Daily Tech Snippet: Wednesday, July 13
- EU-U.S. commercial data transfer pact enters into force: A new commercial data pact between the European Union and the United States entered into force on Tuesday, ending months of uncertainty over cross-border data flows, and companies such as Google, Facebook and Microsoft can sign up from Aug. 1. The EU-U.S. Privacy Shield will give businesses moving personal data across the Atlantic - from human resources information to people's browsing histories to hotel bookings - an easy way to do so without falling foul of tough EU data transferral rules. The previous such framework, Safe Harbour, was struck down by the EU's top court in October on the grounds that it allowed U.S. agents too much access to Europeans' data. Revelations three years ago from former U.S. intelligence contractor Edward Snowden of mass U.S. surveillance practices caused political outrage in Europe and stoked mistrust of big U.S. tech companies. In the months that followed the EU ruling companies have had to rely on other more cumbersome mechanisms for legally transferring data to the United States. The Privacy Shield will underpin over $250 billion dollars of transatlantic trade in digital services annually. Google and Microsoft said they would sign up to the Privacy Shield and would work with European data protection authorities in case of inquiries. A person familiar with social network Facebook's thinking said the company had not yet decided whether to sign up.
- Google just scored a bunch of new property to make its crazy dream campus come true: Google couldn’t score LinkedIn’s business. But it’s getting LinkedIn’s real estate. On Tuesday, the two companies announced a large, surprising property swap encompassing over three million square feet of existing and future real estate, including LinkedIn’s corporate headquarters. The companies wouldn’t share financial terms, but they said neither side paid a premium for the properties. From Google, LinkedIn is picking up seven buildings, a plan it said will consolidate its staff around its Sunnyvale and Mountain View Calif., offices. The company said the deal is unrelated to its recent Microsoft acquisition. In return, Google is getting LinkedIn’s Mountain View headquarters office and — far more critical for the internet giant — four different surrounding properties that enable Google to follow through on its ambitious plan for a new, green, crazy-futurist campus. But here’s the kernel: Google proposed the aforementioned crazy-futurist campus in early 2015. It was a big deal; the “genius” architect behind it got a magazine cover. Then LinkedIn spoiled the fun: Mountain View’s city council voted last May to cede the property to LinkedIn, blocking Google’s grand vision. But now the runway for Google is clear.
- Amazon Says ‘Prime Day’ Sales Up 30 Percent for Merchants: Amazon.com Inc. said Prime Day sales from third-party merchants surged 30 percent compared with a year earlier, fueled largely by international demand. While U.S. sales appeared to start slowly on Tuesday, hampered by technical glitches, the world’s largest e-commerce company built momentum on the summertime promotion it created last year to entice shoppers to subscribe to its $99-a-year Amazon Prime membership. “Led by strong growth internationally, we are seeing more than 30 percent increase over last year in the number of items sold by small businesses and sellers on Prime Day,” Amazon said in an e-mail, reflecting sales as of 3 p.m. New York time. “We are expecting a record day for small businesses and sellers on Amazon with many more deals to come today.” Amazon also used Prime Day to push shoppers beyond physical goods by offering discounts on housecleaning through Amazon Home Services, restaurant delivery in several cities and on-demand video rentals for movies such as “Kung Fu Panda 3” and “Deadpool.” Hot-selling items on Tuesday included pressure cookers and iRobot Roomba vacuums, according to the company.The event highlights the benefits of Prime membership, such as free two-day shipping on many items, which converts the occasional Amazon shopper into a devotee. Prime subscribers spend about $1,200 annually on the website, compared with $500 for non-subscribers, according to Consumer Intelligence Research Partners in Chicago. Amazon had 63 million Prime subscribers as of June 30, an increase of 43 percent from a year earlier, according to the research firm.
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