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UK’s CMA accepts Google’s post-cookie pledges, will ‘closely monitor’ Privacy Sandbox plan



The UK’s competition authority has accepted commitments from Google over how it develops the post-cookie future of interest-based ad targeting online under its self-styled “Privacy Sandbox” proposal.

In an announcement today, the Competition and Markets Authority (CMA) said it is satisfied that the legally binding commitments secured from Google will ensure that the evolution of ad tracking will promote competition, support publishers to raise revenue from ads while also safeguarding consumer privacy. So quite the juggling act.

In a statement, the CMA’s chief exex, Andrea Coscelli, said:

“Our intervention in this case demonstrates our commitment to protecting competition in digital markets and our global role in shaping the behaviour of world-leading tech firms.

“The commitments we have obtained from Google will promote competition, help to protect the ability of online publishers to raise money through advertising and safeguard users’ privacy.

“While this is an important step, we are under no illusions that our work is done. We now move into a new phase where we will keep a close eye on Google as it continues to develop these proposals.
“We will engage with all market participants in this process, in order to ensure that Google is taking account of concerns and suggestions raised.”

The CMA has been investigating Google’s plan to deprecate support for tracking cookies in its Chrome browser for over a year — following complaints by a coalition of digital marketing companies that the move risked further entrenching Google’s dominance of the digital advertising market.

The competition watchdog very much agrees there are competition problems in the mobile market — per preliminary findings of its mobile market study, which were published in December. (And it continues to consult on potential interventions aimed at boosting competition and increasing consumer choice in both Apple’s iOS and Google’s Android mobile ecosystems — such as making it easier to switch between the two ecosystems and sideload apps or access web apps; mandating the ability for apps to use alternative payment tech; and making it easier for users to choose an alternative (non-bundled) services as the default, such as browsers.)

But the CMA is is also, today, giving Google the greenlight to continue developing Privacy Sandbox — just with a set of legally binding conditions attached to how it does that.

An earlier set of commitments offered by Google on the Sandbox were not deemed sufficient, following market feedback, leading to an improved offer last November — which added the key element of a monitoring trustee, as well as a slightly longer timeframe for the reporting requirements (six years) and other tweaks intended to provide greater reassurance to the market.

It’s this beefed up set of commitments the CMA has accepted now. Although it notes that it could choose to reopen an investigation if it’s not satisfied with how the Sandbox is being developed — also retaining the ability to impose interim measures in future if necessary.

Otherwise, Google’s commitments are set to terminate six years from February 11, 2022 — so running until 2028 — unless it is granted an early release by the regulator.

The full list binding Google — which spans development and implementation criteria for the Sandbox; transparency and consultation requirements with third parties; mechanisms for regulatory involvement in the design process and more — can be found here.

In its press release, the CMA highlights a few elements, noting the agreement commits Google to involving the CMA and the UK’s Information Commissioner’s Office (ICO), which leads on consumer privacy issues, in the development and testing of the Sandbox proposals; boosts transparency and engagement for third parties, including the publication of test results and an option for the CMA to require Google to address specific concerns; and binds Google by banning self-preferencing of its own ad services and through restrictions on data-sharing within its own ecosystem to ensure it doesn’t gain an advantage over competitors when third-party cookies are removed.

It also reaffirms that Google will not remove tracking cookies until it is satisfied that its competition concerns have been addressed.

The appointment of a monitoring trustee — which will clearly be a crucial role in ensuring Google actually does what it has agreed it will here — is expected to be made “shortly”, per the CMA.

In its own blog post on this latest chunk of the tracking cookie deprecation saga, Google writes that the aim of the commitments is “to provide reassurance that the Privacy Sandbox will protect consumers and support a competitive ad-funded web, and not favor Google”.

The adtech giant sumarizes the package of pledges into three main “principles”:

“First, the changes we will make in Chrome in the context of the Privacy Sandbox initiative will apply in the same way to Google’s advertising products as to products from other companies. Second, we will design, develop and implement Privacy Sandbox with regulatory oversight and input from the CMA and the ICO. And third, we will inform the CMA in advance of our intention to remove third-party cookies and agree to wait for their feedback on whether any competition law concerns remain.”

“We’re pleased that today the CMA has accepted these commitments, which now go into immediate effect,” Google adds, before reiterating its promise to apply the agreed approach everywhere: “We will apply the commitments globally because we believe that they provide a roadmap for how to address both privacy and competition concerns in this evolving sector.”

It is still tbc what the Privacy Sandbox will actually be and mean in practice — as the stack of alternative ad targeting and measurement technologies remains in development.

Just recently, for example, Google announced a major change by killing off FLoCs — aka, its erstwhile flagship replacement ad targeting idea to put web users into buckets of interest-based cohorts for targeting (aka FLoCs), which critics such as the EFF had dubbed a privacy disaster — swapping in a new idea to target web users based on “topics” tracked locally in the browser.

Whether or not topics-based tracking is a substantial improvement, in privacy terms, vs FLoCs — or, indeed, whether it’s substantially worse than contextual targeting (which does not require any user data to be processed to select relevant ads to serve but instead ads are targeted based on the website content that’s being accessed at the time, likely combined with broad-brush signals such as a general location) — all remains to be seen.

So we still don’t know exactly what will replace tracking cookies when/if Google finally turns off support (at the earliest next year).

But what we do know is that it won’t only be Google deciding what that future looks like — given it’s given a legally binding pledge to involve regulators, factor in feedback from third parties and act on concerns.

In its blog post today, Google writes that it will be “consulting with the CMA and ICO on a regular basis in relation to the design, development and implementation of the Privacy Sandbox (including testing and public announcements)”, as well as “increas[ing] its engagement with industry stakeholders (including publishers, advertisers and ad tech providers) by providing a systematic feedback process to take on board reasonable views and suggestions”.

Info on how Google is engaging with third parties in the design and development of the Sandbox are set out on a website — — which includes a project overview and a timeline; and, per the CMA, now includes new details on how it will engage with third parties.

For all the criticism Google can and does attract — including via some highly relevant antitrust lawsuits in the US which certainly underline the need for close monitoring of its behavior — when it comes to Privacy Sandbox the tech giant is at least evolving its proposals in response to antitrust concern and critical feedback.

Meanwhile the UK-based coalition of marketers which has been raising complaints against Privacy Sandbox — including in the EU — was still sounding off about Google’s proposal earlier this week.

The self-styled Movement for an Open Web (aka, MOW; neé Marketers for an Open Web) put out a press release calling for the CMA to include what it described as “non-discrimination remedies” against Sandbox in its ongoing mobile ecosystem study.

In it MOW appears to be lobbying to continue the privacy-horrible status quo — in which scores of faceless identity- and data-trading third parties are able to track web users’ browsing via the use of what are billed as “pseudonymous identifiers” — yet which, through syncing and matching (with other “alternative ID providers” in a surveillance-based tracking ecosystem) allow for ad IDs to be linked back to individuals to power user profiling and exploitative targeting, all of which are horrible for privacy.

The ICO itself has put the adtech industry on notice that a ‘keep on tracking’ scenario simply won’t fly — with the outgoing commissioner writing in an opinion in November that adtech must move away from online tracking and profiling, stop obfuscating how it operates and provide consumers with genuine control over what’s done with their data.

“Any proposal that has the effect of maintaining or replicating existing tracking practices (such as those described in the 2019 Report) is not an acceptable response to the significant data protection risks that the Commissioner has already described,” the outgoing commissioner Elizabeth Denham also warned in a thinly veiled parting shot at unreformed adtech.

Google’s blog post today makes an explicit reference to this opinion — with the company writing:

“Privacy by design and by default have been at the heart of the Privacy Sandbox from the outset, and we are also intent on ensuring that the new tools meet the requirements set out in the recent ICO’s Opinion on Data protection and privacy expectations for online advertising proposals. To that end, we are designing these new tools to avoid cross-site tracking, provide people with better transparency and control, and result in better outcomes for people and businesses on the web.”

The data-mining tech giant’s claim to be championing privacy of course deserves plenty of critical scrutiny.

However when set against the vista of a trench-digging adtech industry at large — which desperately continues to reject calls for reform in favor of clinging to creepy tracking, whether by sicking up some new window dressing for the same old tracking wheeze via slightly respun jargon or through head-in-the-sand denials that its built its ad auction castle on illegal sands — Google’s Privacy Sandbox starts to look very enlightened indeed.

As ever, the devil will be in the detail. But if it’s a choice between change or the creepy status quo it’s clear where the web needs to go.

We asked MOW for its response to the package of commitments the CMA has now accepted. At the time of writing it did not have one but a spokesman it was preparing a press release to put out later this morning — so we’ll update this report when we get it.


Tesla more than tripled its Austin gigafactory workforce in 2022



Tesla’s 2,500-acre manufacturing hub in Austin, Texas tripled its workforce last year, according to the company’s annual compliance report filed with county officials. Bloomberg first reported on the news.

The report filed with Travis County’s Economic Development Program shows that Tesla increased its Austin workforce from just 3,523 contingent and permanent employees in 2021 to 12,277 by the end of 2022. Bloomberg reports that just over half of Tesla’s workers reside in the county, with the average full-time employee earning a salary of at least $47,147. Outside of Tesla’s factory, the average salary of an Austin worker is $68,060, according to data from ZipRecruiter.

TechCrunch was unable to acquire a copy of the report, so it’s not clear if those workers are all full-time. If they are, Tesla has hired a far cry more full-time employees than it is contracted to do. According to the agreement between Tesla and Travis County, the company is obligated to create 5,001 new full-time jobs over the next four years.

The contract also states that Tesla must invest about $1.1 billion in the county over the next five years. Tesla’s compliance report shows that the automaker last year invested $5.81 billion in Gigafactory Texas, which officially launched a year ago at a “Cyber Rodeo” event. In January, Tesla notified regulators that it plans to invest another $770 million into an expansion of the factory to include a battery cell testing site and cathode and drive unit manufacturing site. With that investment will come more jobs.

Tesla’s choice to move its headquarters to Texas and build a gigafactory there has helped the state lead the nation in job growth. The automaker builds its Model Y crossover there and plans to build its Cybertruck in Texas, as well. Giga Texas will also be a model for sustainable manufacturing, CEO Elon Musk has said. Last year, Tesla completed the first phase of what will become “the largest rooftop solar installation in the world,” according to the report, per Bloomberg. Tesla has begun on the second phase of installation, but already there are reports of being able to see the rooftop from space. The goal is to generate 27 megawatts of power.

Musk has also promised to turn the site into an “ecological paradise,” complete with a boardwalk and a hiking/biking trail that will open to the public. There haven’t been many updates on that front, and locals have been concerned that the site is actually more of an environmental nightmare that has led to noise and water pollution. The site, located at the intersection of State Highway 130 and Harold Green Road, east of Austin, is along the Colorado River and could create a climate catastrophe if the river overflows.

The site of Tesla’s gigafactory has also historically been the home of low-income households and has a large population of Spanish-speaking residents. It’s not clear if the jobs at the factory reflect the demographic population of the community in which it resides.

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Launch startup Stoke Space rolls out software tool for complex hardware development



Stoke Space, a company that’s developing a fully reusable rocket, has unveiled a new tool to let hardware companies track the design, testing and integration of parts. The new tool, Fusion, is targeting an unsexy but essential aspect of the hardware workflow.

It’s a solution born out of “ubiquitous pain in the industry,” Stoke CEO Andy Lapsa said in a recent interview. The current parts tracking status quo is marked by cumbersome, balkanized solutions built on piles of paperwork and spreadsheets. Many of the existing tools are not optimized “for boots on the ground,” but for finance or procurement teams, or even the C-suite, Lapsa explained.

In contrast, Fusion is designed to optimize simple inventory transactions and parts organization, and it will continue to track parts through their lifespan: as they are built into larger assemblies and go through testing. In an extreme example, such as hardware failures, Fusion will help teams connect anomalous data to the exact serial numbers of the parts involved.

Image credit: Stoke Space

“If you think about aerospace in general, there’s a need and a desire to be able to understand the part pedigree of every single part number and serial number that’s in an assembly,” Lapsa said. “So not only do you understand the configuration, you understand the history of all of those parts dating back to forever.”

While Lapsa clarified that Fusion is the result of an organic in-house need for better parts management – designing a fully reusable rocket is complicated, after all – turning it into a sell-able product was a decision that the Stoke team made early on. It’s a notable example of a rocket startup generating pathways for revenue while their vehicle is still under development.

Fusion offers particular relevance to startups. Many existing tools are designed for production runs – not the fast-moving research and development environment that many hardware startups find themselves, Lapsa added. In these environments, speed and accuracy are paramount.

Brent Bradbury, Stoke’s head of software, echoed these comments.

“The parts are changing, the people are changing, the processes are changing,” he said. “This lets us capture all that as it happens without a whole lot of extra work.”

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Amid a boom in AI accelerators, a UC Berkeley-focused outfit, House Fund, swings open its doors



Companies at the forefront of AI would naturally like to stay at the forefront, so it’s no surprise they want to stay close to smaller startups that are putting some of their newest advancements to work.

Last month, for example, Neo, a startup accelerator founded by Silicon Valley investor Ali Partovi, announced that OpenAI and Microsoft have offered to provide free software and advice to companies in a new track focused on artificial intelligence.

Now, another Bay Area outfit — House Fund, which invests in startups with ties to UC Berkeley — says it is launching an AI accelerator and that, similarly, OpenAI, Microsoft, Databricks, and Google’s Gradient Ventures are offering participating startups free and early access to tech from their companies, along with mentorship from top AI founders and executives at these companies.

We talked with House Fund founder Jeremy Fiance over the weekend to get a bit more color about the program, which will replace a broader-based accelerator program House Fund has run and whose alums include an additive manufacturing software company, Dyndrite, and the managed app development platform Chowbotics, whose most recent round in January brought the company’s total funding to more than $60 million.

For founders interested in learning more, the new AI accelerator program runs for two months, kicking off in early July and ending in early September. Six or so companies will be accepted, with the early application deadline coming up next week on April 13th. (The final application deadline is on June 1.) As for the time commitment involved across those two months, every startup could have a different experience, says Fiance. “We’re there when you need us, and we’re good at staying out of the way.”

There will be the requisite kickoff retreat to spark the program and founders to get to know one another. Candidates who are accepted will also have access to some of UC Berkeley’s renowned AI professors, including Michael Jordan, Ion Stoica, and Trevor Darrell. And they can opt into dinners and events in collaboration with these various constituents.

As for some of the financial dynamics, every startup that goes through the program will receive a $1 million investment on a $10 million post-money SAFE note. Importantly, too, as with the House Fund’s venture dollars, its AI accelerator is seeking startups that have at least one Berkeley-affiliated founder on the co-founding team. That includes alumni, faculty, PhDs, postdocs, staff, students, dropouts, and other affiliates.

There is no demo day. Instead, says Fiance, founders will receive “directed, personal introductions” to the VCs who best fit with their startups.

Given the buzz over AI, the new program could supercharge House Fund, the venture organization, which is already growing fast. Fiance launched it in 2016 with just $6 million and it now manages $300 million in assets, including on behalf of Berkeley Endowment Management Company and the University of California.

At the same time, the competition out there is fierce and growing more so by the day.

Though OpenAI has offered to partner with House Fund, for example, the San Francisco-based company announced its own accelerator back in November. Called Converge, the cohort was to be made up of 10 or so founders who received $1 million each and admission to five weeks of office hours, workshops and other events that ended and that received their funding from the OpenAI Startup Fund.

Y Combinator, the biggest accelerator in the world, is also oozing with AI startups right now, all of them part of a winter class that will be talking directly with investors this week via demo days that are taking place tomorrow, April 5th, and on Thursday.

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