While Meta adjusts, some small businesses have begun seeking other avenues for ads. Shawn Baker, the owner of Baker SoftWash, an exterior cleaning company in Mooresville, N.C., said it previously took about $6 of Facebook ads to identify a new customer. Now it costs $27 because the ads do not find the right people, he said.
Mr. Baker has started spending $200 a month to advertise through Google’s marketing program for local businesses, which surfaces his website when people who live in the area search for cleaners. To compensate for those higher marketing costs, he has raised his prices 7 percent.
“You’re spending more money now than what you had to spend before to do the same things,” he said.
Other tech giants with first-party information are capitalizing on the change. Amazon, for example, has reams of data on its customers, including what they buy, where they reside, and what movies or TV shows they stream.
In February, Amazon disclosed the size of its advertising business — $31.2 billion in revenue in 2021 — for the first time. That makes advertising its third-largest source of sales after e-commerce and cloud computing. Amazon declined to comment.
Amber Murray, the owner of See Your Strength in St. George, Utah, which sells stickers online for people with anxiety, started experimenting with ads on Amazon after the performance of Facebook ads deteriorated. The results were remarkable, she said.
In February, she paid about $200 for Amazon to feature her products near the top of search results when customers looked up textured stickers. Sales totaled $250 a day and continued to grow, she said. When she spent $85 on a Facebook ad campaign in January, it yielded just $37.50 in sales, she said.
“I think the golden days of Facebook advertising are over,” Ms. Murray said. “On Amazon, people are looking for you, instead of you telling people what they should want.”
RENO, Nev.–(BUSINESS WIRE)–Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced the sale of The ERGS Portfolio, a six-property multifamily portfolio spanning a total of 1,077 units across eight assets. The portfolio traded for $302.5 million, or $280,872 per unit.
“With this purchase, the buyer establishes a strong presence in Reno’s multifamily market,” said Kenneth Blomsterberg, senior managing director investments in Marcus & Millichap’s Reno office. “The tremendous upside potential that can be captured through value-add renovations across the majority of the assets in the portfolio, along with the high-value major employers that can be found in the Tahoe-Reno Industrial Center (TRI Center), made for an extremely attractive acquisition.” Blomsterberg, Ryan Rife and Daniel Winrod represented the seller and procured the buyer. “Over the past five years, the Reno-Sparks region has experienced a rapidly evolving landscape of business development and employment opportunities, and this trend is projected to continue,” added Rife. “Tesla, Apple, Google, Amazon, Blockchain LLC, Switch, and Panasonic are only a few of the major employers that have brought thousands of new jobs to the region. Many of these companies are in the TRI Center, the nation’s largest industrial park, located just a short drive from the ERGS Portfolio.”
Built between 1958 and 2021, the assets are:
North Peak Apartments, 352 units
Silver Lake Apartments, 352 units
Sierra Sage Apartments, 232 units
Vale Apartments, 40 units
Vale Townhomes, 16 units
Peavine Peaks, 30 units
Oak Manor, 47 units
Angel Street Apartments, 8 units
“The bulk of the ERGS Portfolio is located in the North Valleys submarket, which is the second-fastest growing employment location in Northern Nevada,” said Winrod. Truckee Meadows Community College is located less than five minutes from the ERGS Portfolio, and the University of Nevada, Reno is nearby. Lake Tahoe, the Black Rock Desert, and North Valleys Regional Park are within a short drive.
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2021, the company had 1,994 investment sales and financing professionals in 82 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 13,255 transactions in 2021, with a sales volume of approximately $84.4 billion. For additional information, please visit www.MarcusMillichap.com.
Nokia said this month that it would stop its sales in Russia and denounced the invasion of Ukraine. But the Finnish company didn’t mention what it was leaving behind: equipment and software connecting the government’s most powerful tool for digital surveillance to the nation’s largest telecommunications network.
The tool was used to track supporters of the Russian opposition leader Aleksei A. Navalny. Investigators said it had intercepted the phone calls of a Kremlin foe who was later assassinated. Called the System for Operative Investigative Activities, or SORM, it is also most likely being employed at this moment as President Vladimir V. Putin culls and silences antiwar voices inside Russia.
For more than five years, Nokia provided equipment and services to link SORM to Russia’s largest telecom service provider, MTS, according to company documents obtained by The New York Times. While Nokia does not make the tech that intercepts communications, the documents lay out how it worked with state-linked Russian companies to plan, streamline and troubleshoot the SORM system’s connection to the MTS network. Russia’s main intelligence service, the F.S.B., uses SORM to listen in on phone conversations, intercept emails and text messages, and track other internet communications.
The documents, spanning 2008 to 2017, show in previously unreported detail that Nokia knew it was enabling a Russian surveillance system. The work was essential for Nokia to do business in Russia, where it had become a top supplier of equipment and services to various telecommunications customers to help their networks function. The business yielded hundreds of millions of dollars in annual revenue, even as Mr. Putin became more belligerent abroad and more controlling at home.
For years, multinational companies capitalized on surging Russian demand for new technologies. Now global outrage over the largest war on European soil since World War II is forcing them to re-examine their roles.
The conflict in Ukraine has upended the idea that products and services are agnostic. In the past, tech companies argued it was better to remain in authoritarian markets, even if that meant complying with laws written by autocrats. Facebook, Google and Twitter have struggled to find a balance when pressured to censor, be it in Vietnam or in Russia, while Apple works with a state-owned partner to store customer data in China that the authorities can access. Intel and Nvidia sell chips through resellers in China, allowing the authorities to buy them for computers powering surveillance.
The lessons that companies draw from what’s happening in Russia could have consequences in other authoritarian countries where advanced technologies are sold. A rule giving the U.S. Commerce Department the power to block companies, including telecom equipment suppliers, from selling technology in such places was part of a bill, called the America Competes Act, passed by the House of Representatives in February.
“We should treat sophisticated surveillance technology in the same way we treat sophisticated missile or drone technology,” said Representative Tom Malinowski, a New Jersey Democrat who was an assistant secretary of state for human rights in the Obama administration. “We need appropriate controls on the proliferation of this stuff just as we do on other sensitive national security items.”
Andrei Soldatov, an expert on Russian intelligence and digital surveillance who reviewed some of the Nokia documents at the request of The Times, said that without the company’s involvement in SORM, “it would have been impossible to make such a system.”
“They had to have known how their devices would be used,” said Mr. Soldatov, who is now a fellow at the Center for European Policy Analysis.
Nokia, which did not dispute the authenticity of the documents, said that under Russian law, it was required to make products that would allow a Russian telecom operator to connect to the SORM system. Other countries make similar demands, the company said, and it must decide between helping make the internet work or leaving altogether. Nokia also said that it did not manufacture, install or service SORM equipment.
The company said it follows international standards, used by many suppliers of core network equipment, that cover government surveillance.It called on governments to set clearer export rules about where technology could be sold and said it “unequivocally condemns” Russia’s invasion of Ukraine.
“Nokia does not have an ability to control, access or interfere with any lawful intercept capability in the networks which our customers own and operate,” it said in a statement.
MTS did not respond to requests for comment.
The documents that The Times reviewed were part of almost two terabytes of internal Nokia emails, network schematics, contracts, license agreements and photos. The cybersecurity firm UpGuard and TechCrunch, a news website, previously reported on some of the documents linking Nokia to the state surveillance system. Following those reports, Nokia played down the extent of its involvement.
But The Times obtained a larger cache showing Nokia’s depth of knowledge about the program. The documents include correspondence on Nokia’s sending engineers to examine SORM, details of the company’s work at more than a dozen Russian sites, photos of the MTS network linked to SORM, floor plans of network centers and installation instructions from a Russian firm that made the surveillance equipment.
After 2017, which is when the documents end, Nokia continued to work with MTS and other Russian telecoms, according to public announcements.
SORM, which dates to at least the 1990s, is akin to the systems used by law enforcement around the world to wiretap and surveil criminal targets. Telecom equipment makers like Nokia are often required to ensure that such systems, known as lawful intercept, function smoothly within communications networks.
In democracies, the police are generally required to obtain a court order before seeking data from telecom service providers. In Russia, the SORM system sidesteps that process, working like a surveillance black box that can take whatever data the F.S.B. wants without any oversight.
In 2018, Russia strengthened a law to require internet and telecom companies to disclose communications data to the authorities even without a court order. The authorities also mandated that companies store phone conversations, text messages and electronic correspondence for up to six months, and internet traffic history for 30 days. SORM works in parallel with a separate censorship system that Russia has developed to block access to websites.
Civil society groups, lawyers and activists have criticized the Russian government for using SORM to spy on Mr. Putin’s rivals and critics. The system, they said, is almost certainly being used now to crack down on dissent against the war. This month, Mr. Putin vowed to remove pro-Western Russians, whom he called “scum and traitors,” from society, and his government has cut off foreign internet services like Facebook and Instagram.
Nokia is best known as a pioneer of mobile phones, a business it sold in 2013 after Apple and Samsung began dominating the market. It now makes the bulk of its $24 billion in annual sales providing telecom equipment and services so phone networks can function. Roughly $480 million of Nokia’s annual sales come from Russia and Ukraine, or less than 2 percent of its overall revenue, according to the market research firm Dell’Oro.
Last decade, the Kremlin had grown serious about cyberspying, and telecom equipment providers were legally required to provide a gateway for spying. If Nokia did not comply, competitors such as the Chinese telecom giant Huawei were assumed to be willing to do so.
By 2012, Nokia was providing hardware and services to the MTS network, according to the documents. Project documentation signed by Nokia personnel included a schematic of the network that depicted how data and phone traffic should flow to SORM. Annotated photos showed a cable labeled SORM plugging into networking equipment, apparently documenting work by Nokia engineers.
Flow charts showed how data would be transmitted to Moscow and F.S.B. field offices across Russia, where agents could use a computer system to search people’s communications without their knowledge.
Specifics of how the program is used have largely been kept secret. “You will never know that surveillance was carried out at all,” said Sarkis Darbinyan, a Russian lawyer who co-founded Roskomsvoboda, a digital rights group.
But some information about SORM has leaked out from court cases, civil society groups and journalists.
In 2011, embarrassing phone calls made by the Russian opposition leader Boris Y. Nemtsov were leaked to the media. Mr. Soldatov, who covered the incident as an investigative reporter, said the phone recordings had come from SORM surveillance. Mr. Nemtsov was murdered near the Kremlin in 2015.
In 2013, a court case involving Mr. Navalny included details about his communications that were believed to have been intercepted by SORM. In 2018, some communications by Mr. Navalny’s supporters were tracked by SORM, said Damir Gainutdinov, a Russian lawyer who represented the activists. He said phone numbers, email addresses and internet protocol addresses had been merged with information that the authorities collected from VK, Russia’s largest social network, which is also required to provide access to user data through SORM.
“These tools are used not just to prosecute somebody but to fill out a dossier and collect data about somebody’s activities, about their friends, partners and so on,” said Mr. Gainutdinov, who now lives in Bulgaria. “Officers of the federal security service, due to the design of this system, have unlimited access to all communication.”
By 2015, SORM was attracting international attention. That year, the European Court of Human Rights called the program a “system of secret surveillance” that was deployed arbitrarily without sufficient protection against abuse. The court ultimately ruled, in a case brought by a Russian journalist, that the tools violated European human rights laws.
In 2016, MTS tapped Nokia to help upgrade its network across large swaths of Russia. MTS set out an ambitious plan to install new hardware and software between June 2016 and March 2017, according to one document.
Nokia performed SORM-related work at facilities in at least 12 cities in Russia, according to the documents, which show how the network linked the surveillance system. In February 2017, a Nokia employee was sent to three cities south of Moscow to examine SORM, according to letters from a Nokia executive informing MTS employees of the trip.
Nokia worked with Malvin, a Russian firm that manufactured the SORM hardware the F.S.B. used. One Malvin document instructed Malvin’s partners to ensure that they had entered the correct parameters for operating SORM on switching hardware. It also reminded them to notify Malvin technicians of passwords, user names and IP addresses.
Malvin is one of several Russian companies that won lucrative contracts to make equipment to analyze and sort through telecommunications data. Some of those companies, including Malvin, were owned by a Russian holding company, Citadel, which was controlled by Alisher Usmanov. Mr. Usmanov, an oligarch with ties to Mr. Putin, is now the subject of sanctions in the United States, the European Union, Britain and Switzerland.
Malvin and Citadel did not respond to requests for comment.
Other Nokia documents specified which cables, routers and ports to use to connect to the surveillance system. Network maps showed how gear from other companies, including Cisco, plugged into the SORM boxes. Cisco declined to comment.
For Nokia engineers in Russia, the work related to SORM was often mundane. In 2017, a Nokia technician received an assignment to Orel, a city about 225 miles south of Moscow.
“Carry out work on the examination of SORM,” he was told.
March 28 (Reuters) – Tesla Inc (TSLA.O) will seek investor approval to increase its number of shares to enable a stock split in the form of a dividend, the electric-car maker said on Monday, sending its shares up about 5%.
The plan came as the company suspended its Shanghai factory amid COVID-19-related lockdown measures and its artificial intelligence head took a sabbatical as the company aims to achieve full self-driving capability this year.
The proposal, first announced on Twitter, has been approved by its board and shareholders will vote on it at an annual meeting. The stock split, if approved, would be the latest after a five-for-one split in August 2020 that made Tesla shares cheaper for its employees and investors.
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Following a pandemic-induced rally in the technology shares, Alphabet Inc (GOOGL.O), Amazon.com Inc (AMZN.O) and Apple Inc (AAPL.O), too, have in the recent past split their shares to make them more affordable.
Since the stock split in 2020, they have surged 128%, boosting the company’s market capitalization above $1 trillion and making it the biggest U.S. automaker by that measure.
“This (stock split) could further fuel the bubble in Tesla’s stock that has been brewing over the past two years,” said David Trainer, chief executive of investment research firm New Constructs.
Tesla has delivered nearly a million electric cars annually, while ramping up production by setting up new factories in Austin and Berlin amid COVID-19-related disruptions and increasing competition.
Model Y cars are pictured during the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via REUTERS
Tesla on Monday notified its suppliers and workers that its Shanghai factory in China will be closed for four days as the financial hub said it would lock down in two stages to carry out mass COVID-19 testing. read more
Tesla Chief Executive Officer Elon Musk said on Monday that he had “supposedly” tested positive for COVID-19, a few days after he attended a car delivery event at the company’s new Berlin factory.
“We think Berlin ramping, and both the MiniCar and India are on the horizon, we would agree with the timing,” Roth Capital analyst Craig Irwin said, hinting that companies usually execute stock splits when good news is ahead.
Musk also said on Sunday Tesla’s artificial intelligence chief Andrej Karpathy was on a fourth-month sabbatical, at a critical time that Musk wants to achieve full self-driving capability and roll out a humanoid robot prototype this year.
“Especially excited to get focused time to re-sharpen my technical edge and train some neural nets!” Karparthy tweeted.
“Though I already miss all the robots and GPU/Dojo clusters and looking forward to having them at my fingertips again,” he said, referring to Tesla’s AI chip Dojo.
Musk said in a podcast interview in January that Karpathy played an important role, adding: “People will give me too much credit and they’ll give Andrej too much credit.”
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Reporting by Nivedita Balu and Akash Sriram in Bengaluru and Hyunjoo Jin in San Francisco; Editing by Maju Samuel, Arun Koyyur and Bernadette Baum
Our Standards: The Thomson Reuters Trust Principles.
When Victoria Nuland, an under secretary of state, was questioned in the Senate this month over whether Ukraine had biological weapons, she said laboratories in the country had materials that could be dangerous if they fell into Russian hands. Jack Posobiec, a far-right commentator, insinuated on his March 9 podcast that Ms. Nuland’s answer bolstered the conspiracy theory.
“Everybody needs to come clean about what was going on in those labs, because I guarantee you the Russians are about to put all of it onto the world stage,” said Mr. Posobiec, who did not respond to calls seeking comment.
Russian officials also latched on to Ms. Nuland’s comments. “The nervous reaction confirms that Russia’s allegations are grounded,” the country’s official account for the Ministry of Foreign Affairs posted on Twitter.
Beyond the bioweapons conspiracy theory, Joseph Jordan, a white nationalist podcaster who goes by the pseudonym Eric Striker, repeated Russia’s claim that a pregnant woman who was injured in the bombing of a Ukrainian maternity hospital had faked her injuries. In his Telegram channel, Mr. Jordan told his 15,000 followers that the hospital photos had been “staged.” He did not respond to a request for comment.
Some Russians have publicly commented on what appears to be common ground with far-right Americans. Last week on the Russian state-backed news program “60 Minutes,” which is not connected to the CBS show of the same name, the host, Olga Skabeeva, addressed the country’s strengthening ties with Mr. Carlson.
“Our acquaintance, the host of Fox News Tucker Carlson, obviously has his own interests,” she said, airing several clips of Mr. Carlson’s show where he suggested the United States had pushed for conflict in Ukraine. “But lately, more and more often, they’re in tune with our own.”
WASHINGTON — When the Cold War ended, governments and companies believed that stronger global economic ties would lead to greater stability. But the Ukraine war and the pandemic are pushing the world in the opposite direction and upending those ideas.
Important parts of the integrated economy are unwinding. American and European officials are now using sanctions to sever major parts of the Russian economy — the 11th largest in the world — from global commerce, and hundreds of Western companies have halted operations in Russia on their own. Amid the pandemic, companies are reorganizing how they obtain their goods because of soaring costs and unpredictable delays in global supply chains.
Western officials and executives are also rethinking how they do business with China, the world’s second-largest economy, as geopolitical tensions and the Chinese Communist Party’s human rights abuses and use of advanced technology to reinforce autocratic control make corporate dealings more fraught.
The moves reverse core tenets of post-Cold War economic and foreign policies forged by the United States and its allies that were even adopted by rivals like Russia and China.
“What we’re headed toward is a more divided world economically that will mirror what is clearly a more divided world politically,” said Edward Alden, a senior fellow at the Council on Foreign Relations. “I don’t think economic integration survives a period of political disintegration.”
“Does globalization and economic interdependence reduce conflict?” he added. “I think the answer is yes, until it doesn’t.”
Opposition to globalization gained momentum with the Trump administration’s trade policies and “America First” drive, and as the progressive left became more powerful. But the pandemic and President Vladimir V. Putin’s invasion of Ukraine have brought into sharp relief the uncertainty of the existing economic order.
President Biden warned President Xi Jinping of China on Friday that there would be “consequences” if Beijing gave material aid to Russia for the war in Ukraine, an implicit threat of sanctions. China has criticized sanctions on Russia, and Le Yucheng, the vice foreign minister, said in a speech on Saturday that “globalization should not be weaponized.” Yet China increasingly has imposed economic punishments — Lithuania, Norway, Australia, Japan and South Korea have been among the targets.
The result of all the disruptions may well be a fracturing of the world into economic blocs, as countries and companies gravitate to ideological corners with distinct markets and pools of labor, as they did in much of the 20th century.
Mr. Biden already frames his foreign policy in ideological terms, as a mission of unifying democracies against autocracies. Mr. Biden also says he is enacting a foreign policy for middle-class Americans, and central to that is getting companies to move critical supply chains and manufacturing out of China.
The goal is given urgency by the hobbling of those global links over two years of the pandemic, which has brought about a realization among the world’s most powerful companies that they need to focus on not just efficiency and cost, but also resiliency. This month, lockdowns China imposed to contain Covid-19 outbreaks have once again threatened to stall global supply chains.
The economic impact of such a change is highly uncertain. The emergence of new economic blocs could accelerate a massive reorganization in financial flows and supply chains, potentially slowing growth, leading to some shortages and raising prices for consumers in the short term. But the longer-term effects on global growth, worker wages and supplies of goods are harder to assess.
The war has set in motion “deglobalization forces that could have profound and unpredictable effects,” said Laurence Boone, the chief economist of the Organization for Economic Cooperation and Development.
For decades, executives have pushed for globalization to expand their markets and to exploit cheap labor and lax environmental standards. China especially has benefited from this, while Russia profits from its exports of minerals and energy. They tap into enormous economies: The Group of 7 industrialized nations make up more than 50 percent of the global economy, while China and Russia together account for about 20 percent.
Trade and business ties between the United States and China are still robust, despite steadily worsening relations. But with the new Western sanctions on Russia, many nations that are not staunch partners of America are now more aware of the perils of being economically tied to the United States and its allies.
If Mr. Xi and Mr. Putin organize their own economic coalition, they could bring in other nations seeking to shield themselves from Western sanctions — a tool that all recent U.S. presidents have used.
“Your interdependence can be weaponized against you,” said Dani Rodrik, a professor of international political economy at Harvard Kennedy School. “That’s a lesson that I imagine many countries are beginning to internalize.”
The Ukraine war, he added, has “probably put a nail in the coffin of hyperglobalization.”
China and, increasingly, Russia have taken steps to wall off their societies, including erecting strict censorship mechanisms on their internet networks, which have cut off their citizens from foreign perspectives and some commerce. China is on a drive to make critical industries self-sufficient, including for technologies like semiconductors.
And China has been in talks with Saudi Arabia to pay for some oil purchases in China’s currency, the renminbi, The Wall Street Journal reported; Russia was in similar discussions with India. The efforts show a desire by those governments to move away from dollar-based transactions, a foundation of American global economic power.
For decades, prominent U.S. officials and strategists asserted that a globalized economy was a pillar of what they call the rules-based international order, and that trade and financial ties would prevent major powers from going to war. The United States helped usher China into the World Trade Organization in 2001 in a bid to bring its economic behavior — and, some officials hoped, its political system — more in line with the West. Russia joined the organization in 2012.
But Mr. Putin’s war and China’s recent aggressive actions in Asia have challenged those notions.
“The whole idea of the liberal international order was that economic interdependence would prevent conflict of this kind,” said Alina Polyakova, president of the Center for European Policy Analysis, a research group in Washington. “If you tie yourselves to each other, which was the European model after the Second World War, the disincentives would be so painful if you went to war that no one in their right mind would do it. Well, we’ve seen now that has proven to be false.”
“Putin’s actions have shown us that might have been the world we’ve been living in, but that’s not the world he or China have been living in,” she said.
The United States and its partners have blocked Russia from much of the international financial system by banning transactions with the Russian central bank. They have also cut Russia off from the global bank messaging system called SWIFT, frozen the assets of Russian leaders and oligarchs, and banned the export from the United States and other nations of advanced technology to Russia. Russia has answered with its own export bans on food, cars and timber.
The penalties can lead to odd decouplings: British and European sanctions on Roman Abramovich, the Russian oligarch who owns the Chelsea soccer team in Britain, prevent the club from selling tickets or merchandise.
About 400 companies have chosen to suspend or withdraw operations from Russia, including iconic brands of global consumerism such as Apple, Ikea and Rolex.
While many countries remain dependent on Russian energy exports, governments are strategizing how to wean themselves. Washington and London have announced plans to end imports of Russian oil.
The outstanding question is whether any of the U.S.-led penalties would one day be extended to China, which is a far bigger and more integral part of the global economy than Russia.
Even outside the Ukraine war, Mr. Biden has continued many Trump administration policies aimed at delinking parts of the American economy from that of China and punishing Beijing for its commercial practices.
Officials have kept the tariffs imposed by Mr. Trump, which covered about two-thirds of Chinese imports. The Treasury Department has continued to impose investment bans on Chinese companies with ties to the country’s military. And in June, a law will go into effect in the United States barring many goods made in whole or in part in the region of Xinjiang.
Despite all that, demand for Chinese-made goods has surged through the pandemic, as Americans splurge on online purchases. The overall U.S. trade deficit soared to record levels last year, pushed up by a widening deficit with China, and foreign investments into China actually accelerated last year.
Some economists have called for more global integration, not less. Speaking at a virtual conference on Monday, Ngozi Okonjo-Iweala, director general of the World Trade Organization, urged a move toward “re-globalization,” saying, “Deeper, more diversified international markets remain our best bet for supply resilience.
But those economic ties will be further strained if U.S.-China relations worsen, and especially if China gives substantial aid to Russia.
Besides recent warnings to China from Mr. Biden and Secretary of State Antony J. Blinken, Commerce Secretary Gina Raimondo has said her agency would ban the sale of critical American technology to Chinese companies if China tried to supply forbidden technology to Russia.
In the meantime, the uncertainty has left the U.S.-China relationship in flux. While many major Chinese banks and private companies have suspended their interactions with Russia to comply with sanctions, foreign asset managers appear to have also begun moving their money out of China in recent weeks, possibly in anticipation of sanctions.
Mary Lovely, a senior fellow at the Peterson Institute for International Economics, said she did not expect China to “throw all in” with Russia, but that the war could still strain economic ties by worsening U.S.-China relations.
“Right now, there is great uncertainty as to how the U.S. and China will respond to the challenges posed by Russia’s increasingly urgent need for assistance,” she said. “That policy uncertainty is another push to multinationals who were already rethinking supply chains.”
After war began last month, President Volodymyr Zelensky of Ukraine turned to Mykhailo Fedorov, a vice prime minister, for a key role.
Mr. Fedorov, 31, the youngest member of Mr. Zelensky’s cabinet, immediately took charge of a parallel prong of Ukraine’s defense against Russia. He began a campaign to rally support from multinational businesses to sunder Russia from the world economy and to cut off the country from the global internet, taking aim at everything from access to new iPhones and PlayStations to Western Union money transfers and PayPal.
To achieve Russia’s isolation, Mr. Fedorov, a former tech entrepreneur, used a mix of social media, cryptocurrencies and other digital tools. On Twitter and other social media, he pressured Apple, Google, Netflix, Intel, PayPal and others to stop doing business in Russia. He helped form a group of volunteer hackers to wreak havoc on Russian websites and online services. His ministry also set up a cryptocurrency fund that has raised more than $60 million for the Ukrainian military.
The work has made Mr. Fedorov one of Mr. Zelensky’s most visible lieutenants, deploying technology and finance as modern weapons of war. In effect, Mr. Fedorov is creating a new playbook for military conflicts that shows how an outgunned country can use the internet, crypto, digital activism and frequent posts on Twitter to help undercut a foreign aggressor.
McDonald’s have withdrawn from Russia, with the war’s human toll provoking horror and outrage. Economic sanctions by the United States, European Union and others have played a central role in isolating Russia.
Mr. Zelensky was elected in 2019, he appointed Mr. Fedorov, then 28, to be minister of digital transformation, putting him in charge of digitizing Ukrainian social services. Through a government app, people could pay speeding tickets or manage their taxes. Last year, Mr. Fedorov visited Silicon Valley to meet with leaders including Tim Cook, the chief executive of Apple.
Russia invaded Ukraine, Mr. Fedorov immediately pressured tech companies to pull out of Russia. He made the decision with Mr. Zelensky’s backing, he said, and the two men speak every day.
“I think this choice is as black and white as it ever gets,” Mr. Fedorov said. “It is time to take a side, either to take the side of peace or to take the side of terror and murder.”
On Feb. 25, he sent letters to Apple, Google and Netflix, asking them to restrict access to their services in Russia. Less than a week later, Apple stopped selling new iPhones and other products in Russia.
Russia damaged the country’s main telecommunications infrastructure. Two days after contacting Mr. Musk, a shipment of Starlink equipment arrived in Ukraine.
Since then, Mr. Fedorov said he has periodically exchanged text messages with Mr. Musk.
were put on pause following the invasion. Russia, a signatory to the accord, has tried to use final approval of the deal as leverage to soften sanctions imposed because of the war.
But while many companies have halted business in Russia, more could be done, he said. Apple and Google should pull their app stores from Russia and software made by companies like SAP was also being used by scores of Russian businesses, he has noted.
In many instances, the Russian government is cutting itself off from the world, including blocking access to Twitter and Facebook. On Friday, Russian regulators said they would also restrict access to Instagram and called Meta an “extremist” organization.
Some civil society groups have questioned whether Mr. Fedorov’s tactics could have unintended consequences. “Shutdowns can be used in tyranny, not in democracy,” the Internet Protection Society, an internet freedom group in Russia, said in a statement earlier this week. “Any sanctions that disrupt access of Russian people to information only strengthen Putin’s regime.”
Mr. Fedorov said it was the only way to jolt the Russian people into action. He praised the work of Ukraine-supporting hackers who have been coordinating loosely with Ukrainian government to hit Russian targets.
“After cruise missiles started flying over my house and over houses of many other Ukrainians, and also things started exploding, we decided to go into counter attack,” he said.
Mr. Fedorov’s work is an example of Ukraine’s whatever-it-takes attitude against a larger Russian army, said Max Chernikov, a software engineer who is supporting the volunteer group known as the IT Army of Ukraine.
“He acts like every Ukrainian — doing beyond his best,” he said.
Mr. Fedorov, who has a wife and young daughter, said he remained hopeful about the war’s outcome.
“The truth is on our side,” he added. “I’m sure we’re going to win.”
Daisuke Wakabayashi and Mike Isaac contributed reporting.
For months, former President Donald J. Trump has promoted Truth Social, the soon-to-be-released flagship app of his fledging social media company, as a platform where free speech can thrive without the constraints imposed by Big Tech.
At least seven other social media companies have promised to do the same.
Gettr, a right-wing alternative to Twitter founded last year by a former adviser to Mr. Trump, bills itself as a haven from censorship. That’s similar to Parler — essentially another Twitter clone backed by Rebekah Mercer, a big donor to the Republican Party. MeWe and CloutHub are similar to Facebook, but with the pitch that they promote speech without restraint.
Truth Social was supposed to go live on Presidents’ Day, but the start date was recently pushed to March, though a limited test version was unveiled recently. A full rollout could be hampered by a regulatory investigation into a proposed merger of its parent company, the Trump Media & Technology Group, with a publicly traded blank-check company.
If and when it does open its doors, Mr. Trump’s app will be the newest — and most conspicuous — entrant in the tightly packed universe of social media companies that have cropped up in recent years, promising to build a parallel internet after Twitter, Facebook, Google and other mainstream platforms began to crack down on hate speech.
211 million daily active users on Twitter who see ads.
Many people who claim to crave a social network that caters to their political cause often aren’t ready to abandon Twitter or Facebook, said Weiai Xu, an assistant professor of communications at the University of Massachusetts-Amherst. So the big platforms remain important vehicles for “partisan users” to get their messages out, Mr. Xu said.
Gettr, Parler and Rumble have relied on Twitter to announce the signing of a new right-wing personality or influencer. Parler, for instance, used Twitter to post a link to an announcement that Melania Trump, the former first lady, was making its platform her “social media home.”
Alternative social media companies mainly thrive off politics, said Mark Weinstein, the founder of MeWe, a platform with 20 million registered users that has positioned itself as an option to Facebook.
certain subscription services. His start-up has raised $24 million from 100 investors.
But since political causes drive the most engagement for alternative social media, most other platforms are quick to embrace such opportunities. This month, CloutHub, which has just four million registered users, said its platform could be used to raise money for the protesting truckers of Ottawa.
Mr. Trump wasn’t far behind. “Facebook and Big Tech are seeking to destroy the Freedom Convoy of Truckers,” he said in a statement. (Meta, the parent company of Facebook, said it removed several groups associated with the convoy for violating their rules.)
Trump Media, Mr. Trump added, would let the truckers “communicate freely on Truth Social when we launch — coming very soon!”
Of all the alt-tech sites, Mr. Trump’s venture may have the best chance of success if it launches, not just because of the former president’s star power but also because of its financial heft. In September, Trump Media agreed to merge with Digital World Acquisition, a blank-check or special purpose acquisition company that raised $300 million. The two entities have raised $1 billion from 36 investors in a private placement.
But none of that money can be tapped until regulators wrap up their inquiry into whether Digital World flouted securities regulations in planning its merger with Trump Media. In the meantime, Trump Media, currently valued at more than $10 billion based on Digital World’s stock price, is trying to hire people to build its platform.
Trump supporter, and the venture fund of Mr. Thiel’s protégé J.D. Vance, who is running for a Senate seat from Ohio.
Rumble is also planning to go public through a merger with a special-purpose acquisition company. SPACs are shell companies created solely for the purpose of merging with an operating entity. The deal, arranged by the Wall Street firm Cantor Fitzgerald, will give Rumble $400 million in cash and a $2.1 billion valuation.
The site said in January that it had 39 million monthly active users, up from two million two years ago. It has struck various content deals, including one to provide video and streaming services to Truth Social. Representatives for Rumble did not respond to requests for comment.
removed it from their app stores and Amazon cut off web services after the riot, according to SensorTower, a digital analytics company.
John Matze, one of its founders, from his position as chief executive. Mr. Matze has said he was dismissed after a dispute with Ms. Mercer — the daughter of a wealthy hedge fund executive who is Parler’s main backer — over how to deal with extreme content posted on the platform.
Christina Cravens, a spokeswoman for Parler,said the company had always “prohibited violent and inciting content” and had invested in “content moderation best practices.”
Moderating content will also be a challenge for Truth Social, whose main star, Mr. Trump, has not been able to post messages since early 2021, when Twitter and Facebook kicked him off their platforms for inciting violence tied to the outcome of the 2020 presidential election.
With Mr. Trump as its main poster, it was unclear if Truth Social would grow past subscribers who sign up simply to read the former president’s missives, Mr. Matze said.
“Trump is building a community that will fight for something or whatever he stands for that day,” he said. “This is not social media for friends and family to share pictures.”
Google said on Wednesday that it was working on privacy measures meant to limit the sharing of data on smartphones running its Android software. But the company promised those changes would not be as disruptive as a similar move by Apple last year.
Apple’s changes to its iOS software on iPhones asked users for permission before allowing advertisers to track them. Apple’s permission controls — and, ultimately, the decision by users to block tracking — have had a profound impact on internet companies that built businesses on so-called targeted advertising.
Google did not provide an exact timeline for its changes, but said it would support existing technologies for at least two more years.
This month, Meta, the company founded as Facebook, said Apple’s privacy changes would cost it $10 billion this year in lost advertising revenue. The revelation weighed on Meta’s stock price and led to concerns about other companies reliant on digital advertising.
revamp its approach to eliminating so-called cookies, a tracking tool, on Chrome while facing resistance from privacy groups and advertisers.
Google said it was proposing some new privacy-minded approaches in Android to allow advertisers to gauge the performance of ad campaigns and show personalized ads based on past behavior or recent interests — as well as new tools to limit covert tracking through apps. Google did not offer much in terms of detail about how these new alternatives would work.
As part of the changes, Google said, it plans to phase out Advertising ID, a tracking feature within Android that helps advertisers know whether users clicked on an ad or bought a product as well as keep tabs on their interests and activities. Google said it already allowed users to opt out of personalized ads by removing the tracking identifier.
The company said it planned to eliminate identifiers used in advertising on Android for everyone — including Google. Mr. Chavez said Google’s own apps would not have special or privileged access to Android data or features without specifying how that would work. This echoes a pledge Google made to regulators in Britain that it would not give preferential treatment to its own products.
The company did not offer a definitive timeline for eliminating Advertising ID, but it committed to keeping the existing system in place for two years. Google said it would offer preview versions of its new proposals to advertisers, before releasing a more complete test version this year.
Mr. Zuckerberg has since turned to Mr. Bosworth for major initiatives. In 2012, Mr. Bosworth was given the task of building out Facebook’s mobile advertising products. After management issues at the Oculus virtual reality division, Mr. Zuckerberg dispatched Mr. Bosworth in August 2017 to take over the initiative. The virtual reality business was later rebranded Reality Labs.
In October, the company said it would create 10,000 metaverse-related jobs in the European Union over the next five years. That same month, Mr. Zuckerberg announced he was changing Facebook’s name to Meta and pledged billions of dollars to the effort.
Reality Labs is now at the forefront of the company’s shift to the metaverse, employees said. Workers in products, engineering and research have been encouraged to apply to new roles there, they said, while others have been elevated from their jobs in social networking divisions to lead the same functions with a metaverse emphasis.
Of the more than 3,000 open jobs listed on Meta’s website, more than 24 percent are now for roles in augmented or virtual reality. The jobs are in cities including Seattle, Shanghai and Zurich. One job listing for a “gameplay engineering manager” for Horizon, the company’s free virtual reality game, said the candidate’s responsibilities would include imagining new ways to experience concerts and conventions.
Internal recruitment for the metaverse ramped up late last year, three Meta engineers said, with their managers mentioning job openings on metaverse-related teams in December and January. Others who didn’t get on board with the new mission left. One former employee said he resigned after feeling like his work on Instagram would no longer be of value to the company; another said they did not think Meta was best placed for creating the metaverse and was searching for a job at a competitor.
What Is the Metaverse, and Why Does It Matter?
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The origins. The word “metaverse” describes a fully realized digital world that exists beyond the one in which we live. It was coined by Neal Stephenson in his 1992 novel “Snow Crash,” and the concept was further explored by Ernest Cline in his novel “Ready Player One.”
The future. Many people in tech believe the metaverse will herald an era in which our virtual lives will play as important a role as our physical realities. Some experts warn that it could still turn out to be a fad or even dangerous.
Meta also lured away dozens of employees from companies like Microsoft and Apple, two people with knowledge of the moves said. In particular, Meta hired from those companies’ divisions that worked on augmented reality products, like Microsoft’s Hololens and Apple’s secretive augmented reality glasses project.
Representatives for Microsoft and Apple declined to comment. Bloomberg and The Wall Street Journal previously reported on some of the personnel moves.