🎮The Bulletin #37: Microsoft Acquires Activision, Australia Fines X, and the Future of AI's Potential
In this week's bulletin - Microsoft's $69 billion acquisition of Activision Blizzard, Australia's fine on X for failing to provide information for child abuse content, and how we may expect AI to grow
Hey everyone! I hope you all had a good weekend, whether it was spending some quality time with your parents, watching incredible performances or simply catching up on sleep 💤 Enjoy this week’s bulletin!🥰
👾Big Tech grows bigger
In a significant move, Microsoft has successfully closed its $69 billion acquisition of Activision Blizzard, despite facing opposition from federal authorities. This development sends a clear message that despite antitrust regulators’ best efforts— Big Tech can still get bigger. Over the past few years, antitrust regulators have used novel arguments to challenge these large corporations' deals, with mixed results.
This acquisition is noteworthy because it falls into the category of "vertical" transactions, involving firms that are not direct competitors. Such deals have traditionally faced fewer obstacles, as they are considered less likely to create monopolies. However, the tech industry has frequently employed vertical mergers to expand into new business areas, with companies like Meta and Apple making acquisitions to expand into new business lines.
This completion challenges the notion that such vertical mergers are inherently harmful to competition, a belief ingrained since the late 1970s.
Although the Federal Trade Commission (FTC) continues to contest the Microsoft-Activision deal, its closure underscores the idea that these transactions can proceed relatively smoothly. President Biden's antitrust officials, Lina Khan and Jonathan Kanter, have taken a more aggressive stance in challenging vertical mergers since their appointment in 2021.
Despite their efforts, many of their challenges have been rejected by judges due to a lack of evidence, preventing them from setting new legal precedents. This development may encourage larger companies to challenge regulatory opposition as part of the cost of doing business. Antitrust officials have expressed their readiness to take risks and accept losses in legal battles to push the boundaries of antitrust law and encourage legislative changes. ⚖️
🌏Australia fines X for failing to provide information on child abuse content
Australia recently announced a $384,000 fine against X, formerly known as Twitter, for its failure to provide information on its efforts to combat child exploitation. The move follows X's acknowledgment that its automated detection of abusive content had declined after Elon Musk's acquisition of the platform. This development sheds light on the growing scrutiny that tech companies face regarding child safety measures.
The fine is a result of X's non-compliance with an Australian national law requiring platforms to disclose their actions against child exploitation. Australian regulators had issued legal notices to several tech companies, including X, Google, Discord, TikTok, and Twitch, requesting details on their methods for detecting and removing child sexual abuse material.
X reported a decrease in its detection of child abuse material on the platform from 90% to 75% in the three months after Elon Musk's acquisition. However, they noted that the detection had since improved. While Google also failed to answer all the regulator's questions, it received a warning, while X faced a more extensive lack of response. X has the option to appeal the fine, and the company says that it remains committed to a "zero-tolerance policy" against child sexual abuse material. 📵
🤖The Future of AI’s Potential
In a recent essay by Thomas C. Redman in the Harvard Business Review, the excitement and potential surrounding AI, machine learning, and generative AI are examined, but with a note of caution. While these technologies hold immense promise, Redman suggests that realizing their potential will require concerted effort beyond technology alone.
Redman emphasizes that AI's journey won't be a sprint but a marathon. He notes that AI has faced waves of enthusiasm followed by periods of skepticism in the past, and caution is wise.
Three crucial aspects to consider in AI adoption are:
Data Quality: High-quality data is essential for AI's success, yet many organizations struggle to ensure their data meets these standards. Poor data quality can undermine AI projects.
Organizational Capabilities: Organizations need to integrate AI into their operations effectively. This requires a strategic approach to make AI a seamless part of business processes, rather than just an add-on.
Societal and Human Aspects: AI adoption requires careful consideration of societal implications and how AI and humans will coexist in the workplace. This includes issues like ethics, data privacy, and the impact on jobs.
Redman suggests that embracing AI fully demands commitment from senior leadership and concerted efforts in data quality, organizational readiness, and addressing societal and human considerations. AI is not a quick fix; it's a complex journey that requires comprehensive planning and execution.
As AI enthusiasts and innovators, it's essential to approach AI with a deep understanding of the challenges and to navigate the landscape with care and determination. It's not just about the technology; it's about the broader transformation that AI can bring. We look with anticipation to see where this new technology takes us.🚀
That’s it for this week, feel free to email me at zyn_yee_ang@brown.edu with any inquiries!
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