Facebook Tracks Users Who are Logged Off

Facebook is facing new regulatory scrutiny after revelations that the application is tracking users even after they have logged out of the application.

In a letter to the Federal Trade Commission, Reps. Edward J. Markey (D-Mass.) and Joe Barton (R-Tex.) wrote that Facebook’s use of “cookie” software should be investigated under the “unfair and deceptive acts” clause of the agency’s mandate.
Privacy issues

Facebook says it has fixed the problem, which had been that every time a user visits a site that features a Facebook "Like" button, a record is sent back to Facebook, even after you log off your account.

The new application programming interface allows applications to post status items to a Facebook timeline without a users intervention. It is an extension of "Facebook Instant" and the privacy concern here is that because you no longer have to explicitly opt-in to share an item, you may accidentally share a page or an event that you did not intend others to see. Logging out of Facebook is not enough.

The advice to "log out of Facebook," in and of itself, does not fix the problem. Logging out of Facebook only de-authorizes your browser from the web application. A number of cookies (including your account number) are still sent along to all requests to Facebook.com.

Even if you are logged out, Facebook still knows and can track every page you visit. The only solution is to delete every Facebook cookie in your browser, or to use a separate browser for Facebook interactions, some would argue.

Facebook said the issue has been fixed.

But some now raise further issues about Facebook’s new “friction-less sharing” features, which allow applications to post user activity in real time, without requiring permission from account holders for each update. The apps require users to grant permission once to generate updates, and users have the ability to change these settings at any time. But many users will not.

Twitter Ad Revenues to Near $400 Million by 2013

Twitter will earn $139.5 million in global ad revenues this year, up 210 percent from $45 million in 2010, according to a new forecast from eMarketer. By 2013, eMarketer estimates worldwide ad revenues at Twitter will reach nearly $400 million.

That will matter for most end users who like Twitter but don't want to pay a subscription fee. Advertising likely remains the most logical revenue model for many mass market applications and services, though the "freemium" model that builds on subscription revenue or commerce revenue seems to run a close second in start-up thinking.

“Since their debut in April 2010, Twitter’s 'Promoted' products have proven successful in the US,” said eMarketer principal analyst Debra Aho Williamson. “Marketers have shown solid engagement rates with Twitter advertising—in some cases better than those on Facebook—despite Twitter’s relatively smaller audience.”

Twitter Ad Revenues to Near $400 Million by 2013

Why it is So Hard to Innovate Like Apple

Those of you who work inside larger enterprises will appreciate the sentiment that virtually no companies innovate the way Apple does. And even Apple might regress towards the mean in five years or so.

"While driving our new Acura RDX the other day (and trying to find something via the navigation system), my partner and I both looked at each other and said, "When will Apple make a car? They'd get it right," says Jack Aaronson, The Aaronson Group CEO.

"We say the same thing about cable TV interfaces, wishing that Apple TV would finally become a higher priority for Apple. We say the same thing looking at the new slew of Android phones, and are frustrated that Google has chosen to emulate Microsoft's way of designing software instead of Apple's," he says.

Most of you who work in larger enterprises will appreciate the many subtle, and not so subtle ways business-relevant innovation can be stifled. Those of you who work at small organizations will face equally-substantial obstacles, but for different reasons. Bigger organizations have the resources to innovate in relevant ways, but typically have human obstacles to doing so. Smaller organizations often have the will, but not the resources.

If innovation were really easy, more firms would be clearly recognized as outstanding in that regard. Innovation, no less than anything else in the real world, appears to be a "Bell Curve."

Innovate or Get Out of the Way

Amazon to buy WebOS?

Amazon is rumored to be among the top contenders to buy WebOS from Hewlett-Packard. The obvious application would be the 10-inch tablet Amazon is expected to develop.

The Kindle Fire is powered by Android, but it’s been heavily customized by Amazon to the point where you can barely tell, some would argue. Other players in the device business have reasons to create an ecosystem of products unified around a single operating system, Apple being the classic example.

But there has been a rapid trend towards operating system fragmentation recently, with major smart phone suppliers deciding they must own both their operating system and hardware to compete at the top levels globally, in both smart phones and tablets.

Amazon might believe it needs a similar degree of uniqueness for its larger-screen devices that might function less as e-readers and more as full-fledged tablets.

Amazon to buy WebOS?

Microsoft to Add Comcast, Verizon Video Content to Xbox Live

Microsoft Corp. plans to offer online video licensed from Comcast Corp. and Verizon Communications through Xbox Live, so long as consumers already are subscribers to either provider, Bloomberg reports.

Microsoft also is said to be in talks with almost two dozen providers of music, sports, movies and TV shows in the United States and Europe, and may announce an expanded Xbox Live streaming service as soon as next week. Essentially, the moves would allow Comcast and Verizon to enable their current services on the Xbox platform, increasing stickiness, while Xbox Live would presumably also become a more-appealing service.

Microsoft to Add Comcast, Verizon Videoto Xbox Live

How Low can Kindle Prices Go?

Kindles at $79 and $99 ought to drive quite a lot of adoption of basic e-readers. The issue is what comes next, at the low end.

Over the last four years, prices for the low-end model have dropped from about $400 to $80.

Bundle a content subscription and the price could be really low.

Kindle pricing over time

"Unintended Consequences" of Financial Reform Laws

Bank of America Corp. plans to charge its customers a $5 monthly fee for making debit-card purchases starting early in 2012, the Wall Street Journal reports.

The fee will apply to customers with various checking accounts during any month they use their debit card to make a purchase. The fee will not apply to customers who do not use their debit card to make a purchase or who only use it to make ATM transactions. The fee also will not apply to customers in certain premium accounts.

Bank of America is trying to cushion revenue losses it expects to incur from new caps on the fees merchants pay when a customer uses a debit card at their stores. In June, the Federal Reserve Board finalized rules capping such fees at 24 cents per transaction, compared with a current average of 44 cents.

Other banks have introduced or are testing new fees in response to the debit-fee caps, which stem from a provision known as the Durbin amendment in last year's Dodd-Frank financial regulation overhaul legislation.

The moves illustrate the unintended consequences that tend to develop from "well meaning" regulation. The Durbin amendment ostensibly was an attempt to "protect" consumers and retailers from "high transaction fees." But the rules also represent an immediate $6.6 billion reduction in bank revenue.

So what will the banks do? Raise other fees to recoup the losses. Retailers might still be happy to pay the lower transaction fees. But the shortfall will be made up directly by customers.

BofA to Charge Debit-Card Fee - WSJ.com (subscription required)