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| Here's a look at today's tech briefing: - House passes bill that could ban TikTok in the U.S.
- Spotify launches music videos in select countries.
- IBM to cut some marketing staff amid AI push.
- Apple making some iPhone 15 models in Brazil.
- Meta accuses ex-VP of stealing documents.
- Neil Young returns to Spotify after Joe Rogan boycott.
Beth
p/beth-duckett | |
| 1 | | The U.S. House today overwhelmingly passed a bill that would force TikTok's Chinese parent to sell the app or face a nationwide ban. The bill passed the House with rare bipartisan support, 352-65, and now faces a more difficult path in the Senate. More: - The law would require ByteDance, TikTok's parent company, to sell the app within six months or risk being banned from U.S. app stores and web hosting services.
- Lawmakers argue TikTok is a national security threat because ByteDance could be forced to provide user data to the Chinese government or manipulate the platform to sway American views.
- As it heads to the Senate, the bill's future is uncertain. Democratic leader Sen. Chuck Schumer hasn't yet committed to a vote, while Republican Sen. Rand Paul said he would block the bill.
- President Biden said last week that he would sign the bill. White House national security adviser Jake Sullivan said the goal is to end Chinese ownership, not ban TikTok.
Zoom out: - TikTok's strategy is to exhaust all legal options, with a sale viewed as a last resort, sources told Bloomberg.
- The company has flooded users with push notifications, encouraging them to reach out to representatives to oppose the bill, causing congressional offices to be bombarded with calls.
- The Chinese government would also have to approve a sale, which it has vehemently opposed.
- Free speech and digital rights groups, including the ACLU, also oppose the bill. TikTok argues that the legislation would result in a total ban in the U.S., potentially denying tens of millions of Americans their constitutional right to free expression.
- As of January, the U.S. had the largest TikTok audience of any country by far, with nearly 150 million users active on the platform.
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| 2 | | Spotify is introducing music videos to paid users in select markets, not including the U.S., as it seeks to challenge dominant player YouTube. The audio streamer is launching the limited beta in 11 countries, allowing ad-free video watching on iOS, Android, desktop, and TV. More: - As of today, music videos are available for Spotify premium users in Brazil, Colombia, Germany, Indonesia, Italy, Kenya, Netherlands, Philippines, Poland, Sweden, and the U.K.
- The catalog is currently limited, with artists like Ed Sheeran, Doja Cat, Ice Spice, Aluna, and Asak.
- Spotify app users can switch between audio and video versions of a track with a dedicated toggle.
Zoom out: - Spotify plans to roll out the music videos to more countries, though it hasn't said where.
- While mainly an audio streamer, Spotify has also supported video podcasts and short clips that let artists connect directly with fans.
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| 3 | | IBM informed staff on Tuesday that it will cut jobs in its marketing and communications division. The company said the job cuts align with its "rebalancing" effort to match its workforce skills with client needs in areas like AI and hybrid cloud. More: - IBM's Jonathan Adashek disclosed the layoffs during a seven-minute meeting, though the exact number of cuts is unclear, a source told CNBC.
- In its January earnings call, the company said it planned to cut 1.5% of its global workforce.
- CFO James Kavanaugh told Bloomberg that the layoffs would affect about 3,900 jobs, but added the company plans to hire in "higher-growth areas."
- IBM said it plans to end 2024 with about the same headcount as a year earlier.
Zoom out: - Last May, IBM CEO Arvind Krishna said the company would stop recruiting for certain positions that could potentially be replaced by AI, specifically focusing on back-office functions such as certain HR roles.
- Krishna predicted that about 30% of these roles, employing around 26,000 employees at IBM, could be replaced by AI and automation within five years
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| 4 | | Apple is now producing some iPhone 15 models in Brazil to avoid high import taxes, according to MacMagazine. The move could lower the iPhone 15's price in Brazil, where the 128GB model has sold for R$7,300 ($1,460), almost double its U.S. starting price. More: - Apple is reportedly assembling the 6.1-inch iPhone 15 at the Foxconn facility in São Paulo.
- The iPhone 15 Plus and both Pro models sold in Brazil are imported from China, where most Apple devices are still made.
- Brazilian consumers can identify if the model was made locally by looking for the "BR/A" model number, as opposed to "BE/A" and "BZ/A" for imports.
Zoom out: - Beyond boosting sales, the move is also part of Apple's efforts to diversify manufacturing away from China.
- Apple plans to shift a quarter of its iPhone manufacturing, or more than 50 million phones, to India within the next 2-3 years.
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| 5 | | Meta has sued a former VP for allegedly stealing confidential documents before leaving the company for an AI startup. Meta's lawsuit accuses Dipinder Singh Khurana of breaching his contract by taking sensitive, non-public documents about the company's talent and business contracts. More: - Khurana worked at Meta for 12 years, most recently as VP of infrastructure, before departing last year for a stealth AI startup.
- In its lawsuit, Meta alleges Khurana uploaded confidential documents about employees and business contracts to his personal Google Drive and Dropbox just before leaving.
- One of the documents allegedly listed the names, roles, skills, performance, and pay of Meta employees.
- Meta claims eight employees named in the documents left to join the same AI startup last year.
Zoom out: - Khurana did not respond to Bloomberg's request for comment. He is currently listed as a supply chain leader for Omniva, a data center startup that recently emerged from stealth.
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| 6 | | Musician Neil Young is returning his music to Spotify, over two years after removing it in protest of the platform's handling of Covid misinformation on "The Joe Rogan Experience" podcast. Young said he is returning because Amazon and Apple have "started serving the same disinformation" in podcasts, and he can't withdraw from them because his songs would have "very little streaming outlet to music lovers at all." More: - Young left Spotify in 2022 due to its deal with Joe Rogan, whose podcast he accused of spreading false information about COVID-19 and vaccines.
- In 2020, Spotify secured exclusive rights to Rogan's "The Joe Rogan Experience" in a deal valued at $200M.
- Spotify recently signed a deal ending its exclusivity with Rogan, allowing the podcast to be available on other platforms like Apple Podcasts, YouTube, and Amazon Music.
- Before leaving, Young said Spotify accounted for 60% of his total streaming earnings worldwide.
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 | AI and technology writer | | Beth is a contributing editor and writer of Inside's AI and Tech newsletters. She has written for publications including USA Today, the Arizona Business Gazette, and The Arizona Republic, where she received recognition with a Pulitzer Prize nomination and a First Amendment Award for collaborative reporting on state pension cost increases. You can reach her at Beth.Duckett@yahoo.com. | | This newsletter was edited by Eduardo Garcia | |
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