But too often, they get away with using manipulative, hidden patterns to steal consent.
The ICO must take some of the blame for years of ignoring warnings from privacy activists in regards to the ad tech industry’s unchecked data collection. It also didn’t act decisively by itself concerns in regards to the sector’s data collection practices, as set out in a 2019 report – for example, closing a grievance without issuing a choice in 2020 since it opted for soft industry engagement moderately than vigorous enforcement.
Last yr’s cookie harvesting campaign looks like an attempt by the ICO to finally see itself do something after years of exempting adtech players from compliance. However, its actions may raise questions provided that enforcement has apparently fuelled a rise within the use of controversial ‘pay or agree’ tactics. It’s also interesting to think about the sites it chooses to call and shame in comparison with others that also don’t offer users a transparent yes/no selection, but whose names we have now to infer.
As well as publicly reprimanding Sky Betting, the ICO has decided to call and shame gossip website Tattle Life – which it says was the just one of 53 web sites contacted that didn’t become involved – and said it might now launch an investigation into its use of cookies and its “apparent failure” to register with the ICO.
What about sites which have switched to implementing “agree or pay” cookie banners, meaning they don’t offer web users a free selection to opt out of tracking?
Tech giant Meta entered the sport last yr, deciding to force ad-tracking consent from Facebook and Instagram users by imposing a “pay us or let us track you” paywall on its formerly free social networks. Since then, a growing number of British news sites have imitated the tactic, with “pay or let us” paywalls popping up in all places previously free, ad-supported journalism was available.
We asked the ICO for its views on the creep and growth of “pay or agree”, including Meta’s adoption of the tactic, and a spokesperson referred to Bonner’s previous comments, writing: “Following engagement with Meta, we are investigating how UK data protection law would apply to any potential ad-free subscription service. We expect Meta to consider any data protection concerns we raise before rolling out a subscription service to UK users.”
At the start of this yr, ICO conducted consultations on “pay or consent” business models saying it hopes to supply an initial view of the approach but has not yet adopted a transparent public position. And on this regulatory gray area, loads of “consent or pay(wall)” is happening.
“When it comes to opt-in or pay models, we have told companies that they are not transparent with the public and that they must offer people meaningful choice about how their data is used and shared on their websites,” the spokesperson added. “Some companies have introduced alternative methods of obtaining consent, such as ‘opt-in or pay’, which we are currently considering as a business model following our consultation in early 2024. We will provide our position later in the year. In the meantime, we will continue to monitor developments in new approaches.”
Technology
The company is currently developing washing machines for humans
Forget about cold baths. Washing machines for people may soon be a brand new solution.
According to at least one Japanese the oldest newspapersOsaka-based shower head maker Science has developed a cockpit-shaped device that fills with water when a bather sits on a seat in the center and measures an individual’s heart rate and other biological data using sensors to make sure the temperature is good. “It also projects images onto the inside of the transparent cover to make the person feel refreshed,” the power says.
The device, dubbed “Mirai Ningen Sentakuki” (the human washing machine of the longer term), may never go on sale. Indeed, for now the company’s plans are limited to the Osaka trade fair in April, where as much as eight people will have the option to experience a 15-minute “wash and dry” every day after first booking.
Apparently a version for home use is within the works.
Technology
Zepto raises another $350 million amid retail upheaval in India
Zepto has secured $350 million in latest financing, its third round of financing in six months, because the Indian high-speed trading startup strengthens its position against competitors ahead of a planned public offering next yr.
Indian family offices, high-net-worth individuals and asset manager Motilal Oswal invested in the round, maintaining Zepto’s $5 billion valuation. Motilal co-founder Raamdeo Agrawal, family offices Mankind Pharma, RP-Sanjiv Goenka, Cello, Haldiram’s, Sekhsaria and Kalyan, in addition to stars Amitabh Bachchan and Sachin Tendulkar are amongst those backing the brand new enterprise, which is India’s largest fully national primary round.
The funding push comes as Zepto rushes so as to add Indian investors to its capitalization table, with foreign ownership now exceeding two-thirds. TechCrunch first reported on the brand new round’s deliberations last month. The Mumbai-based startup has raised over $1.35 billion since June.
Fast commerce sales – delivering groceries and other items to customers’ doors in 10 minutes – will exceed $6 billion this yr in India. Morgan Stanley predicts that this market shall be value $42 billion by 2030, accounting for 18.4% of total e-commerce and a pair of.5% of retail sales. These strong growth prospects have forced established players including Flipkart, Myntra and Nykaa to cut back delivery times as they lose touch with specialized delivery apps.
While high-speed commerce has not taken off in many of the world, the model seems to work particularly well in India, where unorganized retail stores are ever-present.
High-speed trading platforms are creating “parallel trading for consumers seeking convenience” in India, Morgan Stanley wrote in a note this month.
Zepto and its rivals – Zomato-owned Blinkit, Swiggy-owned Instamart and Tata-owned BigBasket – currently operate on lower margins than traditional retail, and Morgan Stanley expects market leaders to realize contribution margins of 7-8% and adjusted EBITDA margins to greater than 5% by 2030. (Zepto currently spends about 35 million dollars monthly).
An investor presentation reviewed by TechCrunch shows that Zepto, which handles greater than 7 million total orders every day in greater than 17 cities, is heading in the right direction to realize annual sales of $2 billion. It anticipates 150% growth over the following 12 months, CEO Aadit Palicha told investors in August. The startup plans to go public in India next yr.
However, the rapid growth of high-speed trading has had a devastating impact on the mom-and-pop stores that dot hundreds of Indian cities, towns and villages.
According to the All India Federation of Consumer Products Distributors, about 200,000 local stores closed last yr, with 90,000 in major cities where high-speed trading is more prevalent.
The federation has warned that without regulatory intervention, more local shops shall be vulnerable to closure as fast trading platforms prioritize growth over sustainable practices.
Zepto said it has created job opportunities for tons of of hundreds of gig employees. “From day one, our vision has been to play a small role in nation building, create millions of jobs and offer better services to Indian consumers,” Palicha said in an announcement.
Regulatory challenges arise. Unless an e-commerce company is a majority shareholder of an Indian company or person, current regulations prevent it from operating on a listing model. Fast trading corporations don’t currently follow these rules.
Technology
Wiz acquires Dazz for $450 million to expand cybersecurity platform
Wizardone of the talked about names within the cybersecurity world, is making a major acquisition to expand its reach of cloud security products, especially amongst developers. This is buying Dazzlespecialist in solving security problems and risk management. Sources say the deal is valued at $450 million, which incorporates money and stock.
This is a leap within the startup’s latest round of funding. In July, we reported that Dazz had raised $50 million at a post-money valuation of just below $400 million.
Remediation and posture management – two areas of focus for Dazz – are key services within the cybersecurity market that Wiz hasn’t sorted in addition to it wanted.
“Dazz is a leader in this market, with the best talent and the best customers, which fits perfectly into the company culture,” Assaf Rappaport, CEO of Wiz, said in an interview.
Remediation, which refers to helping you understand and resolve vulnerabilities, shapes how an enterprise actually handles the various vulnerability alerts it could receive from the network. Posture management is a more preventive product: it allows a company to higher understand the scale, shape and performance of its network from a perspective, allowing it to construct higher security services around it.
Dazz will proceed to operate as a separate entity while it’s integrated into the larger Wiz stack. Wiz has made a reputation for itself as a “one-stop shop,” and Rappaport said the integrated offering will proceed to be a core a part of it.
He believes this contrasts with what number of other SaaS corporations are built. In the safety industry, there are, Rappaport said, “a lot of Frankenstein mashups where companies prioritize revenue over building a single technology stack that actually works as a platform.” It could be assumed that integration is much more necessary in cybersecurity than in other areas of enterprise IT.
Wiz and Dazz already had an in depth relationship before this deal. Merat Bahat — the CEO who co-founded Dazz with Tomer Schwartz and Yuval Ofir (CTO and VP of R&D, respectively) — worked closely with Assaf Rappaport at Microsoft, which acquired his previous startup Adallom.
After Rappaport left to found Wiz together with his former Adallom co-founders, CTO Ami Luttwak, VP of Product Yinon Costica and VP of R&D Roy Reznik, Bahat was one in all the primary investors. Similarly, when Bahat founded Dazz, Assaf was a small investor in it.
The connection goes deeper than work colleagues. Bahat and Rappaport are also close friends, and she or he was the second family of Mickey, Rappaport’s beloved dog, referred to as Chief Dog Officer Wiz (together with LinkedIn profile). Once the deal was done, the 2 faced two very sad events: each Bahat and Mika’s mother died.
“We hope for a new chapter of positivity,” Bahat said. The cycle of life does indeed proceed.
Rumors of this takeover began to appear earlier this month; Rappaport confirmed that they then began talking seriously.
But that is not the one M&A conversation Wiz has gotten involved in. Earlier this 12 months, Google tried to buy Wiz itself for $23 billion to construct a major cybersecurity business. Wiz walked away from the deal, which might have been the biggest in Google’s history, partly because Rappaport believed Wiz could turn into a fair larger company by itself terms. And that is what this agreement goals to do.
This acquisition is a test for Wiz, which earlier this 12 months filled its coffers with $1 billion solely for M&A purposes (it has raised almost $2 billion in total, and we hear the subsequent round will close in just a few weeks). . Other offers included purchasing Gem security for $350 million, but Dazz is its largest acquisition ever.
More mergers and acquisitions could also be coming. “We believe next year will be an acquisition year for us,” Rappaport said.
In an interview with TC, Luttwak said that one in all Wiz’s priorities now’s to create more tools for developers that have in mind what they need to do their jobs.
Enterprises have made significant investments in cloud services to speed up operations and make their IT more agile, but this shift has include a significantly modified security profile for these organizations: network and data architectures are more complex and attack surfaces are larger, creating opportunities for malicious hackers to find ways to to hack into these systems. Artificial intelligence makes all of this far more difficult when it comes to malicious attackers. (It’s also a chance: the brand new generation of tools for our defense relies on artificial intelligence.)
Wiz’s unique selling point is its all-in-one approach. Drawing data from AWS, Azure, Google Cloud and other cloud environments, Wiz scans applications, data and network processes for security risk aspects and provides its users with a series of detailed views to understand where these threats occur, offering over a dozen products covering the areas, corresponding to code security, container environment security, and provide chain security, in addition to quite a few partner integrations for those working with other vendors (or to enable features that Wiz doesn’t offer directly).
Indeed, Wiz offered some extent of repair to help prioritize and fix problems, but as Luttwak said, the Dazz product is solely higher.
“We now have a platform that actually provides a 360-degree view of risk across infrastructure and applications,” he said. “Dazz is a leader in attack surface management, the ability to collect vulnerability signals from the application layer across the entire stack and build the most incredible context that allows you to trace the situation back to engineers to help with remediation.”
For Dazz’s part, once I interviewed Bahat in July 2024, when Dazz raised $50 million at a $350 million valuation, she extolled the virtues of constructing strong solutions and this week said the third quarter was “amazing.”
“But market dynamics are what trigger these types of transactions,” she said. She confirmed that Dazz had also received takeover offers from other corporations. “If you think about the customers and joint customers that we have with Wiz, it makes sense for them to have it on one platform.”
And a few of Dazz’s competitors are still going it alone: Cyera, like Dazz, an authority in attack surface management, just yesterday announced a rise of $300 million at a valuation of $5 billion (which confirms our information). But what’s going to he do with this money? Make acquisitions, after all.
Wiz says it currently has annual recurring revenue of $500 million (it has a goal of $1 billion ARR next 12 months) and has greater than 45% of its Fortune 100 customers. Dazz said ARR is within the tens of hundreds of thousands of dollars and currently growing 500% on a customer base of roughly 100 organizations.
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