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2025-05-31 09:37:36 - Translate -

The Real Life Tech Execs That Inspired Jesse Armstrong’s Mountainhead

Jesse Armstrong loves to pull fictional stories out of reality. His universally acclaimed TV show Succession, for instance, was inspired by real-life media dynasties like the Murdochs and the Hearsts. Similarly, his newest film Mountainhead centers upon characters that share key traits with the tech world’s most powerful leaders: Elon Musk, Mark Zuckerberg, Sam Altman, and others.Mountainhead, which releases on HBO on May 31 at 8 p.m. ET, portrays four top tech executives who retreat to a Utah hideaway as the AI deepfake tools newly released by one of their companies wreak havoc across the world. As the believable deepfakes inflame hatred on social media and real-world violence, the comfortably-appointed quartet mulls a global governmental takeover, intergalactic conquest and immortality, before interpersonal conflict derails their plans.Armstrong tells TIME in a Zoom interview that he first became interested in writing a story about tech titans after reading books like Michael Lewis’ Going Infiniteand Ashlee Vance’s Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future, as well as journalistic profiles of Peter Thiel, Marc Andreessen, and others. He then built the story around the interplay between four character archetypes—the father, the dynamo, the usurper, and the hanger-on—and conducted extensive research so that his fictional executives reflected real ones. His characters, he says, aren’t one-to-one matches, but “Frankenstein monsters with limbs sewn together.” These characters are deeply flawed and destructive, to say the least. Armstrong says he did not intend for the film to be a wholly negative depiction of tech leaders and AI development. “I do try to take myself out of it, but obviously my sense of what this tech does and could do infuses the piece. Maybe I do have some anxieties,” he says. Armstrong contends that the film is more so channeling fears that AI leaders themselves have warned about. “If somebody who knows the technology better than anyone in the world thinks there's a 1/5th chance that it's going to wipe out humanity—and they're some of the optimists—I think that's legitimately quite unnerving,” he says. Here’s how each of the characters in Mountainhead resembles real-world tech leaders. This article contains spoilers. Venisis the dynamo.Cory Michael Smith in Mountainhead Macall Polay—HBOVenis is Armstrong’s “dynamo”: the richest man in the world, who has gained his wealth from his social media platform Traam and its 4 billion users. Venis is ambitious, juvenile, and self-centered, even questioning whether other people are as real as him and his friends. Venis’ first obvious comp is Elon Musk, the richest man in the real world. Like Musk, Venis is obsessed with going to outer space and with using his enormous war chest to build hyperscale data centers to create powerful anti-woke AI systems. Venis also has a strange relationship with his child, essentially using it as a prop to help him through his own emotional turmoil. Throughout the movie, others caution Venis to shut down his deepfake AI tools which have led to military conflict and the desecration of holy sites across the world. Venis rebuffs them and says that people just need to adapt to technological changes and focus on the cool art being made. This argument is similar to those made by Sam Altman, who has argued that OpenAI needs to unveil ChatGPT and other cutting-edge tools as fast as possible in order to show the public the power of the technology. Like Mark Zuckerberg, Venis presides over a massively popular social media platform that some have accused of ignoring harms in favor of growth. Just as Amnesty International accused Meta of having “substantially contributed” to human rights violations perpetrated against Myanmar’s Rohingya ethnic group, Venis complains of the UN being “up his ass for starting a race war.”Randallis the father.Steve Carell in Mountainhead Macall Polay—HBOThe group’s eldest member is Randall, an investor and technologist who resembles Marc Andreessen and Peter Thiel in his lofty philosophizing and quest for immortality. Like Andreessen, Randall is a staunch accelerationist who believes that U.S. companies need to develop AI as fast as possible in order to both prevent the Chinese from controlling the technology, and to ostensibly ignite a new American utopia in which productivity, happiness, and health flourish. Randall’s power comes from the fact that he was Venis’ first investor, just as Thiel was an early investor in Facebook. While Andreessen pens manifestos about technological advancement, Randall paints his mission in grandiose, historical terms, using anti-democratic, sci-fi-inflected language that resembles that of the philosopher Curtis Yarvin, who has been funded and promoted by Thiel over his career. Randall’s justification of murder through utilitarian and Kantian lenses calls to mind Sam Bankman-Fried’s extensive philosophizing, which included a declaration that he would roll the dice on killing everyone on earth if there was a 51% chance he would create a second earth. Bankman-Fried’s approach—in embracing risk and harm in order to reap massive rewards—led him to be convicted of massive financial fraud. Randall is also obsessed with longevity just like Thiel, who has railed for years against the “inevitability of death” and yearns for “super-duper medical treatments” that would render him immortal. Jeffis the usurper.Ramy Youssef in Mountainhead Macall Polay—HBOJeff is a technologist who often serves as the movie’s conscience, slinging criticisms about the other characters. But he’s also deeply embedded within their world, and he needs their resources, particularly Venis’ access to computing power, to thrive. In the end, Jeff sells out his values for his own survival and well-being. AI skeptics have lobbed similar criticisms at the leaders of the main AI labs, including Altman—who started OpenAI as a nonprofit before attempting to restructure the company—as well as Demis Hassabis and Dario Amodei. Hassabis is the CEO of Google Deepmind and a winner of the 2024 Nobel Prize in Chemistry; a rare scientist surrounded by businessmen and technologists. In order to try to achieve his AI dreams of curing disease and halting global warning, Hassabis enlisted with Google, inking a contract in 2014 in which he prohibited Google from using his technology for military applications. But that clause has since disappeared, and the AI systems developed under Hassabis are being sold, via Google, to militaries like Israel’s. Another parallel can be drawn between Jeff and Amodei, an AI researcher who defected from OpenAI after becoming worried that the company was cutting back its safety measures, and then formed his own company, Anthropic. Amodei has urged governments to create AI guardrails and has warned about the potentially catastrophic effects of the AI industry’s race dynamics. But some have criticized Anthropic for operating similarly to OpenAI, prioritizing scale in a way that exacerbates competitive pressures. Souperis the hanger-on. Jason Schwartzman in Mountainhead Macall Polay—HBOEvery quartet needs its Turtle or its Ringo; a clear fourth wheel to serve as a punching bag for the rest of the group’s alpha males. Mountainhead’s hanger-on is Souper, thus named because he has soup kitchen money compared to the rest. In order to prove his worth, he’s fixated on getting funding for a meditation startup that he hopes will eventually become an “everything app.” No tech exec would want to be compared to Souper, who has a clear inferiority complex. But plenty of tech leaders have emphasized the importance of meditation and mindfulness—including Twitter co-founder and Square CEO Jack Dorsey, who often goes on meditation retreats. Armstrong, in his interview, declined to answer specific questions about his characters’ inspirations, but conceded that some of the speculations were in the right ballpark. “For people who know the area well, it's a little bit of a fun house mirror in that you see something and are convinced that it's them,” he says. “I think all of those people featured in my research. There's bits of Andreessen and David Sacks and some of those philosopher types. It’s a good parlor game to choose your Frankenstein limbs.”
#real #life #tech #execs #that

The Real Life Tech Execs That Inspired Jesse Armstrong’s Mountainhead

TIME.COM

The Real Life Tech Execs That Inspired Jesse Armstrong’s Mountainhead

Jesse Armstrong loves to pull fictional stories out of reality. His universally acclaimed TV show Succession, for instance, was inspired by real-life media dynasties like the Murdochs and the Hearsts. Similarly, his newest film Mountainhead centers upon characters that share key traits with the tech world’s most powerful leaders: Elon Musk, Mark Zuckerberg, Sam Altman, and others.Mountainhead, which releases on HBO on May 31 at 8 p.m. ET, portrays four top tech executives who retreat to a Utah hideaway as the AI deepfake tools newly released by one of their companies wreak havoc across the world. As the believable deepfakes inflame hatred on social media and real-world violence, the comfortably-appointed quartet mulls a global governmental takeover, intergalactic conquest and immortality, before interpersonal conflict derails their plans.Armstrong tells TIME in a Zoom interview that he first became interested in writing a story about tech titans after reading books like Michael Lewis’ Going Infinite (about Sam Bankman-Fried) and Ashlee Vance’s Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future, as well as journalistic profiles of Peter Thiel, Marc Andreessen, and others. He then built the story around the interplay between four character archetypes—the father, the dynamo, the usurper, and the hanger-on—and conducted extensive research so that his fictional executives reflected real ones. His characters, he says, aren’t one-to-one matches, but “Frankenstein monsters with limbs sewn together.” These characters are deeply flawed and destructive, to say the least. Armstrong says he did not intend for the film to be a wholly negative depiction of tech leaders and AI development. “I do try to take myself out of it, but obviously my sense of what this tech does and could do infuses the piece. Maybe I do have some anxieties,” he says. Armstrong contends that the film is more so channeling fears that AI leaders themselves have warned about. “If somebody who knows the technology better than anyone in the world thinks there's a 1/5th chance that it's going to wipe out humanity—and they're some of the optimists—I think that's legitimately quite unnerving,” he says. Here’s how each of the characters in Mountainhead resembles real-world tech leaders. This article contains spoilers. Venis (Cory Michael Smith) is the dynamo.Cory Michael Smith in Mountainhead Macall Polay—HBOVenis is Armstrong’s “dynamo”: the richest man in the world, who has gained his wealth from his social media platform Traam and its 4 billion users. Venis is ambitious, juvenile, and self-centered, even questioning whether other people are as real as him and his friends. Venis’ first obvious comp is Elon Musk, the richest man in the real world. Like Musk, Venis is obsessed with going to outer space and with using his enormous war chest to build hyperscale data centers to create powerful anti-woke AI systems. Venis also has a strange relationship with his child, essentially using it as a prop to help him through his own emotional turmoil. Throughout the movie, others caution Venis to shut down his deepfake AI tools which have led to military conflict and the desecration of holy sites across the world. Venis rebuffs them and says that people just need to adapt to technological changes and focus on the cool art being made. This argument is similar to those made by Sam Altman, who has argued that OpenAI needs to unveil ChatGPT and other cutting-edge tools as fast as possible in order to show the public the power of the technology. Like Mark Zuckerberg, Venis presides over a massively popular social media platform that some have accused of ignoring harms in favor of growth. Just as Amnesty International accused Meta of having “substantially contributed” to human rights violations perpetrated against Myanmar’s Rohingya ethnic group, Venis complains of the UN being “up his ass for starting a race war.”Randall (Steve Carell) is the father.Steve Carell in Mountainhead Macall Polay—HBOThe group’s eldest member is Randall, an investor and technologist who resembles Marc Andreessen and Peter Thiel in his lofty philosophizing and quest for immortality. Like Andreessen, Randall is a staunch accelerationist who believes that U.S. companies need to develop AI as fast as possible in order to both prevent the Chinese from controlling the technology, and to ostensibly ignite a new American utopia in which productivity, happiness, and health flourish. Randall’s power comes from the fact that he was Venis’ first investor, just as Thiel was an early investor in Facebook. While Andreessen pens manifestos about technological advancement, Randall paints his mission in grandiose, historical terms, using anti-democratic, sci-fi-inflected language that resembles that of the philosopher Curtis Yarvin, who has been funded and promoted by Thiel over his career. Randall’s justification of murder through utilitarian and Kantian lenses calls to mind Sam Bankman-Fried’s extensive philosophizing, which included a declaration that he would roll the dice on killing everyone on earth if there was a 51% chance he would create a second earth. Bankman-Fried’s approach—in embracing risk and harm in order to reap massive rewards—led him to be convicted of massive financial fraud. Randall is also obsessed with longevity just like Thiel, who has railed for years against the “inevitability of death” and yearns for “super-duper medical treatments” that would render him immortal. Jeff (Ramy Youssef) is the usurper.Ramy Youssef in Mountainhead Macall Polay—HBOJeff is a technologist who often serves as the movie’s conscience, slinging criticisms about the other characters. But he’s also deeply embedded within their world, and he needs their resources, particularly Venis’ access to computing power, to thrive. In the end, Jeff sells out his values for his own survival and well-being. AI skeptics have lobbed similar criticisms at the leaders of the main AI labs, including Altman—who started OpenAI as a nonprofit before attempting to restructure the company—as well as Demis Hassabis and Dario Amodei. Hassabis is the CEO of Google Deepmind and a winner of the 2024 Nobel Prize in Chemistry; a rare scientist surrounded by businessmen and technologists. In order to try to achieve his AI dreams of curing disease and halting global warning, Hassabis enlisted with Google, inking a contract in 2014 in which he prohibited Google from using his technology for military applications. But that clause has since disappeared, and the AI systems developed under Hassabis are being sold, via Google, to militaries like Israel’s. Another parallel can be drawn between Jeff and Amodei, an AI researcher who defected from OpenAI after becoming worried that the company was cutting back its safety measures, and then formed his own company, Anthropic. Amodei has urged governments to create AI guardrails and has warned about the potentially catastrophic effects of the AI industry’s race dynamics. But some have criticized Anthropic for operating similarly to OpenAI, prioritizing scale in a way that exacerbates competitive pressures. Souper (Jason Schwartzman) is the hanger-on. Jason Schwartzman in Mountainhead Macall Polay—HBOEvery quartet needs its Turtle or its Ringo; a clear fourth wheel to serve as a punching bag for the rest of the group’s alpha males. Mountainhead’s hanger-on is Souper, thus named because he has soup kitchen money compared to the rest (hundreds of millions as opposed to billions of dollars). In order to prove his worth, he’s fixated on getting funding for a meditation startup that he hopes will eventually become an “everything app.” No tech exec would want to be compared to Souper, who has a clear inferiority complex. But plenty of tech leaders have emphasized the importance of meditation and mindfulness—including Twitter co-founder and Square CEO Jack Dorsey, who often goes on meditation retreats. Armstrong, in his interview, declined to answer specific questions about his characters’ inspirations, but conceded that some of the speculations were in the right ballpark. “For people who know the area well, it's a little bit of a fun house mirror in that you see something and are convinced that it's them,” he says. “I think all of those people featured in my research. There's bits of Andreessen and David Sacks and some of those philosopher types. It’s a good parlor game to choose your Frankenstein limbs.”

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2025-05-13 13:47:29 - Translate -

#333;">Why one obscure app could help crumble Meta’s empire

If the question, “Who is Meta’s biggest rival?” were on a Family Feud survey, TikTok would likely be the winning answer.
In the Federal Trade Commission’s antitrust case against the Facebook and Instagram owner, the government’s response probably wouldn’t even make the top 10: a small blockchain-based platform called MeWe.
MeWe looks a fair amount like Facebook at first glance, except that you make an account using the Frequency blockchain — which the company explains is a decentralized protocol that lets you move your social connections to other (mostly hypothetical at this point) apps that support Frequency.
The company says 20 million users have joined, but when I make a MeWe account and log in, I scroll through my autopopulated feed and think, “Who are these people?” I search for a few of my Verge colleagues, figuring if anyone has tried this obscure app, it might be one of them, but I come up short.
I try some public figures: Tim Cook? Jeff Bezos? Mark Zuckerberg? There are some accounts with these names, but it seems unlikely they’re the ones I have in mind.The claim that MeWe is a closer competitor to Facebook and Instagram than TikTok might be baffling if you’re not steeped in antitrust law or the specifics of the FTC’s complaint.
Meta CEO Zuckerberg testified he hadn’t even heard of the app before this case was filed.
But the FTC has spent the past three weeks laying out its logic.
Using Meta’s own internal discussions about how it views itself and its competition, it says that Meta has historically, and to this day, competed in a market for connecting with friends and family online — and when it saw its dominance in that space threatened by the rise of Instagram and WhatsApp, it bought them to squash the competition.Whether Judge James Boasberg buys this could determine who wins the case — if the FTC can also show that Meta acted illegally through its acquisitions of Instagram and WhatsApp to solidify its alleged monopoly power.Antitrust law is supposed to ensure fair competition, which usually means that people have options for a useful class of goods and services — what’s known as a relevant market.
The FTC says that here, that market is “personal social networking services,” or PSNs: spaces where a core purpose is helping people connect with friends and family.
While there are many online platforms that overlap with Meta’s services, the FTC argues that virtually none of them serve that market.
If internet users want to find and hang out with people they know — as opposed to, say, watching influencers or making work connections — then it’s Mark Zuckerberg’s way or… in the government’s telling, Snapchat, BeReal, and MeWe.
Beyond that core definition, PSNs have some other unique features and norms: The apps feature a social graph of users’ friends and family connections, as opposed to mapping users primarily based on their interests.
Users can look up and find people they know in real life.
And they come to the app to share personal updates with those people.Facebook and Instagram increasingly display videos and photos from influencers and celebrities, but the FTC argues personal social networking remains a core service.
It used Instagram chief Adam Mosseri’s testimony to most clearly make this point.
In that testimony as well as posts to his own Instagram account, Mosseri said that it’s still important for the app to connect users with their friends.
The FTC argues that even if that use case is a smaller portion of what Meta’s apps do these days, it’s still a significant need users have that can virtually only be fulfilled by Facebook and Instagram.
While someone might connect with people they know in real life on LinkedIn, they likely won’t primarily share personal updates there.
And while they also could follow and interact with people they know on TikTok or YouTube, they’re more likely to passively watch videos from people they don’t.Meta says this is an entirely wrong way to think about it.
Social media platforms compete for users’ time and attention, so whether a particular app is squarely aimed at so-called friends and family sharing is beside the point.
Facebook and Instagram have evolved to show more content from people like influencers, shifting further from the use case the FTC says Meta has illegally dominated.
The company has already landed some important points that could help its case, and it will get more time to push back on the agency’s framing when it calls its own witnesses in the coming weeks.But as the FTC’s case-in-chief continues into its fifth week, its argument for Meta’s dominance is becoming a lot clearer.Why do people use Facebook?When defining a market, each side is trying to answer a key question: why are people choosing one particular company’s product? A lot of goods and services compete with each other in some sense, but this doesn’t mean they serve the same niche.
In the case of sodas, for example, “you could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi,” says George Washington Law professor and former FTC Chair Bill Kovacic.
In the tech world, Netflix has claimed its biggest competitors are Fortnite and sleep — but those comparisons probably wouldn’t stand up in court.The FTC says that outside of Facebook and Instagram, only apps like Snapchat and MeWe can fulfill a users’ desire to broadcast personal updates with friends and family online.
To make its case, it brought in a string of executives from other social media companies to explain why their apps can’t quite scratch the same itch for users.
Strava’s former VP of connected partnerships Mateo Ortega testified that sure, users of the fitness-tracking social media app could share baby photos on the platform, but they probably wouldn’t unless it was in a running stroller.
“It’s all about fitness, and while you can post other stuff, it just doesn’t seem as relevant,” he said.
“You could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi”Pinterest’s former head of user growth Julia Roberts testified that users who come to Pinterest “expecting it to be like other social media apps … tend to be confused about how to use the product.” That’s because the app is so much not about connecting with other people that it works much differently from other social media platforms.
Pinterest is more about finding things users are interested in, she said, so “following is not a big part of the Pinterest experience.”TikTok has a tab where users can watch videos from their friends — identified as people who mutually follow each other.
But head of operations Adam Presser testified only about 1 percent of videos watched on the platform are there.
The company doesn’t think of itself as competing with Meta’s apps for personal social networking, he testified.
And even though side-by-side screenshots of TikTok, Instagram Reels, and YouTube Shorts look identical, Presser said, “when you click out of this view for these other platforms, you would get to essentially what I think of as their core business,” which for Instagram, includes a feed and stories that often contain at least some content from family and friends.At times, Meta’s cross-examination of rival company executives showed the limits of apps’ similarities.
When questioning Apple director of product marketing Ronak Shah, Meta sought to show that group chats in Apple’s messaging feature could serve as a social media feed for friends and family sharing.
But Shah testified that feed would be limited to 32 people at most, and users can’t just look up each others’ profiles like they would on social platforms.
Still, Meta pointed out, Apple’s messages app is listed under social media on its own app store.However, Meta also made important arguments about why the judge should question the FTC’s framing.
It pointed out that some documents from TikTok and YouTube owner Google claiming their products are very different from Meta’s were submitted to foreign officials to try to avoid getting drafted into potentially frustrating regulations.
It also pointed out when TikTok briefly went dark in the US ahead of a (now-aborted) ban, users flocked to Meta apps, showing consumers see it as a substitute on at least some level.
That’s because, Meta argued, competition for users is really about winning their time and attention.Companies can “sometimes make mistakes.
They misjudge who their users are”But X VP of product Keith Coleman testified it’s not that useful to think about competition this way.
Instead, “it’s much more helpful to understand what people are trying to accomplish in their lives and to try to help them accomplish that.” Under former CEO Jack Dorsey, then-Twitter leaned into focusing on news and users’ interests, Coleman testified, because that’s why people were coming to the platform.
Coleman was later surprised at how his own website characterized the product in its help center as a “service for friends, family, and coworkers to communicate and stay connected through the exchange of quick, frequent messages.” “I can’t believe that’s on the website,” he said.
“That’s pretty wacky.”This point was “a caution that not everything a company writes down or says is necessarily decisive in establishing what the boundary of a market is,” Kovacic said.
Companies can “sometimes make mistakes.
They misjudge who their users are.”There are real ramifications for internet users here.
Going back to Netflix’s comparisons, if the streaming video service went down, some people would probably be happy to play a video game or get a few hours of shut-eye instead.
But others would be frustrated that they couldn’t watch a movie, which is why it’s good that Hulu, HBO, and Amazon Prime Video also exist.
The FTC’s argument isn’t that Meta owns the only social apps on the internet, it’s that the company faces little competition for a service many people specifically want — so the fact that you probably don’t know anyone using MeWe is sort of the point.How will the judge decide?Ultimately, Boasberg’s market definition — whether it’s Meta’s, the FTC’s, or his own — will come down to a few things: how Meta views itself, how competitors see it, and his own intuition, says Kovacic.
”Notice how much the FTC has been questioning Meta witnesses on the basis of its own internal documents,” he says.
“Does the story in the courtroom match the story of your own internal documents?” So far, the documents have shown that Meta has clocked that at least some portion of users come to its products to connect with family and friends, but also that the rise of TikTok has had it looking over its shoulder.
In September 2020, Meta told its board that Instagram revenue would be “meaningfully lower” than planned in the second half of the fiscal year because TikTok was drawing users’ attention.
But other internal documents have shown Meta’s well aware that at different points in time, users have come to its apps to connect with family and friends, and worriedly took note of other apps entering that space.
In a 2018 presentation, Meta found that the highest percentage of surveyed users said they come to Facebook, Instagram, and Snap to “see daily casual moments” and “see special moments.” By contrast, users came to Twitter’s feed for news and YouTube’s for entertainment.
And even as Instagram expands into entertainment, the FTC notes that it still advertises its sign-up page as a place to “see photos and videos from your friends.”“Instagram will always need to focus on friends”In a 2018 email, Zuckerberg told Mosseri that “Instagram will always need to focus on friends.” And even though a lot has changed in the social media landscape since then, Mosseri testified that to this day on the app, “friends are an important part of the experience.” Even though users may share fewer of their own updates on Facebook and Instagram, Mosseri admitted that two friends talking in the comments of a public figure’s post counts as an interaction between friends — and one that Instagram actively tries to facilitate.Meta has argued that this special focus on friends and family sharing makes up a shrinking portion of its offerings as it works to compete with fierce rivals like TikTok.
But the FTC says it’s still significant enough to monopolize.
It’s a scenario that came up in another major tech monopolization case, Kovacic says: the late-1990s lawsuit US v.
Microsoft.
In that case, Microsoft argued the Justice Department was ignoring how computing would soon move beyond the personal computer to the Internet of Things, meaning it couldn’t truly lock up the computing ecosystem as much as the government alleged.“Judge Jackson in the Microsoft case said, yeah, those things are happening, but not happening fast enough to deny you real market power in this PC and laptop-based market that the Justice Department is emphasizing,” Kovacic says.Still, he adds, a market niche can at some point become so small that it’s no longer significant in the eyes of antitrust law.
“You can have a process of change that ultimately renders the market segment unimportant,” he says.
“And the hard task of analysis for the judge is to say, has it already happened?”See More:

#666;">المصدر: https://www.theverge.com/antitrust/665308/meta-ftc-antitrust-trial-market-definition-tiktok-mewe-snap" style="color: #0066cc; text-decoration: none;">www.theverge.com

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Why one obscure app could help crumble Meta’s empire

If the question, “Who is Meta’s biggest rival?” were on a Family Feud survey, TikTok would likely be the winning answer. In the Federal Trade Commission’s antitrust case against the Facebook and Instagram owner, the government’s response probably wouldn’t even make the top 10: a small blockchain-based platform called MeWe. MeWe looks a fair amount like Facebook at first glance, except that you make an account using the Frequency blockchain — which the company explains is a decentralized protocol that lets you move your social connections to other (mostly hypothetical at this point) apps that support Frequency. The company says 20 million users have joined, but when I make a MeWe account and log in, I scroll through my autopopulated feed and think, “Who are these people?” I search for a few of my Verge colleagues, figuring if anyone has tried this obscure app, it might be one of them, but I come up short. I try some public figures: Tim Cook? Jeff Bezos? Mark Zuckerberg? There are some accounts with these names, but it seems unlikely they’re the ones I have in mind.The claim that MeWe is a closer competitor to Facebook and Instagram than TikTok might be baffling if you’re not steeped in antitrust law or the specifics of the FTC’s complaint. Meta CEO Zuckerberg testified he hadn’t even heard of the app before this case was filed. But the FTC has spent the past three weeks laying out its logic. Using Meta’s own internal discussions about how it views itself and its competition, it says that Meta has historically, and to this day, competed in a market for connecting with friends and family online — and when it saw its dominance in that space threatened by the rise of Instagram and WhatsApp, it bought them to squash the competition.Whether Judge James Boasberg buys this could determine who wins the case — if the FTC can also show that Meta acted illegally through its acquisitions of Instagram and WhatsApp to solidify its alleged monopoly power.Antitrust law is supposed to ensure fair competition, which usually means that people have options for a useful class of goods and services — what’s known as a relevant market. The FTC says that here, that market is “personal social networking services,” or PSNs: spaces where a core purpose is helping people connect with friends and family. While there are many online platforms that overlap with Meta’s services, the FTC argues that virtually none of them serve that market. If internet users want to find and hang out with people they know — as opposed to, say, watching influencers or making work connections — then it’s Mark Zuckerberg’s way or… in the government’s telling, Snapchat, BeReal, and MeWe. Beyond that core definition, PSNs have some other unique features and norms: The apps feature a social graph of users’ friends and family connections, as opposed to mapping users primarily based on their interests. Users can look up and find people they know in real life. And they come to the app to share personal updates with those people.Facebook and Instagram increasingly display videos and photos from influencers and celebrities, but the FTC argues personal social networking remains a core service. It used Instagram chief Adam Mosseri’s testimony to most clearly make this point. In that testimony as well as posts to his own Instagram account, Mosseri said that it’s still important for the app to connect users with their friends. The FTC argues that even if that use case is a smaller portion of what Meta’s apps do these days, it’s still a significant need users have that can virtually only be fulfilled by Facebook and Instagram. While someone might connect with people they know in real life on LinkedIn, they likely won’t primarily share personal updates there. And while they also could follow and interact with people they know on TikTok or YouTube, they’re more likely to passively watch videos from people they don’t.Meta says this is an entirely wrong way to think about it. Social media platforms compete for users’ time and attention, so whether a particular app is squarely aimed at so-called friends and family sharing is beside the point. Facebook and Instagram have evolved to show more content from people like influencers, shifting further from the use case the FTC says Meta has illegally dominated. The company has already landed some important points that could help its case, and it will get more time to push back on the agency’s framing when it calls its own witnesses in the coming weeks.But as the FTC’s case-in-chief continues into its fifth week, its argument for Meta’s dominance is becoming a lot clearer.Why do people use Facebook?When defining a market, each side is trying to answer a key question: why are people choosing one particular company’s product? A lot of goods and services compete with each other in some sense, but this doesn’t mean they serve the same niche. In the case of sodas, for example, “you could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi,” says George Washington Law professor and former FTC Chair Bill Kovacic. In the tech world, Netflix has claimed its biggest competitors are Fortnite and sleep — but those comparisons probably wouldn’t stand up in court.The FTC says that outside of Facebook and Instagram, only apps like Snapchat and MeWe can fulfill a users’ desire to broadcast personal updates with friends and family online. To make its case, it brought in a string of executives from other social media companies to explain why their apps can’t quite scratch the same itch for users. Strava’s former VP of connected partnerships Mateo Ortega testified that sure, users of the fitness-tracking social media app could share baby photos on the platform, but they probably wouldn’t unless it was in a running stroller. “It’s all about fitness, and while you can post other stuff, it just doesn’t seem as relevant,” he said. “You could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi”Pinterest’s former head of user growth Julia Roberts testified that users who come to Pinterest “expecting it to be like other social media apps … tend to be confused about how to use the product.” That’s because the app is so much not about connecting with other people that it works much differently from other social media platforms. Pinterest is more about finding things users are interested in, she said, so “following is not a big part of the Pinterest experience.”TikTok has a tab where users can watch videos from their friends — identified as people who mutually follow each other. But head of operations Adam Presser testified only about 1 percent of videos watched on the platform are there. The company doesn’t think of itself as competing with Meta’s apps for personal social networking, he testified. And even though side-by-side screenshots of TikTok, Instagram Reels, and YouTube Shorts look identical, Presser said, “when you click out of this view for these other platforms, you would get to essentially what I think of as their core business,” which for Instagram, includes a feed and stories that often contain at least some content from family and friends.At times, Meta’s cross-examination of rival company executives showed the limits of apps’ similarities. When questioning Apple director of product marketing Ronak Shah, Meta sought to show that group chats in Apple’s messaging feature could serve as a social media feed for friends and family sharing. But Shah testified that feed would be limited to 32 people at most, and users can’t just look up each others’ profiles like they would on social platforms. Still, Meta pointed out, Apple’s messages app is listed under social media on its own app store.However, Meta also made important arguments about why the judge should question the FTC’s framing. It pointed out that some documents from TikTok and YouTube owner Google claiming their products are very different from Meta’s were submitted to foreign officials to try to avoid getting drafted into potentially frustrating regulations. It also pointed out when TikTok briefly went dark in the US ahead of a (now-aborted) ban, users flocked to Meta apps, showing consumers see it as a substitute on at least some level. That’s because, Meta argued, competition for users is really about winning their time and attention.Companies can “sometimes make mistakes. They misjudge who their users are”But X VP of product Keith Coleman testified it’s not that useful to think about competition this way. Instead, “it’s much more helpful to understand what people are trying to accomplish in their lives and to try to help them accomplish that.” Under former CEO Jack Dorsey, then-Twitter leaned into focusing on news and users’ interests, Coleman testified, because that’s why people were coming to the platform. Coleman was later surprised at how his own website characterized the product in its help center as a “service for friends, family, and coworkers to communicate and stay connected through the exchange of quick, frequent messages.” “I can’t believe that’s on the website,” he said. “That’s pretty wacky.”This point was “a caution that not everything a company writes down or says is necessarily decisive in establishing what the boundary of a market is,” Kovacic said. Companies can “sometimes make mistakes. They misjudge who their users are.”There are real ramifications for internet users here. Going back to Netflix’s comparisons, if the streaming video service went down, some people would probably be happy to play a video game or get a few hours of shut-eye instead. But others would be frustrated that they couldn’t watch a movie, which is why it’s good that Hulu, HBO, and Amazon Prime Video also exist. The FTC’s argument isn’t that Meta owns the only social apps on the internet, it’s that the company faces little competition for a service many people specifically want — so the fact that you probably don’t know anyone using MeWe is sort of the point.How will the judge decide?Ultimately, Boasberg’s market definition — whether it’s Meta’s, the FTC’s, or his own — will come down to a few things: how Meta views itself, how competitors see it, and his own intuition, says Kovacic. ”Notice how much the FTC has been questioning Meta witnesses on the basis of its own internal documents,” he says. “Does the story in the courtroom match the story of your own internal documents?” So far, the documents have shown that Meta has clocked that at least some portion of users come to its products to connect with family and friends, but also that the rise of TikTok has had it looking over its shoulder. In September 2020, Meta told its board that Instagram revenue would be “meaningfully lower” than planned in the second half of the fiscal year because TikTok was drawing users’ attention. But other internal documents have shown Meta’s well aware that at different points in time, users have come to its apps to connect with family and friends, and worriedly took note of other apps entering that space. In a 2018 presentation, Meta found that the highest percentage of surveyed users said they come to Facebook, Instagram, and Snap to “see daily casual moments” and “see special moments.” By contrast, users came to Twitter’s feed for news and YouTube’s for entertainment. And even as Instagram expands into entertainment, the FTC notes that it still advertises its sign-up page as a place to “see photos and videos from your friends.”“Instagram will always need to focus on friends”In a 2018 email, Zuckerberg told Mosseri that “Instagram will always need to focus on friends.” And even though a lot has changed in the social media landscape since then, Mosseri testified that to this day on the app, “friends are an important part of the experience.” Even though users may share fewer of their own updates on Facebook and Instagram, Mosseri admitted that two friends talking in the comments of a public figure’s post counts as an interaction between friends — and one that Instagram actively tries to facilitate.Meta has argued that this special focus on friends and family sharing makes up a shrinking portion of its offerings as it works to compete with fierce rivals like TikTok. But the FTC says it’s still significant enough to monopolize. It’s a scenario that came up in another major tech monopolization case, Kovacic says: the late-1990s lawsuit US v. Microsoft. In that case, Microsoft argued the Justice Department was ignoring how computing would soon move beyond the personal computer to the Internet of Things, meaning it couldn’t truly lock up the computing ecosystem as much as the government alleged.“Judge Jackson in the Microsoft case said, yeah, those things are happening, but not happening fast enough to deny you real market power in this PC and laptop-based market that the Justice Department is emphasizing,” Kovacic says.Still, he adds, a market niche can at some point become so small that it’s no longer significant in the eyes of antitrust law. “You can have a process of change that ultimately renders the market segment unimportant,” he says. “And the hard task of analysis for the judge is to say, has it already happened?”See More:

المصدر: www.theverge.com

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WWW.THEVERGE.COM

Why one obscure app could help crumble Meta’s empire

If the question, “Who is Meta’s biggest rival?” were on a Family Feud survey, TikTok would likely be the winning answer. In the Federal Trade Commission’s antitrust case against the Facebook and Instagram owner, the government’s response probably wouldn’t even make the top 10: a small blockchain-based platform called MeWe. MeWe looks a fair amount like Facebook at first glance, except that you make an account using the Frequency blockchain — which the company explains is a decentralized protocol that lets you move your social connections to other (mostly hypothetical at this point) apps that support Frequency. The company says 20 million users have joined, but when I make a MeWe account and log in, I scroll through my autopopulated feed and think, “Who are these people?” I search for a few of my Verge colleagues, figuring if anyone has tried this obscure app, it might be one of them, but I come up short. I try some public figures: Tim Cook? Jeff Bezos? Mark Zuckerberg? There are some accounts with these names, but it seems unlikely they’re the ones I have in mind.The claim that MeWe is a closer competitor to Facebook and Instagram than TikTok might be baffling if you’re not steeped in antitrust law or the specifics of the FTC’s complaint. Meta CEO Zuckerberg testified he hadn’t even heard of the app before this case was filed. But the FTC has spent the past three weeks laying out its logic. Using Meta’s own internal discussions about how it views itself and its competition, it says that Meta has historically, and to this day, competed in a market for connecting with friends and family online — and when it saw its dominance in that space threatened by the rise of Instagram and WhatsApp, it bought them to squash the competition.Whether Judge James Boasberg buys this could determine who wins the case — if the FTC can also show that Meta acted illegally through its acquisitions of Instagram and WhatsApp to solidify its alleged monopoly power.Antitrust law is supposed to ensure fair competition, which usually means that people have options for a useful class of goods and services — what’s known as a relevant market. The FTC says that here, that market is “personal social networking services,” or PSNs: spaces where a core purpose is helping people connect with friends and family. While there are many online platforms that overlap with Meta’s services, the FTC argues that virtually none of them serve that market. If internet users want to find and hang out with people they know — as opposed to, say, watching influencers or making work connections — then it’s Mark Zuckerberg’s way or… in the government’s telling, Snapchat, BeReal, and MeWe. Beyond that core definition, PSNs have some other unique features and norms: The apps feature a social graph of users’ friends and family connections, as opposed to mapping users primarily based on their interests. Users can look up and find people they know in real life. And they come to the app to share personal updates with those people.Facebook and Instagram increasingly display videos and photos from influencers and celebrities, but the FTC argues personal social networking remains a core service. It used Instagram chief Adam Mosseri’s testimony to most clearly make this point. In that testimony as well as posts to his own Instagram account, Mosseri said that it’s still important for the app to connect users with their friends. The FTC argues that even if that use case is a smaller portion of what Meta’s apps do these days, it’s still a significant need users have that can virtually only be fulfilled by Facebook and Instagram. While someone might connect with people they know in real life on LinkedIn, they likely won’t primarily share personal updates there. And while they also could follow and interact with people they know on TikTok or YouTube, they’re more likely to passively watch videos from people they don’t.Meta says this is an entirely wrong way to think about it. Social media platforms compete for users’ time and attention, so whether a particular app is squarely aimed at so-called friends and family sharing is beside the point. Facebook and Instagram have evolved to show more content from people like influencers, shifting further from the use case the FTC says Meta has illegally dominated. The company has already landed some important points that could help its case, and it will get more time to push back on the agency’s framing when it calls its own witnesses in the coming weeks.But as the FTC’s case-in-chief continues into its fifth week, its argument for Meta’s dominance is becoming a lot clearer.Why do people use Facebook?When defining a market, each side is trying to answer a key question: why are people choosing one particular company’s product? A lot of goods and services compete with each other in some sense, but this doesn’t mean they serve the same niche. In the case of sodas, for example, “you could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi,” says George Washington Law professor and former FTC Chair Bill Kovacic. In the tech world, Netflix has claimed its biggest competitors are Fortnite and sleep — but those comparisons probably wouldn’t stand up in court.The FTC says that outside of Facebook and Instagram, only apps like Snapchat and MeWe can fulfill a users’ desire to broadcast personal updates with friends and family online. To make its case, it brought in a string of executives from other social media companies to explain why their apps can’t quite scratch the same itch for users. Strava’s former VP of connected partnerships Mateo Ortega testified that sure, users of the fitness-tracking social media app could share baby photos on the platform, but they probably wouldn’t unless it was in a running stroller. “It’s all about fitness, and while you can post other stuff, it just doesn’t seem as relevant,” he said. “You could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi”Pinterest’s former head of user growth Julia Roberts testified that users who come to Pinterest “expecting it to be like other social media apps … tend to be confused about how to use the product.” That’s because the app is so much not about connecting with other people that it works much differently from other social media platforms. Pinterest is more about finding things users are interested in, she said, so “following is not a big part of the Pinterest experience.”TikTok has a tab where users can watch videos from their friends — identified as people who mutually follow each other. But head of operations Adam Presser testified only about 1 percent of videos watched on the platform are there. The company doesn’t think of itself as competing with Meta’s apps for personal social networking, he testified. And even though side-by-side screenshots of TikTok, Instagram Reels, and YouTube Shorts look identical, Presser said, “when you click out of this view for these other platforms, you would get to essentially what I think of as their core business,” which for Instagram, includes a feed and stories that often contain at least some content from family and friends.At times, Meta’s cross-examination of rival company executives showed the limits of apps’ similarities. When questioning Apple director of product marketing Ronak Shah, Meta sought to show that group chats in Apple’s messaging feature could serve as a social media feed for friends and family sharing. But Shah testified that feed would be limited to 32 people at most, and users can’t just look up each others’ profiles like they would on social platforms. Still, Meta pointed out, Apple’s messages app is listed under social media on its own app store.However, Meta also made important arguments about why the judge should question the FTC’s framing. It pointed out that some documents from TikTok and YouTube owner Google claiming their products are very different from Meta’s were submitted to foreign officials to try to avoid getting drafted into potentially frustrating regulations. It also pointed out when TikTok briefly went dark in the US ahead of a (now-aborted) ban, users flocked to Meta apps, showing consumers see it as a substitute on at least some level. That’s because, Meta argued, competition for users is really about winning their time and attention.Companies can “sometimes make mistakes. They misjudge who their users are”But X VP of product Keith Coleman testified it’s not that useful to think about competition this way. Instead, “it’s much more helpful to understand what people are trying to accomplish in their lives and to try to help them accomplish that.” Under former CEO Jack Dorsey, then-Twitter leaned into focusing on news and users’ interests, Coleman testified, because that’s why people were coming to the platform. Coleman was later surprised at how his own website characterized the product in its help center as a “service for friends, family, and coworkers to communicate and stay connected through the exchange of quick, frequent messages.” “I can’t believe that’s on the website,” he said. “That’s pretty wacky.”This point was “a caution that not everything a company writes down or says is necessarily decisive in establishing what the boundary of a market is,” Kovacic said. Companies can “sometimes make mistakes. They misjudge who their users are.”There are real ramifications for internet users here. Going back to Netflix’s comparisons, if the streaming video service went down, some people would probably be happy to play a video game or get a few hours of shut-eye instead. But others would be frustrated that they couldn’t watch a movie, which is why it’s good that Hulu, HBO, and Amazon Prime Video also exist. The FTC’s argument isn’t that Meta owns the only social apps on the internet, it’s that the company faces little competition for a service many people specifically want — so the fact that you probably don’t know anyone using MeWe is sort of the point.How will the judge decide?Ultimately, Boasberg’s market definition — whether it’s Meta’s, the FTC’s, or his own — will come down to a few things: how Meta views itself, how competitors see it, and his own intuition, says Kovacic. ”Notice how much the FTC has been questioning Meta witnesses on the basis of its own internal documents,” he says. “Does the story in the courtroom match the story of your own internal documents?” So far, the documents have shown that Meta has clocked that at least some portion of users come to its products to connect with family and friends, but also that the rise of TikTok has had it looking over its shoulder. In September 2020, Meta told its board that Instagram revenue would be “meaningfully lower” than planned in the second half of the fiscal year because TikTok was drawing users’ attention. But other internal documents have shown Meta’s well aware that at different points in time, users have come to its apps to connect with family and friends, and worriedly took note of other apps entering that space. In a 2018 presentation, Meta found that the highest percentage of surveyed users said they come to Facebook, Instagram, and Snap to “see daily casual moments” and “see special moments.” By contrast, users came to Twitter’s feed for news and YouTube’s for entertainment. And even as Instagram expands into entertainment, the FTC notes that it still advertises its sign-up page as a place to “see photos and videos from your friends.”“Instagram will always need to focus on friends”In a 2018 email, Zuckerberg told Mosseri that “Instagram will always need to focus on friends.” And even though a lot has changed in the social media landscape since then, Mosseri testified that to this day on the app, “friends are an important part of the experience.” Even though users may share fewer of their own updates on Facebook and Instagram, Mosseri admitted that two friends talking in the comments of a public figure’s post counts as an interaction between friends — and one that Instagram actively tries to facilitate.Meta has argued that this special focus on friends and family sharing makes up a shrinking portion of its offerings as it works to compete with fierce rivals like TikTok. But the FTC says it’s still significant enough to monopolize. It’s a scenario that came up in another major tech monopolization case, Kovacic says: the late-1990s lawsuit US v. Microsoft. In that case, Microsoft argued the Justice Department was ignoring how computing would soon move beyond the personal computer to the Internet of Things, meaning it couldn’t truly lock up the computing ecosystem as much as the government alleged.“Judge Jackson in the Microsoft case said, yeah, those things are happening, but not happening fast enough to deny you real market power in this PC and laptop-based market that the Justice Department is emphasizing,” Kovacic says.Still, he adds, a market niche can at some point become so small that it’s no longer significant in the eyes of antitrust law. “You can have a process of change that ultimately renders the market segment unimportant,” he says. “And the hard task of analysis for the judge is to say, has it already happened?”See More:

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