Wednesday, September 30, 2020

Indian startups explore forming an alliance and alternative app store to fight Google’s ‘monopoly’

Google, which reaches more internet users than any other firm in India and commands 99% of the nation’s smartphone market, has stumbled upon an odd challenge in the world’s second largest internet market: Scores of top local entrepreneurs.

Dozens of top startups and firms in India are working to form an alliance and toying with the idea of launching an app store to cut their reliance on Google, five people familiar with the matter told TechCrunch.

The list of entrepreneurs include high-profile names such as Vijay Shekhar Sharma, co-founder and chief executive of Paytm (India’s most valuable startup), Deep Kalra of travel ticketing firm MakeMyTrip, and executives from PolicyBazaar, Sharechat and many other firms.

The growing list of founders expressed deep concerns about Google’s “monopolistic” hold on India, and discussed what they alleged was unfair and inconsistent enforcement of Play Store’s guidelines in the country.

The conversations, which began in recent weeks, escalated on Tuesday after Google said that starting next year developers with an app on Google Play Store must give the company a cut of as much as 30% of several app-related payments.

Dozens of executives “from nearly every top startup and firm” in India attended a call on Tuesday to discuss the way forward, some of the people said, requesting anonymity. A 30% cut to Google is simply unfeasible, people on the call unanimously agreed.

Vishal Gondal, the founder of fitness startup GOQii, confirmed the talks to TechCrunch and said that an alternative app store would immensely help the Indian app ecosystem.

TechCrunch reached out to Paytm on Monday for comment and the startup declined the request.

In recent months, several major startups in India have also expressed disappointment over several of the existing industry bodies, which some say have failed to work on nurturing the local ecosystem.

The tension between some firms and Google became more public than ever late last month after the Android-maker reiterated Play Store’s gambling policy, sending a shockwave to scores of startups in the country that were hoping to cash in on the ongoing season of Indian Premier League cricket tournament.

Google temporarily pulled Paytm’s marquee app from the Play Store citing repeat violation of its Play Store policies. Disappointed by Google’s move, Paytm’s Sharma said in a TV interview, “This is the problem of India’s app ecosystem. So many founders have reached out to us… if we believe this country can build digital business, we must know that it is at somebody else’s hand to bless that business and not this country’s rules and regulations.”

Google has sent notices to several firms in India including Hotstar, TechCrunch reported last month. Indian newspaper Economic Times reported on Wednesday that the Mountain View giant had also sent warnings to food delivery startups Swiggy and Zomato.

Vivek Wadhwa, a Distinguished Fellow at Harvard Law School’s Labor and Worklife Program, lauded the banding of Indian entrepreneurs and likened Silicon Valley giants’ hold on India to the rising days of East India Company, which pillaged India. “Modern day tech companies pose a similar risk,” he told TechCrunch.

Some of the participating members are also hopeful that the government, which has urged the citizens in India to become self-reliant to revive the declining economy, would help their movement.

Other than its reach on Android, Google today also leads the mobile payments market in India, TechCrunch reported earlier this year.

The giant, which has backed a handful of startups in India and is a member of several Indian industry bodies, invested $4.5 billion in Mukesh Ambani’s telecom giant Jio Platforms earlier this year.

India’s richest man Ambani, who runs oil-to-retails giant Reliance Industries, is an ally of Indian Prime Minister Narendra Modi. Jio Platforms has attracted over $20 billion in investment from Google, Facebook, and 11 other high-profile investors this year.

The voluminous investment in Jio Platforms has puzzled many industry executives. “I see no business case for Facebook investing in Jio beyond saying we need regulatory help,” said Miten Sampat, a high-profile angel-investor on a podcast published Wednesday.

“This is a white-collar way of saying there is corruption involved, and if the government gets upset, I have invested somewhere with some friend of the government. All of us are losing at the benefit of one company,” he said. Sampat’s views are shared by many industry executives, though nobody has said it on record and in such clear terms.

Google said in July that it would work with Jio Platforms on low-cost Android smartphones. Jio Platforms is planning to launch as many as 200 million smartphones in the next three years, according to a pitch the telecom giant has made to several developers. Bloomberg first reported about Jio Platform’s smartphone production plans.

These smartphones, as is the case with nearly 40 million JioPhone feature phones in circulation today, will have an app store with only a few dozen apps, all vetted and approved by Jio, according to one developer who was pitched by Jio Platforms. An industry executive described Jio’s store as a walled-garden.

A possible viable option for startup founders is Indus OS, a Samsung-backed third-party store, which last month said it reaches over 100 million monthly active users. As of earlier this week, Paytm and other firms had not reached out to IndusOS, a person familiar with the matter said.



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Google's Pixel 5 Is Finally Here

After dropping official teaser images for the Pixel 5 and Pixel 4a 5G earlier this summer, today at its Launch Night In event Google has finally given us a full rundown on its newest Pixel phones.

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Google's Chromecast with Google TV is Its First Real Streaming Contender

For the better part of the last decade, Google’s Chromecast dongles were the company’s primary homegrown solution for streaming video to your TV. But with the recent explosion in streaming services, even the most sophisticated Chromecast wasn’t really cutting it anymore, which is something the new Chromecast with…

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Google’s Pixel 5 get reverse wireless charging and 5G for $699

Here it is, the centerpiece of this morning’s confusing-titled Launch Night In. The Pixel 5 is Google’s latest mobile flagship. Launching months after the budget-minded Pixel 4a (and same day as the Pixel 4a 5G) , the new handset sports a a 100% recycled aluminum body to set the new phone apart from the rest of the line. That’s coupled by 8GB of RAM and the addition of reverse wireless charging.

Reverse wireless charging is probably the most interesting hardware addition here — and the one that wasn’t leaked like crazy. The feature, which is already available on fellow Android devices like Samsung’s flagship, lets users charge devices (such as the newish and very good Pixel Buds) using the device’s on-board battery.

The specs are now live on the product page (where you can currently pre-order the device). As usual with Google mobile devices, basically all of the leaks proved true. There’s a 6-inch display with a hole punch selfie up top.

 

Inside, you get a Snapdragon 765G (which brings the 5G), coupled with 8GM of RAM and 128GB of storage. There’s also a healthy 4,000mAh battery on board, which addresses the single biggest issue with the Pixel 4 — though be aware that 5G connectivity can be a massive battery hog.

The product could pass for something mid-tier in most lines, and honestly, the line is fairly blurry between this product and the new 5G version of the 4a.

Image Credits: Google

There’s a single front-facing eight-megapixel camera and a 12-megapixel and 16-megapixel ultrawide on the back. As ever, though, the big camera advance come via software. New imagine features include Night Sight in Portrait Mode, Portrait Lighting to illuminate subjects and an improved editing tool in Google Photos.

It seems likely that this is the final device from Google that maintains that trend, courtesy of a recent shakeup of the department aimed at juicing flagging device sales.

Image Credits: Google

The new phone is available in two Googley-named colors — “Just Black” and “Sorta Sage” (a faint green). It’s up for pre-order now and will be available in nine countries on October 15.



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The new Google TV brings streaming apps, live TV and search into a single interface

Not to be confused with the smart TV platform of the same name (2010-2014, RIP) or the Android TV platform it’s built on top of, Google has just taken the wraps off the new Google TV. The name refers to the interface for the new, aptly titled Chromecast with Google TV, combining streaming services, live TV (via YouTube TV) and various other Google offerings into a single, streamlined UI.

Live TV is accessible for those who have a YouTube TV membership in the States. The (admittedly pricey at $65 a month) service brings access to 85 live stations, including the networks, CNN, ESPN and Nickelodeon, available via a Live tab.

Google TV is available for  Chromecast with Google TV, which launches today at $50.

Developing…



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Europe eyeing limits on how big tech can use data and bundle apps — reports

European lawmakers are considering new rules for Internet giants that could include forcing them to share data with smaller rivals and/or put narrow limits on how they can use data in a bid to level the digital playing field.

Other ideas in the mix are a ban on dominant platforms favoring their own services or forcing users to sign up to a bundle of services, according to draft regulatory proposals leaked to the press.

The FT and Reuters both report seeing drafts of the forthcoming Digital Services Act (DSA) — which EU lawmakers are expected to introduce before the end of the year.

Their reports suggest there could be major restrictions on key digital infrastructure such as Apple’s iOS App Store and the Android Google Play store, as well as potentially limits on how ecommerce behemoth Amazon could use the data of merchants selling on its platform — something the Commission is already investigating.

A Commission spokesperson declined to confirm or deny anything in the two reports, saying it does not comment on leaks or comments by others.

“We remain committed to presenting the DSA still this year,” he added.

Per the Financial Times, the leaked draft states: “Gatekeepers shall not use data received from business users for advertising services for any other purpose other than advertising service.”

Its report suggests tech giants will be shocked by the scale of regulations coming down the pipe — noting 30 paragraphs of prohibitions or obligations — with the caveat that the proposal remains at an early stage, meaning big tech lobbyists still have everything to play for.

On bundling, lawmakers are eyeing rules that would mean dominant platforms must let users uninstall any pre-loaded apps — as well as looking at barring them from harming rivals by giving preferential treatment to their own services, according to the reports.

“Gatekeepers shall not pre-install exclusively their own applications nor require from any third party operating system developers or hardware manufacturers to pre-install exclusively gatekeepers’ own application,” per Reuters, quoting the draft it’s seen.

The Commission’s experience of antitrust complaints against Google seems likely to be a factor informing these elements — given a string of EU enforcements against the likes of Google Shopping and Android in recent years have generated headlines but failed to move the competitive needle nor satisfy complainants, even as fresh complaints about Google keep coming.

Per Reuters the draft rules would also subject gatekeeper platforms to annual audits of their advertising metrics and reporting practices.

Platforms’ self-serving transparency remains a much complained about facet of how these giants currently operate — making efforts to hold them accountable over things like content take-down performance doomed to fuzzy failure.

The Commission’s public consultation on the DSA was launched in June — and closed on September 8.

In a lengthy response earlier this month, Google lobbied against ex ante rules for platform giants, urging regulators to instead modernise existing frameworks where any gaps are found rather than imposing tougher requirements on tech giants.

Should there be ex ante rules the adtech giant pushed lawmakers not to single out any particular business models — while also urging against an “overly simplistic” definition of ‘gatekeeper’ platforms.

Facebook has also been ploughing effort into lobbying commissioners ahead of the DSA proposal — seeking to frame the discussion in key risk areas for its business model, such as around privacy and data portability.

In May, CEO Mark Zuckerberg made time for a livestreamed debate run by a big tech-backed policy ‘think tank’ CERRE — appearing alongside Thierry Breton, the Commission VP for the internal market. The Facebook CEO warned about ‘Cambridge Analytica-style’ privacy risks if too much data portability is enforced, while the commissioner warned Facebook to pay its taxes or expect to be regulated.

More recently, Facebook’s head of global policy has sought to link European SMEs’ post-COVID-19 economic recovery prospects to Facebook’s continued exploitation of people’s data via its ad platform — tacitly warning EU lawmakers against closing down its privacy-hostile business model.

Such lobbying may be falling on deaf ears, though. Earlier this month Breton, told the FT the feeling among Brussels’ lawmakers is that platforms have got ‘too big to care’ — hence the conviction that new rules are needed to enforce higher standards.

Breton said then that lawmakers are considering a rating system to allow the public and stakeholders to assess companies’ behaviour in areas such as tax compliance and how quickly they take down illegal content.

He suggested a blacklist of activities could be applied to dominant platforms with a sliding scale of penalties for non-compliance — up to and including the separation of some operations, according to the FT’s report.

He also committed to not removing the current limited liability platforms have around content published on their platforms, saying: “The safe harbour of the liability exemption will stay. That’s something that’s accepted by everyone.”

In another signal of looming intent earlier this month, the Commission said it’s time to move beyond self-regulatory approaches to tackling problem content like disinformation — though it’s yet to flesh out its policy plan in that area. In June it also suggested it’s eyeing binding transparency requirements related to online hate speech, saying platforms’ own reporting is still too patchy.



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Element acquires Gitter to get more developers on board with the open Matrix messaging protocol

Some interesting news for lovers of open, decentralized communications tech: Element, the company behind the eponymous Matrix-based Slack competitor (formerly known as Riot) has acquired developer-focused chat platform, Gitter, from dev services giant GitLab, which picked it up back in 2017.

The acquisition means Gitter’s community of some 1.7M users will be migrating to Matrix, the underlying decentralized comms protocol also made by Element — assuming they stick around for the ride with the new owner, of course. But Element is going out of its way to reassure Gitter users they’ll feel properly at home on Matrix.

In a blog post discussing the acquisition, the top-line message from Element CEO and Matrix co-founder, Matthew Hodgson, is that nothing will change in the short term. Furthermore, the pitch to the Gitter community is that, down the line, there will be plenty to gain from the migration/eventual assimilation as a “Gitter-customized version of Element” running on Matrix.

This is because the pledge is feature parity first (so, yes, that means Element will be gaining a bunch of Gitter features; such as threads and instant live room peeking, to name two). Then, once Gitter migrates to Element, it’ll get access to “all the goodies” the combination brings — including end-to-end encryption; reactions; VoIP and conferencing; widgets; all the alternative clients, bots, bridges and servers; the full open standard Matrix API; and the ability to fully participate in that decentralized network…

Another enticing promise is “constantly improving native iOS & Android clients” — which the Element team notes is a welcome alternative to Gitter’s natives ones, given they’re already being deprecated.

The migration will also mean Element will be replacing the current “creaky” matrix-appservice-gitter bridge.

We’re going to build out native Matrix connectivity — running a dedicated Matrix homeserver on gitter.im with a new bridge direct into the heart of Gitter; letting all Gitter rooms be available to Matrix directly as (say) #angular_angular:gitter.im, and bridging all the historical conversations into Matrix via MSC2716 or similar,” it writes. 

“Gitter users will also be able to talk to other users elsewhere in the open Matrix network — e.g. DMing them, and (possibly) joining arbitrary Matrix rooms. Effectively, Gitter will have become a Matrix client,” Element adds.

So the tl;dr is that current Gitter users should have plenty of reasons to be cheerful about the acquisition. (Plus, as Hodgson points out, anyone less than happy with the direction of travel can of course fork the platform and go their own way, being as Element is an open source company. Though of course the hope is no one will feel the need to fork it.) 

The decision to migrate Gitter to Element has been made purely on resources/efficiency grounds, per Hodgson — to avoid the need for Element to maintain both apps over the longer term. He tells TechCrunch the migration will likely take around a year — “possibly more”.

Element also plans to “comprehensively” document the whole process so that it can serve as “the flagship example of how to make an existing chat system talk – and transition to — Matrix”, as it puts it, so it’s got its eye on encouraging more apps to make the move to Matrix.

While Element says GitLab approached them about taking on Gitter they confess to a long-time “crush” on the platform — saying they jumped at the chance when the other company came knocking. (Financial terms of the transaction are not being disclosed, however.)

TechCrunch can claim a teeny part in this open source love-in, being as we’re credited with accidentally introducing the teams — after they found themselves across the aisle exhibiting at Disrupt London, back in 2014 (so you truly never know who you’ll serendipitously meet in Startup Alley).

Taking on Gitter is not just a passion project for Element, though. They saw they see the acquisition boosting growth of the Matrix ecosystem as a whole other developer community gets plugged in and — they hope — converted to evangelists for the open network.

“If developers are using it then when they need something to build on — a technology for their messaging apps — then they will naturally use Matrix. And if we want to grow this ecosystem and have as many apps as possible built on top of the protocol then we need to make it known to everyone so if they’re using it for their own comms it makes it easier for them,” Element COO, Amandine Le Pape, tells TechCrunch.

“We’re really doing this for Matrix, rather than for Element,” adds Hodgson. “We’re just trying to grow and make the Matrix network larger and healthier. So it’s not a matter of we can then sell it to governments as a communication platform more easily, it’s much more… that it becomes known to more developers so that when they build their next WhatsApp they don’t go and invent the wheel all over again. They would just obviously use Matrix because that’s what they’re already using to co-ordinate on working on React or Angular or whatever technology they already know.”

He says bringing Gitter into the Matrix fold is “obviously” a boon to developers who already use Element — such as the Mozilla community and Rust developers — as it will help reduce fragmentation.

“Half the world is on Gitter, half the world is on Element, and some poor lost souls are stuck in Discord and Slack. So by going and bringing the open guys together it will just be very concretely more useful in Element that if you want to reach out to whatever developer you will be able to find them in once place rather than having this horrible split brain between the two,” he adds.

Asked about its decision to sell Gitter, GitLab told us it has never been a core element of its business focus.

“While GitLab has contributed to Gitter’s growth in the past three years, Gitter has always been a standalone product, independent of GitLab, even after GitLab’s acquisition in 2017. GitLab and Element saw an opportunity for Gitter to grow further under Element,” it said.

GitLab has a core business focus to be the market’s leading complete DevOps platform,” it added. “It is not a case of stepping away but seeing an opportunity for an important tool to grow further. In true open source fashion, Gitter is free to use, without limits, for everyone to create public or private communities and to contribute back to. It is currently the only developer-centric messaging platform which is an open source, free, uncapped messaging SaaS. The platform has not been monetized yet and has no commercial edition. Gitter is available on the web with clients available for Mac, Windows, Linux, iOS, and Android.”

Image credit: GitLab/Gitter

Element said it will be bringing on board Gitter’s dev team as part of the acquisition — albeit, it’s actually just one “superstar” developer running the whole thing, per Hodgson and Le Pape. So the team integration process at least shouldn’t be too challenging. 

(For the record, Element is the new name for New Vector (the company) and Riot (the messaging app) which was originally called Vector. So that’s Vector > Riot > Element; and New Vector > Element. “We decided to bring everything under one single brand — as now Element the company, Element the app and Element Matrix Services for the hosting platform,” explains La Pape on this recent rebranding.)

Momentum for Matrix

Matrix, meanwhile, has been continuing to gain momentum throughout the pandemic — thanks to the accelerated shift to remote working pushing demand for secure (and, well, sovereign) digital messaging up the public sector agenda.

“Recently we’ve had the German education system coming on board, the German military coming on board. And we have two other governments who, irritatingly, we can’t disclose yet — but suffice to say they are both very big and very exciting,” notes Hodgson. “They’re in paid trials. Once we successfully convert those it will be as big, if not bigger, than France in terms of banging on about it.” 

“In all of these instances they have gone and slightly tweaked the app. They have forked Element, they have branded it, they’ve built it into an existing tool that they have and it really ties in with the developer story — the reason that they feel happy building on an open standard is because of the wider developer ecosystem,” he adds.

“We’re also seeing a whole galaxy of little startups — nothing to do with us — who are building on Matrix successfully,” Hodgson also tells us, pointing to a German healthcare startup called Famedly as one example.

“It’s unrelated to us but it’s fun to see other companies basically betting the farm on the protocol. So, again, the happier developers are to use the protocol the more random startups like that will begin to bubble up,” he adds. “And if the next-gen of Slack killers happen to be on Matrix — whether it’s us, or anybody else, so much the better.”

Another key factor that could accelerate momentum for Matrix is interoperability — a topic area regulators are increasingly eyeing as they consider how to ensure competition thrives in digital markets that can be prone to ‘winner takes all’ network effects.

Accusations of anti-competitive behavior are also being thrown around in the real-time messaging space specifically. Notably, in July, Slack filed an antitrust complaint against Microsoft arguing the latter is being anti-competitive by unfairly bundling its rival Teams product with its cloud-based productivity suite, Microsoft 365.

The Matrix network is no such walled garden, of course — and Element the app offers bridges to other messaging platforms, enabling its users to chat with others siloed on proprietary platforms like Slack. Slack, however, hasn’t offered the same courtesy to Element (only going so far as offering a bridge for, er, email users last year).

“It would be great for Slack, and [Microsoft] Teams and Discord to join in,” says Hodgson, arguing: “I think there’s probably more impetus for them to do so in terms of being able to interoperate with other systems, because we have so many bridges. If you were migrating from Skype for Business to Slack or something the Matrix could be the bridge between the two.”

“They have different users, right,” continues Le Pape, fleshing out the case for such platforms to open up to Matrix. “Usually Teams ends up being the one for the big companies who are actually using Office 365 while Slack might be more of the startup side of things so, in the end, if we could actually join everything together it would be good.” “If you all actually were able to talk to one another then that would solve it,” she adds in reference to Slack’s antitrust complaint against Microsoft.

Hodgson posits that if Microsoft were to expose Teams into Matrix it could help it defend against the complaint — being as it would be able to tell regulators it’s “participating in a global open standard network” that lets users pick whichever client they like. “I think that’s a very compelling solution,” he suggests, adding that Element is involved in discussions with “various parties” on the EU side “to make sure people understand there are viable open standards for doing this”. 

“Historically, before Matrix, basically there wasn’t anything that had the feature set that you would expect from Slack or Teams. Whereas now there is actually a viable middle language,” he adds.

Asked if it’s a wild idea that a polished consumer messaging app such as Telegram could ever move to Matrix, Hodgson describes it as an “interesting” thought — but admits there’s still a bit of a feature gap for Element, while also lauding the Telegram’s technical performance.

“I could see there being some friction in joining Matrix as it is today because it would be a slight backwards step for them… However the pressure is therefore on us to go and get to the point that Element is as snappy and as polished as Telegram — and [Element already] has good encryption,” he says. “At which point I think the tables could turn interestingly.

“But they’ve got hundreds of millions of users. I guess they feel they’re doing it right. They would rather, perhaps, become the next WhatsApp and be a 2BN user silo rather than play nice with other people because they’re already past critical mass. But perhaps if we do our job and make Matrix large enough and interesting enough that it is worth their while to link to it then why not?”



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Baidu’s smart voice unit to raise independent round on $2.9B valuation

Baidu, China’s dominant search service and a leader in artificial intelligence research, is further diversifying into the smart voice space as its smart living group is poised to raise an independent round on a 20 billion yuan ($2.94 billion) post-money valuation.

The fundraising move signals a potential spinoff of the smart living group down the road. The unit is best known for its voice assistant DuerOS, the search giant’s Alexa equivalent, which was active on 200 million devices including both Baidu’s own branded speaker and a variety of third-party gadgets as of early 2019.

Baidu shipped around 15 million units of its Xiaodu speakers in 2019, making it the second-largest player in China following Alibaba and ahead of Xiaomi, according to market research firm IDC.

Investors including Citic Private Equity Funds Management (CPE), state conglomerate Citic’s asset management firm, as well as Baidu’s venture arm Baidu Capital and IDG Capital, have entered definitive agreements to invest an undisclosed amount into the smart living group’s Series A round.

China has in recent years seen increasing cooperation between its internet firms and industrial incumbents from sectors spanning real estate, healthcare, education to finance, which are eager to embrace digital solutions.

The transaction is expected to close in the fourth quarter of 2020, according to Baidu. Upon completion of the deal, Baidu will be the majority shareholder with super-voting rights in the smart living group and continue to consolidate the unit’s financial results.

The competition in voice intelligence is a race to secure partnerships with hardware makers, which could in turn contribute consumer usage and data. Besides selling speakers, Baidu has a leg up in putting its voice assistant in connected cars, thanks to its ecosystem of automakers using its open-source autonomous driving platform Apollo. Alibaba, needless to say, can leverage its dominance in retail to market its smart voice system and speakers. Xiaomi, on the other hand, commands an portolio of Internet of Things allies that may benefit from gaining voice capabilities.

Baidu’s endeavor in AI is marked by the lineup of famed scientists it has attracted (and lost) in recent years, including Andrew Ng and Lu Qi. The company vowed to stake its future on AI early on, though its nascent AI-related businesses have yet to deliver significant revenue. The 20-year-old firm continues to rely on search to drive ad revenue as it faces growing competition from advertisers’ new darling, TikTok parent ByteDance.



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