Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy

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Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy
FALL 2018

                                    facing
                                    facebook’s
                                    failure
Plus: The (Browser) Cookie That Ate the World
      Smartphones Threaten Our Schools          Also, some
                                                good news:
                                                Companies
                                                Striving
$15 USD                                         to Do Right
Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy
Life-changing technology
for a healthier world.
At Johnson & Johnson, we believe technology has the power to transform the delivery
of health care around the world. That’s why we are a proud sponsor of Techonomy.

Because changing health care changes everything.

                                                                              © Johnson & Johnson Services, Inc. 2018
Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy
1

 Techonomists Take Center Stage

     Arati Prabhakar      Bernard Tyson       Padmasree Warrior      Marc Benioff

      Jack Dorsey       Stacy Brown-Philpot    Mark Zuckerberg        James Park

     Patrick Collison     John Chambers       Jessica Rosenworcel   Sen. Cory Booker

     Marissa Mayer          Peter Thiel          Jaron Lanier          Bill Gurley

               Techonomy has a history of bringing together eminent
           leaders for deep conversation about how tech alters the world,
       and how we can all be more effective. “Harnessing tech for responsible
                growth” is our theme this year, reflecting our passion
              for a better, fairer, more sustainable and inclusive world.

      Be a Techonomist. Join the conversation online at www.techonomy.com
              and at our event in New York City, May 14 & 15, 2019.
TECHONOMY _ 2018
Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy
2
Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy
3

                                     Meet Team
                                     Techonomy
                                     We work steps from Times
                                     Square, a place where you
                                     can find people from just
                                     about anywhere in the world.
                                     It’s the perfect home for
                                     Techonomy Media. We want
                                     to see the world through as
                                     many different lenses as
                                     we can as we seek to
                                     understand how the world
                                     is changing and how we
                                     can help make it better.
                                       Our mission—at our events,
                                     online, and in print—is to
                                     infuse more humane thinking
                                     into technology and busi-
                                     ness. Let’s create responsible
                                     growth: thinking through the
                                     impact of emerging tech, the
                                     potential of business to drive
                                     progress, and the conse-
                                     quences of getting
                                     the choices wrong.

                                     KIRSTEN CLUTHE
                                     PROGRAM DIRECTOR

                                     CAITLIN HAMILTON
                                     DIRECTOR OF
                                     EXECUTIVE RELATIONS
                                     AUDRA HEINRICHS
                                     EXECUTIVE ASSISTANT

                                     JOSH KAMPEL
                                     CEO

                                     MARY KAN D’ANDREA
                                     EDITORIAL COORDINATOR

                                     DAVID KIRKPATRICK
                                     FOUNDER/EDITOR-IN-CHIEF
PHOTO: REBECCA GREENFIELD

                                     WINNIE MARION
                                     SUMMER INTERN

                                     JEFF PUNDYK
                                     CHIEF STRATEGY OFFICER/
                                     EDITORIAL DIRECTOR

                  TECHONOMY _ 2018
Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy
4                                                                                                     CONTENTS

        he (Browser)Cookie that Ate the World
    22 T                                                                                                           by Janet Guyon

        ill Technology Kill Education? by Catherine Steiner-Adair
    28 W
       
    32 Can Companies Be Good? by Jeff Pundyk
                  36 What’s the Purpose of Purpose? by Mike Arauz 

        ashington Just Doesn’t Grok Tech by Tam Harbert
    38 W
        ech Giants Aim for Healthcare
    50 T
                   by Abigail Christopher

                                                                                                            p 28

                                                                                                                   p 38

    ON THE COVER
                                                                                                      6                     7
                                                                                                      Andela Brings       Is Yeast the
                                                                  FALL 2018                           African Tech Talent Future of
                                                                                                      To The World        Manufacturing?
                                                                                                      9                   10
                                                                                                      At Novozymes,         Science Fiction
                                                                                                      Sustainable           Invades
                                        facing
                                        facebook’s
                                                                                                      Development Is        the C-suite
                                        failure
    Plus: The (Browser) Cookie That Ate the World
                                                                                                      Good Business
          Smartphones Threaten Our Schools          Also, some
                                                    good news:
                                                    Companies
                                                    Striving
    $15 USD                                         to Do Right

                                                                                                 02   Techonomy’s Team
    Cover by                                                                  Rohingya Muslims
                                                                              flee violence in   12   Voices from Techonomy NYC 2018
    Mike McQuade
                                                                              Myanmar.           14   Offstage at Techonomy NYC
    Publication Design
    by Rob Hewitt                                                                                54   Techonomy     NYC (our May conference)

                                                                                                                                        TECHONOMY _ 2018
Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy
EDITOR’S LET TER                          5

        FA C E B O O K FA I L :
        SPECIAL SECTION

16      Facing Facebook’s Failures                 Tech, for
                                                   Good or Bad
        by David Kirkpatrick

20      An Iranian Rights Campaign
        Struggles With Social Media                OUR LENS HERE IS TECH-DRIVEN CHANGE,
        by Kambiz Foroohar                         but these days it’s easy to get blinded
                                                   and lose our way. In some ways much of
21      Five Ways Facebook Can Do                  the tech industry seems to have done
                                                   that, as this issue of Techonomy Magazine
        Right by Its Next Billion                  demonstrates.
        by Bhaskar Chakravorti                        Our belief is that tech is the key to
                                                   more rapid progress for mankind, and
                                                   for achieving the U.N.’s Sustainable
                                            p 20   Development Goals for 2030. But
                                                   alongside transformative progress, tech
                                                   has also caused serious social harm.
                                                      Facebook made terrible errors it is only
                                                   belatedly trying to remedy. And those
                                                   smartphones that have transformed our
                                                   daily lives? They are also putting our
                                                   schools in crisis. Since government fails
                                                   to understand tech, effective legislative
                                                   remedies seem unlikely. You’ll read about
                                                   all these topics.
                                                      Still, business is starting to step into
                                                   the breach, as our own Jeff Pundyk ex-
                                                   plains. And articles here about companies
                                                   like Amyris, Andela, and Novozymes may
                                                   restore your hope for humanity’s future,
                                                   hard as that is these days.
                                                      We’re also proud to publish
                                                   ideals-driven articles by leaders from our
                                                   new partners at Copperfield Advisory,
              PA RT N E R I N S I G H T S          Ascent Leadership Networks, and The
                                                   Second Shift. We have now become part
                                                   of Clarim Holdings. So we’re entering
                                                   a new phase, more dedicated than ever
43 Resilience is Key to Modern Leadership          to the proposition that tech and business
                                                   must be forces for good.
46 Fake News is a Business Crisis Too                 Enjoy our magazine, come to our
                                                   conferences, and send us your ideas, so
                                                   we can improve and learn together.
47 Tech Bridges the Gender Equality Gap

48 The Marriage of Power and Leadership

                                                    DAVID KIRKPATRICK, editor-in-chief

TECHONOMY _ 2018
Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy
6                                                  C O M PA N I E S D O I N G G O O D

    “BRILLIANCE IS EVENLY DISTRIB-
    UTED,” said Andela co-founder
    Christina Sass onstage at Techonomy
    NYC in May 2018. She was talking
    about people. Her company aims to be
    the answer to a software development
    and programming talent shortage,
    widening the search so employers can

                                                                                                                                     P H OTO : A N D E L A / M O H I N I U F E L I
    find employees in new places. In the
    process, Andela is creating economic
    opportunity in developing countries.
        According to Code.org and sta-
    tistics from The Conference Board,
    there are more than 544,000 open
    computing jobs in the United States,
    more positions than the nation’s
    universities and colleges can hope to       Tolu Komolafe, one of Andela’s most senior developers and co-founder of the Ladies
    fill with recent graduates. Andela’s        in Tech organization, at work in EPIC Tower in Lagos, Nigeria.
    response is to identify talented young
    people in Africa, train them in soft-       budding developers are then con-             part of our team.”
    ware development, and place them in         tracted out to companies across the             Andela has attracted $81 million
    jobs at companies around the world          globe, working remotely. At times the        in funding from investors including
    without requiring them to move.             developers head to lengthy, on-site          South African-based venture capital
        Andela offers a window into a           visits at their contract companies in        firm CRE Venture Capital, the Chan
    promising possible future for work:         the United States, Europe, and else-         Zuckerberg Initiative, and Spark
    a distributed workforce that is more        where, building work relationships           Capital, among others. And the
    diverse and creates economic oppor-         and solidifying ties.                        company is swimming in qualified
    tunity where there was little before.          Andela serves as the employer of          applicants, enabling it to hire only
        Founded in 2014 and                                 record but assigns each          the most talented coders. It now has
    venture funded, Andela                                  worker full-time to the          more than 1,200 employees, many
    serves as a recruiter, filling   Techonomy.com          client. Some now have            based in African urban hubs, includ-
    open developer roles at        Christina Sass spoke at  already  worked  for their       ing Lagos, Nigeria; Nairobi, Kenya;
    partner companies. But it         Techonomy NYC.        companies for more than          and Kampala, Uganda, with more to
    does so by turning to the        You can see her talk   two years.                       come. Andela’s Kigali, Rwanda office
    largely untapped talent        here: techonomy.com/        Since July 2016, Andela       is slated to open in January 2019.
                                            nyc18
    pool of Africa, home to                                 has partnered with The              This company’s aspirations go
    some of the world’s most inter-             Zebra, a car insurance comparison            beyond its own profits. Andela hopes
    net-savvy populations and sophisti-         site, which has brought 13 engineers         that the jump-start it gives trainees
    cated tech enclaves.                        onto its team in Austin, Texas. “In          will not only give them work experi-
        Using tests and boot camps, the         addition to [their] technical contribu-      ence but inspire them to found local
    company selects coders and pro-             tions, they’ve also brought an energy        or global startups of their own.
    grammers and then trains them for           that is infectious,” Meetesh Karia,
    six months. These young coders              CTO of The Zebra, says of the Andela         MARY KAN D’ANDREA is Techonomy’s
    often have educational backgrounds          engineers. “They’ve become a core            editorial coordinator.
    in computer science, though they

                                               Andela Brings African
    generally lack the practical experience
    needed to turn their studies into a
    career.
        With Andela, they don’t get your
    usual workplace training experi-           Tech Talent To The
    ence. On top of receiving a computer,
    salary, and professional training, the
    package includes subsidized housing
                                               Rest of The World
    and regular meals. The company’s                                          by Mary Kan D’Andrea

                                                                                                             TECHONOMY _ 2018
Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy
C O M PA N I E S D O I N G G O O D                                               7

                                          JOHN MELO BELIEVES THAT THE
                                          path to sustainable development is
                                          to create environmentally friendly
                                          products that are so appealing that
                                          demand forces the replacement of
                                          traditional manufacturing methods.
                                          He hopes this will eliminate pollu-
                                          tion and environmental degradation,
                                          as he builds synthetic genomics
                                          firm Amyris, where he is CEO. “For
                                          the average consumer in 10 years,
P H OTO : C O U RT E SY O F A M Y R I S

                                          sustainably made products should
                                          become the new normal, and harmful
                                          products will be the exception.”
                                             Amyris achieved prominence
                                          in the genomics field long before
                                          consumers heard its name. The
                                          company’s first endeavor, funded by
                                          a $42.5 million grant in 2004 from
                                          the Bill & Melinda Gates Foundation,          Amyris labs near Berkeley, California
                                          was to find an alternative means of
                                          producing an antimalarial drug that           from the livers of sharks, led to the    development of a sweetener based
                                          until then had required isolating             launch of the company’s Biossance        on natural sucrose but that has no
                                          chemicals from a rare tree.                   skincare line. “[It] has become the      calories. “Your taste receptors think
                                             But the yields from that process           fastest-growing skincare brand in        you’re eating sugar,” Melo says. It
                                          had been unreliable.                                      the U.S. by delivering       may sound too good to be true, but
                                          Amyris’ solution offered                                  a sustainably sourced        Melo is confident Amyris has the
                                                                           Techonomy.com
                                          some of the first proof that                              moisturizer that is healthy  science perfected. He says the product
                                          synthetic genomics—re-en-        John Melo spoke at for the consumer,” says            will start shipping commercially
                                                                          Techonomy NYC. You
                                          gineering the genomes of                                  Melo. He claims the shift to this year. The hard part will be
                                                                           can see his talk here:
                                          living things to produce       techonomy.com/nyc18 yeast-generated squalene            scaling up manufacturing to create
                                          desired compounds in a                                    is saving as many as 3 mil-  thousands of tons per year in giant
                                          safe, reliable manufactur-                                lion sharks per year.        vats of special yeast.
                                          ing process—could be commercially                Synthetic genomics might sound           “So why does biotech matter?”
                                          viable. Amyris scientists fine-tuned a        like a niche field, but Melo says the    asks Melo. “Because with biotech
                                          strain of yeast to produce artemisinic        potential for creating more sustain-     and fermentation you can have
                                          acid, a precursor component to the            able products is huge. Strides in the    sustainable and healthy products
                                          antimalarial drug.                            lab are helping to drive further prog-   for everyone on the planet.”
                                             The yeast-derived compound went            ress. Each new, sustainably grown
                                          to market in 2013. Since then, Melo           product requires company scientists      MEREDITH SALISBURY is a journalist
                                          estimates, steady availability of the         to engineer and perfect a new strain     focused on genomics and life sciences.
                                          drug has saved the lives of 1 million         of yeast, but the time they take to do
                                          children each year, reducing the              that is getting much shorter.            DAVID KIRKPATRICK is Techonomy’s
                                          death toll by more than 60 percent.              Now the company is finalizing         editor-in-chief.
                                             Today, Amyris is working to ex-
                                          pand the portfolio of compounds its
                                          strains of yeast can generate. But its
                                          focus remains on products that have       Is Yeast the Future of
                                                                                    Manufacturing?
                                          traditionally been extracted from
                                          rare or difficult-to-access sources
                                          in nature. Yeast-based manufac-
                                          turing of squalene, a skin-softening                                     Amyris is betting it is.
                                          emollient previously extracted
                                                                                                                      by Meredith Salisbury and David Kirkpatrick

                                          TECHONOMY _ 2018
Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy
9

                                                              TO HEAR NOVOZYMES CEO Peder
                                                              Holk Nielsen tell it, humans are on
                                                              the verge of making the transition
                                                              from a petroleum-powered era to
                                                              what he calls the “Age of Biology.”
                                                              The Danish company he leads focus-
                                                              es on adapting enzymes for commer-
                                                              cial utility, replacing manufacturing
                                                              processes that previously relied
                                                              on fossil fuels. “Through the use
                                                              of nature’s own technology, we can
                                                              produce a wide variety of bio-based
                                                              chemicals, materials, pharmaceu-
                                                              ticals, food, feed, and fuels,” Holk
                                                              Nielsen says. “We will replace our       Tremella mesenterica is a fungal par-    Mycologists from Novozymes, Sara
                                                              polluting past and oil dependence        asite used to make enyzmes. Enzymes      Landvik, left, and Mikako Sasa look
                                                              with a green future based on renew-      are used across a range of industries,   for wood-degrading fungi on dead
                                                                                                       including in laundry detergents where    trunks in Hareskoven Forest, near
                                                              able inputs.”
                                                                                                       they enable low-temperature washing.     Copenhagen. Novozymes’ enzymes
                                                                 It’s an audacious goal, but one                                                originate from either bacteria or fungi.
                                                              the company has already begun to

                                                                                                                                                                                               C O M PA N I E S D O I N G G O O D
                                                              demonstrate as feasible. An enzyme
                                                              engineered by Novozymes scientists
                                                              is now widely added to laundry
                                                              detergent to make it possible to clean   microbes that help plants grow, while    world—they are also clear business
                                                              fabrics without hot water. By reduc-     using others to improve yields in        drivers for the decades to come.” He
                                                              ing the required water temperature       animal husbandry and farming. All        contends that more robust devel-
                                                              from 140 degrees Fahrenheit to 80        this makes for good business: Novo-      opment practices will lead to more
                                                              degrees, Holk Nielsen says, this prod-   zymes brought in $2.2 billion in 2017    sustainable societies, potentially
                                                              uct alone has dramatically lowered       revenue and employs nearly 6,500         helping to stabilize economies and
                                                              the energy consumption needed for        employees.                               environments.
P H OTO : N O V OZ Y M E S / C A R ST E N S N E J B J E R G

                                                              a common task. Depending on the             The Novozymes agenda dovetails           That outlook lets Holk Nielsen see
                                                              power source, it also reduces gen-       nicely with the United Nations’ Sus-     potential where others see looming
                                                              eration of carbon dioxide (CO2) that     tainable Development Goals, which        catastrophe. “Some of the world’s
                                                              contributes to climate change.           Holk Nielsen credits with helping        most pressing challenges—climate
                                                                 Holk Nielsen estimates that in        to establish “strong momentum in         change, dwindling natural resources,
                                                              total, the company’s products have       the private sector” for innovative       rising population—represent some of
                                                              reduced global CO2 output by 76          approaches like his. “Increasingly,      the biggest future business opportu-
                                                              million tons. That’s the equivalent of   companies are realizing that they        nities,” he says.
                                                              getting 35 million cars off the road.    can do well—by doing good,” he says.
                                                              Other Novozymes programs involve         “We believe the Global Goals are not     MEREDITH SALISBURY is a journalist
                                                              boosting crop output by applying         only necessary and important for the     focused on genomics and life sciences.

                                                                                                       At Novozymes,
                                                                 Techonomy.com
                                                                                                       Sustainable
                                                               Peder Holk Nielsen spoke
                                                                 at Techonomy NYC in
                                                                                                       Development Makes
                                                              May 2018. You can see his
                                                              talk here: techonomy.com/
                                                                          nyc18
                                                                                                       for Good Business
                                                                                                                                   by Meredith Salisbury

                                                              TECHONOMY _ 2018
10                                         ST R AT E GY

                                                              IN 1961, PRESIDENT JOHN F. KENNEDY
                                                              called for a moon shot. Sensing a
                                                              crisis in national confidence, he laid
                                                              down a challenge: put Americans on
                                                              the moon and return them safely to
                                                              Earth before the end of the decade.
                                                              Just a little more than eight years later,
                                                              Apollo 11 landed on the moon.
                                                                 Kennedy’s call to action was a strat-
                                                              egy that was rooted in science fiction.
                                                              The idea of landing on the moon
                                                              captured the national imagination
                                                              precisely because it was so audacious,
                                                              like something out of Flash Gordon.
                                                                 Now corporate and societal leaders
                                                              need a similar aspirational mindset to
                                                              inspire their organizations—and
                                                              to help imagine a future that can seem
                                                              unimaginable. They are turning to
                                                              science fiction.
                                                                 “We’re all struggling with what will
                                                              the future become and be like,” said
                                                              Brenda Cooper, the CIO of the city of
                                                              Kirkland, Washington, in a recent
                                                              podcast. “Scenario planning is be-
                                                              ginning to be written out as a science
                                                              fiction story.” Cooper should know.
                                                              She is also the author of nine science
                                                              fiction and fantasy books.
                                                                 Technology is disrupting our
                                                              notion of what’s possible in ways
                                                              that would have seemed far-fetched
                                                              only a short time ago. More and
                                                              more, reality can be read as science
                                                              fiction, and what seemed outlandish
                                                              in the past can be seen as a portent
                                                              of what has now actually happened.
                                                              People first heard of the flip phone
                                                              on Star Trek, the smartwatch in Dick
                                                              Tracy Sunday comics and self-driv-
                                                              ing (and self-cleaning) cars in Isaac
                                                              Asimov and Arthur C. Clarke stories.
                                                              Something like artificial intelligence
                                                              goes back at least to 1872, in Samuel
                                                              Butler’s novel Erewhon.

     Science Fiction                                             The very term ‘moon shot’ has
                                                              been adopted by Google and others
                                                              to mean a project that addresses a

     Invades the C-suite                                      huge problem or proposes a radical
                                                              solution. It is meant to free employees
                                                              to aspire to what might otherwise
     Faced with an unimaginable future,                       seem impossible. Google’s moon
     corporate strategists are drawing on their               shots, some successful and some not,
     imaginations to help guide them.                         could come right out of science fiction:

                 by Jeff Pundyk Illustration by Toma Vagner

                                                                                  TECHONOMY _ 2018
ST R AT E GY                                                           11

Google Glass and other augment-           military is chiefly fighting “opera-     The session was led by sci-fi writers
ed-reality glasses, a balloon-based       tions other than war,” it is critical    who created a comic-book vision of
internet service, driverless cars, an     to reward creative thinking and          the future meant to inspire Lowe’s
ambitious neural network, and even a      new ideas, he told a roomful of West     executives.
life extension project.                   Point cadets earlier this year.             Leiter says executives have always
   “Great strategists dream about the        And, of course, science fiction       had to be futurists, but now technolo-
future as part of their job,” says Mark   does come to life. Customers at select   gy is in the foreground of every strat-
Leiter, a consultant and the former       Lowe’s hardware and home equip-          egy debate. He recently interviewed
chief strategy officer for Nielsen.       ment stores, for example, can now        45 fellow chief strategy officers in the
“Their nightstand is stacked high         enter the Holoroom, like something       course of writing a book about strategy
with books by futurists and science       out of the sci-fi thriller Minority      as business moves at breakneck speed.
fiction writers. Strategy is where        Report. Its purpose is a bit more           “Many executives don’t feel they
fiction meets nonfiction. We now just     prosaic, though; Lowe’s interactive      are futurists,” he says. “Yet when
assume science fiction becomes real       system aims to teach DIY skills to       the future arrives, they are rarely
faster than we imagine.”                  home remodelers and tinkerers. The       surprised.”
   Science fiction-style storytelling,    virtual reality tool emerged from           Science fiction master Arthur
Cooper says, can relieve the fear         a Lowe’s strategy session aimed at       C. Clarke famously said that “any
of change—or at least animate the         addressing a big opportunity: how        sufficiently advanced technology is
inevitability of change in ways that      to win a piece of what the compa-        indistinguishable from magic.”
are engaging. That’s why Max Brooks,      ny calculates is $70 billion in lost        Perhaps, but Clarke also knew that
the author of the zombie novel World      spending when people reject a home       with a little imagination we can make
War Z, lectures at West Point’s Modern    improvement project because they         a pretty good guess at what that next
War Institute. In a time when the U.S.    cannot imagine how it will turn out.     trick will be. ●

                                           From roofing to building materials, from waterproofing to
                                           aggregates, people around the world depend on Standard’s
                                           products to protect what matters most in their daily lives.
12                                                  T EC H O N O M Y N YC

1

                                                                                                                    5
                                               3

                                                                                               4

                                                    2

         1. “Create your own opportu-      3. “[Airbnb is] taking a big         4. “We have made a world
         nities. Don’t wait for opportu-   commitment and making a              that is wealthy and a world
         nities to be handed to you.”      big pledge to house 100,000          that is really teched up, and
         ANJALI SUD, CEO, Vimeo            displaced people over the            we’re destroying the planet.”
                                           next five years.”                    JEFFREY SACHS, Director,
         2. “I’m going to start            KIM RUBEY, Global Head of            Center for Sustainable Devel-
         again…I’m not going to go         Social Impact and Philanthropy,      opment, Columbia University
         into voluntary or involuntary     Airbnb
         retirement.”                                                           5. “If you’re in San Francisco
         MARTIN SORRELL , S4 Capital                                            or Silicon Valley, you should
                                                                                try to get a U-Haul…They’ve
                                                                                created a culture and a soci-
                                                                                ety that frankly isn’t open. It’s
                                                                                far too expensive, and it’s not
                                                                                what the future is going to
                                                                                look like.”
         More at Techonomy.com                                                  AMY NELSON, CEO, Venture for
         See more about the                                                     America
         conference including video at
         techonomy.com/nyc18

                                                                                             TECHONOMY _ 2018
T EC H O N O M Y N YC                                        13

                                                                              7

                                                                                                  8
                                                                              6

                             6. “No one should be above       7. “I think we should all worry         8. ”What I try to do is decon-
                             the law—no individual, no        when a single company                   struct that myth that you get
                             government, no company.”         effectively owns the public             to have it all, all at once.”
                             BRAD SMITH, President and        square of the 21st century.”            GINA HADLEY, Co-Founder,
                             Chief Legal Officer, Microsoft   CHRIS HUGHES, Co-Founder,               The Second Shift (which helps
                                                              Economic Security Project               executive women re-enter the
                                                              (and Facebook co-founder)               economy for part-time and
                                                                                                      temporary work)

                             Voices on Tech,
PHOTOS: REBECCA GREENFIELD

                             Business, and Society
                             at Techonomy NYC 2018
                             TECHONOMY _ 2018
Offstage at
    14

                                                              Techonomy NYC
                                               Some of the best conversations are impromptu

                                               Author Rich Benjamin moderated
T E C H O N O M Y N Y C , M AY 2 0 1 8

                                               two sessions. Attendees joined
                                               speakers for an evening reception.

                                                                                    Techonomy.com
                                                                                     See more about the
                                                                                    conference including
                                                                                    video at techonomy.
                                                                                         com/nyc18
                                                                                                           PHOTOS: REBECCA GREENFIELD

                                         Conference host David Kirkpatrick talks
                                         leadership with Johnson & Johnson’s                                                            Healthcare expert Will Greene (foreground)
                                         Lowinn Kibbey at the speaker dinner.                                                           contributes frequently to Techonomy from
                                                                                                                                        his base in Singapore. He traveled across
                                                                                                                                        the world to participate in Techonomy NYC.

                                                                                                                                                              TECHONOMY _ 2018
15

                                                                  Advertising pioneer Martin Sorrell chats
                                                                  during a break with Merit Janow, dean of
                                                                  Columbia’s School of International and
                                                                  Public Affairs.

                                                                                                                  T E C H O N O M Y N Y C , M AY 2 0 1 8
                                       SELFIE: LER ATO MOTSAMAI

Petrolink’s Lerato Motsamai snaps
a selfie with presidential candidate
Andrew Yang. The result is at right.
Yang’s campaign centers around
providing for displaced workers in
an automated age.

TECHONOMY _ 2018
16

     TECHONOMY _ 2018
17

NEVER BEFORE HAS ONE COMPANY’S                aggregating more power globally.       as so critical to the future of my
managerial failure had such a                 This is a very profitable company.”    country. It is intertwined with
devastating impact on the world.                 Facebook received repeated          elections and democracy. It is the
Facebook’s presence is truly                  warnings for at least six years        primary driver of news and infor-
global, as are the consequences               from informed observers around         mation. It has no equal here.”
of its failure to anticipate how its          the world that things were going           There is tragedy and irony in
platform could be misused and                 wrong. But it mostly disregarded       this company’s history. Face-
abused. But never before, either,             them. Gaining more users in            book empowers those who use
has a single company been asked               any and all geographies was the        it. That’s why so many of us
to fix a global political problem.            company’s overarching priority,        found its emergence heartening.
   Racists, autocrats, and purvey-            and it succeeded. The service has      (I wrote a generally laudatory
ors of hate have found Facebook               grown at an incredible pace. It is     history in 2010, entitled The
the perfect medium for peddling               now a dominant medium of com-          Facebook Effect.) But the compa-
poison, normalizing it, and                   munications, typically the most        ny’s leaders—particularly its
gaining adherents. Facebook is                dominant, in about 190 countries.      all-powerful leader Mark Zucker-
a broadcast platform for anyone,                 It expanded at full tilt into in-   berg—have been so enamored of
including those who would break               numerable areas where it lacked        how it gave ordinary people new
the rules, fake the news, lie, and            local expertise. But how could         tools and contributed to building
mislead the community. Societies              it possibly ensure its rules were      communities that they over-
around the world are reeling from             being followed when nobody at          looked how much it also could
the consequences. Politics and                the company spoke the local lan-       undermine or even destroy those
democracy are under duress. And               guage or understood the nuances        communities. The company badly
thus far, Facebook does not have              of the local culture? It couldn’t.     underestimated what it would
an effective way to fight back.                  Yet Facebook suddenly became        take to govern a “community” of
   What mystifies many is why                 what amounts to the global town        2.25 billion people. Facebook does
Facebook did not act sooner. “I               square. Sanjana Hattotuwa,             engender connection, friendship,
am disappointed in how slowly                 a longtime human rights and            community building, and user
they acted,” says Wael Ghonim,                digital activist based in Colombo,     empowerment for billions. But
the Egyptian citizen who, as a                Sri Lanka, is appalled at Face-        that does not reduce the gravity of
Google employee, helped catalyze              book’s persistent failures, which      the disastrous epidemic of misuse.
the Facebook-driven revolt there              have periodically led to chaos             Finally, this year, Facebook
during the Arab Spring in 2011.               and bloodshed in his country.          recognized just how badly its
“They should have been paying                 But, he says, “I remain engaged        platform was being abused by
more attention as their system was            with Facebook because I see it         evil politicians and the worst

                                              facing
                                              facebook’s
                                              failure
by David Kirkpatrick         Illustration by Mike McQuade

TECHONOMY _ 2018
18                                                        FA C E B O O K ’ S FA I L U R E

     kind of rabble-rousers. The company           had zero—zero— oversight capability        Hattotuwa. “I get fucking pissed
     insists it is going all out to remedy         on the platform in my language. I          off when Sheryl Sandberg and the
     the weaknesses it has identified and          started telling them that back then.”      company constantly repeat that they
     improve oversight. Activists en-                 But Facebook didn’t listen, even        were slow to respond. That suggests
     gaged in countering online hate and           as Hattotuwa and the Centre for            they had identified the problem and
     disinformation mostly agree that it is        Policy Alternatives where he worked        for some reason did not do what they
     trying hard to address the problems.          began periodically issuing well-doc-       should have. But I saw no response at
     But nobody except Mark Zuckerberg             umented and detailed formal reports        all until this past March. That to me is
     and Sheryl Sandberg seems to believe          about system abuses. One in 2013           a moral failure.”
     the measures being adopted now are            was on Islamophobia, a second in              Asked about Hattotuwa saying
     sufficient.                                   2014 on extreme nationalism, and a         Facebook didn’t remove the call to kill
        Facebook only finally began admit-         third in 2015 on Facebook’s negative       mothers and babies, Debbie Frost, who
     ting there was a serious problem after        impact on Sri Lankan elections. “We        for over a decade has headed Facebook
     the U.S. presidential elections, and          never heard back from the company,”        communications and public affairs
     even then only reluctantly, and slowly.       Hattotuwa says. He was not alone           outside the United States, acknowl-
     The public heat grew unbearable once          in raising warnings. Other activists       edged the company’s failure. “I can’t
     it became clear that false Russian            and experts in Vietnam, the Philip-        explain that to you,” she says. “I wish
     government-sponsored propaganda               pines, India, the Balkans, and Mexico,     we had done a better job and not been
     and paid advertising on Facebook had          among other places, were warning           so slow and had paid closer attention.
     flowed unimpeded, and may have even           that Facebook was being weaponized.        He’s exactly right. Only recently have
     helped alter the election’s outcome.          “It was like giving knives to toddlers,”   we been deploying the full weight of
     (The new book Cyberwar: How Russian           says Hattotuwa.                            our integrity efforts to do a better job.”
     Hackers and Trolls Helped Elect a President      Over time, he says, the company’s          Sri Lanka was particularly vul-
     makes this argument.) The scrutiny            response actually became worse             nerable to voices of hate because of a
     of Congressional investigations,              than nothing. By 2018 Facebook had         history of ethnic division and a horrif-
     hearings, and the probing of Special          finally hired at least some moderators     ic recent civil war. But its experience
     Counsel Robert Mueller forced the             in Sinhala, the language of the mostly     was not unique. In Myanmar, India,
     company to pay attention.                     Buddhist people who constitute             and Indonesia there have also been
        For all that, Facebook’s public rhet-       Sri Lanka’s majority. But they were       repeated incidents of ethnic violence
     oric has up until recently implied that       not doing their job. A series of false     and killings encouraged by incendi-
     this was primarily a U.S. problem.            and incendiary posts on Facebook           ary and dishonest posts on Facebook.
     In fact, it is a momentous crisis in          demonized the country’s Muslim mi-            And Facebook’s ungoverned
     just about every country. The service         nority and helped precipitate a hor-       platform has harmed society in
     is being manipulated by evildoers             rific outbreak of ethnic fighting. “At     another disturbing and parallel way.
     in many of the 133 languages in               the height of the violence, a Facebook     In country after country, dishonest,
     which the service operates. In many           post called for a pregnant mother to       corrupt, and anti-democratic political
     less-affluent countries a gigantic            be killed—it was very explicit—‘cut        parties and leaders have been coming
     number have come onto the inter-              open her womb and kill her unborn          to the fore, with few scruples about
     net for the first time only recently,         children like dogs,’” says Hattotuwa.      using any means to gain and retain
     on mobile phones, and are naively             “We complained, and Facebook got           power. People like Recep Erdogan in
     credulous when faced with digital             back a couple of days later and said it    Turkey, Rodrigo Duterte in the Phil-
     fiction. Facebook’s future growth will        was perfectly fine. That said to us that   ippines, Viktor Orban in Hungary,
     be greatest among the inexperienced           not only was the company’s oversight       and ultra-right or neo-fascist leaders
     and previously disconnected. (See             insufficient, but that its moderators      in Poland, Slovenia, Austria, and
     story on page 21.)                            were themselves racist.”                   elsewhere all are aggressive users of
        Hattotuwa has been involved                   Only when Hattotuwa and other           Facebook, both in the electoral fray
     in both human rights and internet             activists in Sri Lanka and other           and once in office. Using both paid
     issues ever since he set up the first         countries wrote a series of open           advertising and unceasing propagan-
     Facebook page in South Asia devoted           letters to Mark Zuckerberg in the          da posts, such leaders and parties use
     to media, in 2007. “But after the             spring of 2018, at the time of the U.S.    Facebook to advance their agenda,
     civil war in Sri Lanka ended, around          congressional hearings, did Facebook       slander opponents, and typically seek
     2012,” he says, “people began coming          finally respond. “The company did          to whip up a nationalist frenzy.
     onto the platform and using it to pro-        not want to look at what was happen-          To the company’s credit, it does not
     mote hate and harm. The company               ing beyond user growth,” continues         deny it has done a poor job prevent-

                                                                                                                  TECHONOMY _ 2018
FA C E B O O K ’ S FA I L U R E                                                   19

ing abuse. Facebook spokesperson              But for all the progress, Facebook’s      everything at Facebook to be on top
Frost spent over an hour on the phone       excessive caution in admitting mis-         of all the content issues and security
being confronted with many of these         takes and taking aggressive remedies        issues.” The reality is that given the
points. She did not argue. “I accept        has become a problem in itself, which       resourcefulness of miscreants, this
everything you’ve said. We can only         undermines its credibility and raises       will never be solved, which even he
move forward and move quickly,” she                                                     came close to admitting.
said. “There were gaps in our offering            Abuse on                                 Zuckerberg, as I know from numer-
that made it very difficult for people                                                  ous and extensive interviews with him
to understand our rules, for them to            Facebook has                            since 2006, is meticulous and method-
report things, and for us to effectively
deal with the reports.”
                                                  created a                             ical, and not prone to looking back at
                                                                                        errors. Rather, he focuses on what’s
    Facebook is now hiring more con-
tent reviewers, especially in countries
                                                 momentous                              next. The evidence suggests he is
                                                                                        putting this effort as a top priority. But
where oversight failures until now               crisis in just                         to continue battling the problems with
have been grievous, like Sri Lanka and
Myanmar. It has embarked on new                  about every                            necessary urgency will be extreme-
                                                                                        ly expensive, and almost certainly
ways to promote digital literacy and
to educate users about the platform’s
                                                   country.                             continue to reduce company earnings.
                                                                                        Luckily for Facebook, advertisers still
policies. (Previously, it hadn’t even                                                   have no better medium to target their
had its community standards trans-          serious questions about how fast            messages at consumers. It will likely
lated into many languages until years       problems can be resolved. In her Sep-       remain extremely profitable for some
after use took off in those regions.) It    tember testimony to the Senate Intel-       time to come.
has committed to increasing the num-        ligence Committee, Sandberg bragged            The last 150 years of global prog-
ber of Sinhalese-language moderators        about being able to combat fake news        ress towards universal democracy
in Sri Lanka sevenfold, though Hatto-       and hate speech in 50 languages. That       may be imperiled. But it’s not only
tuwa complains the company will not         sounds good, except that Facebook           Facebook’s fault. And the company
give his group their number, location,      users speak 133 languages. The com-         can’t fix the problems alone. Karen
or even gender. In Sri Lanka, it tempo-     pany’s own initial reports suggested        Kornbluh served as U.S. ambassador
rarily put its “community standards”        that only 10 million Americans had          to the Organization for Economic Co-
at the top of every single user’s news      seen fake Russian campaign ads and          operation and Development (OECD)
feed, in three languages. In Myanmar        disinformation about the presiden-          under President Barack Obama and
it created a cartoon-style version of the   tial election. It later upped the figure    is now senior fellow for digital policy
standards for people with low literacy.     to 126 million. In Sri Lanka, it only       at the Council on Foreign Relations.
It’s taken similar measures in the          responded to repeated complaints            “The leaders of Facebook are being
Philippines. To the extent that these       about its role in ethnic violence in ear-   asked by the market to generate
help, it may deploy them in countries       ly 2018 after the government actually       growth and profits,” Kornbluh ex-
and languages around the world.             turned off the service in the entire        plains, “but so far there’s no clear
    The company has made it easier to       country. In Myanmar, it removed the         ask from society or government to
report abuse and to get a response. In      ruling general’s Facebook account           do anything different. Their motto
Facebook Messenger in Myanmar, for          for promoting ethnic hatred, but only       of ‘move fast and break things’ made
example, the company made it possi-         after the United Nations had issued a       sense for an internet that was a tiny
ble for the first time to report abusive    series of scathing reports and recom-       piece of the economy and society. But
group messages directly inside the          mended the general be prosecuted at         when our whole lives moved online,
service. For political advertising, it      the International Criminal Court.           we needed to have a societal conversa-
has in several countries introduced            And some of Zuckerberg’s own             tion. And we didn’t have that. Shame
new transparency requirements               claims have smacked of naivete, even        on all of us. So the question, really,
that make clear who placed the ads.         self-congratulation. He has enormous        is what is society going to do?” Let’s
It has increased security for political     confidence in the powers of artificial      hope civil society, government, the
pages. And it has set up what it calls      intelligence to help govern speech          tech industry, and Facebook can all
a “war room,” so engineers and other        and prevent abuse, and let’s hope he’s      come together to find an answer.
employees at the company’s head-            right. But in a July interview with
quarters in Menlo Park, California,         Kara Swisher of Recode, he suggested        DAVID KIRKPATRICK is
can monitor and protect electoral           that by the end of 2019 the company         Techonomy’s editor-in-chief, and author
campaigns around the world.                 will have been able to “fully retool        of The Facebook Effect.

TECHONOMY _ 2018
20                                                      FA C E B O O K ’ S FA I L U R E

                                        One Human Rights Campaign’s
                                            Social Media Struggles
                                                         by Kambiz Foroohar

     RIGHTS ACTIVISTS AROUND THE WORLD           Facebook, has become the biggest civil        track down women and arrest them.
     who use social media are frequently         disobedience campaign in the Islamic          (The identity of posters on the real
     on the receiving end of propaganda          Republic’s history. Within two weeks it       page is carefully protected.) Facebook
     campaigns, designed in most cases           had 200,000 followers. A month later          employees took action only when we
     by repressive governments to spread         it had attracted half a million, amid         argued that copycat pages were violat-
     misinformation, divert attention, and       global media coverage. But nobody in-         ing our copyright.
     undermine support. I serve as a media       side Facebook knew anything about it.            Finally, following repeated requests,
     advisor to one of the biggest such cam-        Almost immediately, the Islamic            Facebook awarded MSF its blue tick of
     paigns in Iran, and our painful experi-     Republic hit back. Within days of the         authenticity, indicating the site had
     ence illuminates the harsh challenges.      campaign’s launch, a Facebook page            been validated by the company. That
        The Islamic Republic of Iran is one of   affiliated with the government pub-           took care of the copycats. And to deal
     the most prolific promoters of shad-        lished a post which said Masih Alinejad       with the now-daily cyberattacks and
     owy groups and an expert at creating        had been raped in London after disrob-        spam campaigns against the page,
     fake sites. Some of these groups are        ing in public. It was “fake news,” meant      Facebook assigned a dedicated moder-
     controlled by the country’s intelligence    to shame Alinejad and warn other              ator and contact person.
     services and the Iranian Revolutionary      women against joining her campaign.              We also had to deal with several
     Guards.                                        But it was not easy to figure out how      Facebook pages created with the ex-
        My Stealthy Freedom (MSF), the           to complain to Facebook about this            press aim of identifying the protesting
     group I advise, is an Iranian women’s       violation of its rules. Eventually, we sent   women, threatening them with arrest,
     rights campaign against compulsory          an email to Facebook support. Face-           and worse. Some even encouraged
     hijab laws. It is a thorn in the side of    book dismissed the complaint, arguing         acid attacks against them. Still, the
     the Islamic Republic and has been           that it was a freedom of speech issue.        campaign continued to grow. Its real
     the victim of sustained cyberattacks,          Soon fake pages also emerged that          strength was women inside Iran who
     hoaxes, misinformation and abuse for        pretended to be MSF. As the popularity        were not scared of these tactics. Every
                                                                                               morning, an activist would search
                                                                                               Facebook for fake accounts, report
                                                                                               them, and ensure they were deleted.
                                                                                                  But the Islamic Republic’s operatives
                                                                                               are a creative bunch. One new tactic
                                                                                               was to bombard a post with thou-
                                                                                               sands of spam comments from stolen
                                                                                               identities. It was bizarre reading the
                                                                                               same comment, often in Persian, over
                                                                                               and over from accounts in Colombia,
                                                                                               Argentina, China, and Singapore. It
                                                                                               took Facebook engineers months to
                                                                                               stop such attacks.
                                                                                                  By mid-2016, MSF’s Instagram
                                                                                               account began to take off after both
                                                                                               Facebook and Twitter were blocked
                                                                                               inside Iran. Once again, Alinejad faced
     Iranian women post pictures of              of the MSF Facebook page grew, so did         spam attacks and misinformation
     themselves without headscarves on           the number of copycat pages created           campaigns from pages devoted to the
     the My Stealthy Freedom facebook            by supporters of the regime. Some             fake rape story. Some of our Instagram
     page.                                       mixed in pornographic photographs;            videos received as many 12 million views
                                                 others copied all the photos from the         and more than 10,000 comments.
     the past four years.                        authentic page in order to siphon off         Monitoring all of them became difficult.
        MSF was created in May 2014 by jour-     members and induce people to upload           Luckily Instagram, which is owned by
     nalist and campaigner Masih Alinejad.       photos to those pages instead.                Facebook, also provided dedicated
     Since the Iranian Revolution, the Islamic      When we complained, Facebook               engineers to respond to issues.
     Republic’s compulsory hijab laws have       again argued against deleting the                Other social media sites have been
     required women to always cover their        copycat and fake accounts. We tried to        less helpful. On Twitter, it is almost
     hair. MSF calls on women to show their      explain that the fake accounts posed a        impossible to reach a real human to
     opposition to those laws by sending or      security risk to women who sent them          resolve issues. And for the past few
     posting photographs of themselves in        their photographs, thinking it was the        months, the campaign’s posts have
     public without a headscarf.                 real page. The operators of those pag-        often not been visible to supporters.
        The campaign, which started on           es—the government or its allies—could            But the women of MSF will not be

                                                                                                                  TECHONOMY _ 2018
FA C E B O O K ’ S FA I L U R E                                                                      21

deterred—and understand the power            forced three Iranian ministers to issue an                               “#AyatollahYoutube” on Twitter.
of social media. Last April, four female     apology. The video was reposted by multi-                                We contacted other activists and
university students celebrating their        ple news organization around the world.                                  #AyatollahYoutube became a
graduations were attacked by Iranian            Soon, YouTube removed the video                                       trending hashtag. Within hours,
morality police operatives. One of the       and issued an email warning to Alinejad                                  YouTube unblocked the video.
students filmed the attack on her mobile     that she had violated the site’s rules.
phone and sent it to the campaign. After     We desperately tried to reach out to the                                 KAMBIZ FOROOHAR is a longtime
Alinejad posted it on YouTube, the video     company, but it was impossible to reach                                  journalist and a media adviser for the
received more than 5 million views. That     a human. So, we created the hashtag                                      My Stealthy Freedom campaign.

                                 Five Ways for Facebook to Help its
                                         Next Billion Users
                                                              By Bhaskar Chakravorti

AFTER A GREAT RISE, GRAVITY MAY              other “light” features—Instant Articles,                                 Lanka, Facebook was similarly slow to
have caught up with Facebook. Despite        with 10 times faster loading times than                                  remove content and ban users when its
sizzling growth and 2.5 billion users        standard articles. Instagram Lite and                                    platform was used to organize violence
across all its services, it has recently     Messenger Lite are also designed for                                     against Muslims.
had to grapple with concerns about           places with weak data connections and                                       Facebook-owned messaging app
misinformation, the safety of user data,     low-bandwidth networks.                                                  WhatsApp has been the primary carrier
and scrutiny around its leadership.             Despite these strategic moves, Face-                                  of fake news and divisive rumors in
   Embedded in its still stratospheric       book has struggled with socio-cultural                                   India. Recently, India has experienced a
valuation is the stock market’s expec-       and political nuances in these coun-                                     spate of lynchings instigated by rumors
tation for continued growth. But such        tries. But despite some fumbles, Free                                    spread over WhatsApp. For months,
growth isn’t coming from the U.S. and        Basics has expanded into 63 countries                                    Facebook did nothing other than make
Europe. At the Fletcher School at Tufts,     and municipalities, covering more than                                   small tweaks.
where I teach, we call that the “Digital     100 million new users.                                                      Facebook needs a proactive, con-
North.” The emerging Asian, African,            The biggest contextual challenge                                      text-aware strategy for tackling the
and Latin American markets, the “Dig-        in the Digital South is that Facebook                                    mushrooming fake news problem in the
ital South,” will instead be the source      becomes a de facto carrier of rumors                                     Digital South. Here are five suggestions:
of Facebook’s growth. Users here not         and misinformation, which come at a
only spend more time on the mobile           heavy human cost. Rumor campaigns                                        1. Own the reality of its own success:
internet, but an average user spends         targeting the Rohingyas in Myanmar                                       Facebook with its family of apps is
more time on social media than one in        were spread on Facebook, spark-                                          an opinion shaper and de facto news
the Digital North—almost 4 hours a day       ing violence. (See story pg 16.) In Sri                                  source—and increasingly so in the
in the Philippines, for example, versus                                                                               Digital South. It has outlived its original
48 minutes in Japan.                                                                                                  role as a “public square.” As an influ-
   Of the top 10 countries with the                                                                                   ential media company, it must take
most Facebook users, eight are in the          FACEBOOK’S FUTURE IS IN THE                                            responsibility for the content it carries.
Digital South, accounting for 41 percent            “DIGITAL SOUTH”                                                   It can combine both human and
of users worldwide. Facebook’s North                                                                                  artificial intelligence to sort through
American and European revenues in                                                                                     the content, classify, and filter it. It
the last quarter fell $75 million relative              Daily active user growth in the                               should partner with grassroots orga-
to the same quarter in 2017, while                      past year                                                     nizations around the world dedicated
revenue from other markets rose $51                                                                                   to local fact-checking. Examples from
                                                        Q2 2018 vs. Q2 2017
million. North America and Europe                                                                                     India alone include Altnews.in,
accounted for only 4 percent of daily                                                                                 SM Hoax Slayer, and Check4Spam.com,
active user growth over that period,                                                                                  each dedicated to de-bunking rumors
while Asia-Pacific and non-Western                                          +21%                                      and stopping misinformation. It is
markets accounted for 31 percent of                                                                                   currently labeling WhatsApp mes-
                                                                                                  Rest of the World

daily active user growth.                                                                                             sages as “forwarded” or “suspicious”.
                                                US & Canada

                                                                            Asia-Pacific

   Facebook’s Digital South strategy                                                                                  But it needs to go beyond such subtle
thus far has focused on access. To                                                         +10%                       markers. Eventually, Facebook must
                                                                   Europe

close the connectivity gap, it launched                                                                               develop transparent policy guidelines to
the Free Basics initiative aimed at                                                                                   label, de-prioritize, even block, different
developing world users. It extends free                           +3%                                                 categories of content.
internet access through a stripped-            +1%
down mobile application, including a                                                                                  2. Establish on-the-ground operations:
version of Facebook. Its Facebook Lite       Source: Facebook via Statista                                            Facebook had no formal offices in
product uses less data and pairs with                                                                                 Myanmar or Sri Lanka. CONTINUED PAGE 37

TECHONOMY _ 2018
22

CO OKIE
 T H AT
ATHE
  TE EARLY WEB ENGINEERS THOUGHT A
     BROWSER “COOKIE” WOULD BE A SIMPLE AND
     FRIENDLY WAY FOR SITES TO KNOW
     YOU HAD RETURNED. THEY MISCALCULATED.
            by Janet Guyon   Illustration by
                             Giacomo Bagnara
TOXIC CO OKIES   23

E
    TECHONOMY _ 2018
24                                                        TOXIC CO OKIES

     BACK IN THE LATE 1990S, MANY OF            wonders if he should have seen it all    Montulli, who would later be granted
     us felt a thrill when a website first      coming. Lou Montulli was 23 years        a patent for his idea. (His employer,
     welcomed us back by name. Until            old in 1994 and working on what          Netscape, actually owned the patent
     then, every time we went to a site we      would later become the Netscape          and never collected royalties.) “Prior
     previously visited, we’d have to tell      browser. He came up with what he         to cookies, the web had no method
     it all over again who we were and go       thought was a pretty good idea. He       of remembering a user at all, with
     through the tedious task of logging        had recently moved to Northern Cali-     the exception of logging in again
     in. Like a waiter who can’t recall         fornia from the University of Kansas,    directly.”
     who ordered the omelet, the internet       where he had created a pre-Netscape         Montulli and the Netscape crew
     back then had no memory of who did         browser called Lynx while working        considered a few other ways to give
     what. Sites had no way to know you         at the university’s computer center.     websites memory, but all had signifi-
     were a returning visitor, or even to       As a founding engineer at Netscape,      cantly more ability to track a user
     record when you visited another one        he was charged in the summer of          across the entire World Wide Web,
     of its many pages.                         1994 with figuring out a way for         which they wanted to avoid. “Cookies
        Behind those first messages of          websites to remember information         were designed to prevent tracking,
     “Welcome” was a tiny piece of invisi-      about visitors who had previously        because only the originating website
     ble text, no more than a few hundred       visited them. The main problem was       can set and receive that cookie,” says
     characters long. Your web browser          how to create a shopping cart on the     Montulli, who now runs JetInsight,
     could see it, but you couldn’t. It         web, a place where you could keep        an aircraft software company.
     was called a “cookie.” Its job was to      adding stuff you wanted to buy after        What none of the early browser
     remember whether you had previ-            choosing the first item.                 inventors foresaw, however, was the
     ously visited so you wouldn’t have            Montulli came up with the cookie.     ability of other websites and services
     to bother logging in all over again. It    It was just a small piece of text        to insert their own cookies into a
     was initially designed to maintain         downloaded to your browser when          browser whenever someone visited
     your privacy and your security; that       you visited a particular website. Like   a specific website or viewed specific
     little bit of text wasn’t software code    a ticket from a coat check, it would     content. Partly that’s because the way
     and it didn’t know your name or            identify you when you returned.          the web works now is very different.
     what you did elsewhere on the web.         It could recall what pages you had       Webpages today are created not just
     It just knew that the browser in your      already seen or what products you’d      by accessing a single server, but by
     computer had once visited that par-        already decided to buy. But the cookie   drawing material from many differ-
     ticular website, so it could be referred   in effect introduced and enabled the     ent servers to assemble what looks to
     to if you returned.                        idea of recording “web sessions,” or     the user like one page.
        That humble computer cookie             the period of time you spend on a           Early on, the advertising commu-
     has today morphed into something           particular website. That concept has     nity deduced that when a webpage
     far more ubiquitous, capable, and          now become essential to the way the      loaded on a user’s computer, a
     nefarious. It now sits at the center       entire web works.                        separately operated server that put
     of a multibillion-dollar digital ad           “What we were trying to do was        ads on that page could also insert a
     industry that has blanketed the            support a variety of applications, one   cookie on the user’s browser. “It was
     world. Massive worries have emerged        of which was the shopping cart,” says    natural to say, ‘Why don’t we make
     around the world about what that                                                    the ad server use the cookie?’” says
     means. Use of this tool is dominated                                                Dave Morgan, a New York-based en-
     by a few tech giants whose behavior
     has become the cause of rising con-
                                                    The humble                           trepreneur who founded RealMedia,
                                                                                         one of the first companies to develop
     cern over personal privacy, security,            browser                            software that placed ads on websites.
     and more.
        The cookie is the enabler of a grand
                                                     cookie has                             If the ad server could identify a
                                                                                         specific user—or rather, that user’s
     bargain we all make: free access to
     the web in return for our eyeballs on
                                                  morphed into                           computer and browser software—us-
                                                                                         ing a cookie, it could personalize the
     often highly targeted advertising. Yet      something more                          ads. But the ad server also needed to
     the data collection and analytics that
     this once-modest tool now enables              ubiquitous,                          know on which sites users saw its
                                                                                         ads. To do that, it exploited an exist-
     could end up threatening the future
     of democracy itself.
                                                   capable, and                          ing piece of code called the “referer
                                                                                         header” (the name had been mis-
        The man who invented the cookie              nefarious.                          spelled by early web coders), which

                                                                                                            TECHONOMY _ 2018
TOXIC CO OKIES                                                               25

                                                                                     edented access to troves of data on
                                                                                     consumer behavior, as well as control
                                                                                     over a huge chunk of the web’s $200
                                                                                     billion in advertising inventory. As
                                                                                     one Federal Trade Commissioner
                                                                                     who objected to the merger put it at
                                                                                     the time, Google obtained “a massive
                                                                                     database of desires, needs, wants,
                                                                                     and likes that can be discovered,
                                                                                     subpoenaed, archived, tracked, and
                                                                                     exploited to all sorts of ends.”
                                                                                        Facebook similarly has gained
                                                                                     enormous power to monitor user
                                                                                     behavior. It has 2.25 billion users
                                                                                     around the globe who have
                                                                                     voluntarily given it in most cases
                                                                                     their names, locations, likes, dislikes,
                                                                                     job titles, photographs, ages, and
                                                                                     personal history, as well as insight into
                                                                                     their browsing history on Facebook.
                                                                                        But the social networking and
                                                                                     media colossus doesn’t just know
                                                                                     what you look at on Facebook. It can
could identify the site on which an ad    for the development of advertising         see what you do on as many as 11 mil-
had landed.                               specifically targeted at all of us, the    lion other websites around the world.
   The referer header sat in the          unsuspecting web surfers.                  That’s because so many of them allow
browser, part of the network protocol        Behind the systems that managed         you to “login with Facebook” or carry
used by web browsers and servers to       ad-based cookies were giant databases      Facebook’s “Like” button. It contains
transfer information. Ad servers sent     that also tracked websites and con-        code, or a pixel, that, along with its
requests for referer headers when         tent. Cookies correlated with technol-     third-party cookie, can tell what you
they sent cookies, thus figuring out      ogy that could tell what content users     are looking at. “People don’t under-
on which originating site users saw       saw, or which items they searched for,     stand that because all these ‘Like’
specific ads.                             enabled the ad community to develop        buttons are everywhere, they are
   Pretty soon, the many servers that     those ubiquitous ads that follow you       being tracked when they are not on
delivered content to a webpage began      around as you go from site to site.        Facebook,” says Morgan.
to also load cookies to track users,      When you visit The New York Times’            “Facebook is a machine like noth-
target ads and generally observe          automotive section, for instance, you      ing else ever created,” John Sculley,
behavior. The simplicity of the cookie    might also be served ads for cars, or      the former CEO of Apple, told CNBC
protocol “created the ability to create   even be told that you are 23.5 miles       in March 2018. “It is a beautiful
a lot of cookies,” says Morgan. Com-      from the nearest dealer. If that ad is     model for selling ads.” Its vast data
bined with other web technologies,        served by an ad network, it can follow     pool, however, has also made it, he
so-called “third party cookies” could     you to the next site you visit.            said, into a “computational propa-
track users even if they weren’t on          By the millennium, one of the           ganda” machine that allows others
the originating website. “Companies       world’s first big adtech firms, Double-    to “manipulate public opinion.”
figured out how to game the system,”      Click, founded in 1996, was serving        It is as if, during the pre-internet
is how Montulli puts it.                  up cookies that tracked visits to the      era, the phone company used your
   As ad networks grew and consol-        millions of websites that used its         calling patterns—where you placed
idated, they began buying, selling,       technology to display ads. Google,         calls, how long you talked, who you
and sharing information about the         which already placed its own cookies       chatted with, when you ordered new
users they had “cookied,” to use a        on a user’s computer to track their        goods—to sell ads to Russian bots
term that became widely used in           searches, bought DoubleClick in            that could also jump into your con-
the industry. That allowed them to        2007 for $3.1 billion, in a deal seen at   versations. (Facebook didn’t respond
build detailed profiles of individual     the time as a historic doubling down       to questions about its cookie and
web users, which became invaluable        on advertising. That gave it unprec-       tracking abilities.)

TECHONOMY _ 2018
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