lawsuit against Facebook that argued the company shut down nascent competition through acquisitions. The Justice Department has also sued Google over whether the company abused a monopoly over online search.

More cases could be coming. The F.T.C. is investigating whether Amazon has violated antitrust laws, and the Justice Department has inquiries into Google’s dominance over advertising technology and into Apple’s App Store policies.

For Mr. Zuckerberg, the F.T.C. lawsuit is a setback. He has been pushing Meta away from its roots in social networking as its apps, like Facebook and Instagram, face more competition amid stumbles in privacy and content moderation. Instead, he has bet on the metaverse.

Mr. Zuckerberg has reassigned employees and put a top lieutenant in charge of metaverse efforts. He has also authorized executives to pursue some of the most popular games in the V.R. space. In 2019, Facebook purchased Beat Games, makers of the hit title Beat Saber, one of the top V.R. games on the Oculus platform. He has also authorized the purchase of roughly half a dozen other virtual reality or gaming studios over the past three years.

The F.T.C. filed suit on Wednesday hours before Meta reported its first decline in quarterly revenue since it went public in 2012. The company has recently trimmed employee perks and reined in spending amid uncertain economic conditions. John Newman, the deputy director of the F.T.C.’s Bureau of Competition, said the agency acted on the Within deal because Meta was “trying to buy its way to the top.” The company already owned a best-selling virtual reality fitness app, he said, but then chose to acquire Within’s Supernatural app “to buy market position.” He said the deal was “an illegal acquisition, and we will pursue all appropriate relief.”

The F.T.C.’s vote to authorize the filing was split 3 to 2. Christine Wilson, a Republican commissioner at the agency, said she was one of the two votes against the lawsuit. She declined to comment on her reasoning.

The F.T.C. said in its request that asking for an injunction was sometimes a prelude to filing a complaint against a merger, which could embroil Meta and the agency in a lengthy trial and appeals process. A F.T.C. spokeswoman said the agency had not filed such a complaint and declined to comment further on the agency’s strategy.

Ms. Khan, 33, who was appointed by President Biden last year to acclaim from the left, has tried to make good on expansive promises to rein in corporate power. She became prominent after she wrote an article in law school in 2017 criticizing Amazon. As F.T.C. chair, she has called for regulators to vigorously enforce antitrust laws and has said she may craft sweeping online privacy rules that would implicate Silicon Valley companies.

The lawsuit drew praise from Ms. Khan’s allies. Sandeep Vaheesan, the legal director of the Open Markets Institute, a liberal think tank, said in a statement that the lawsuit was a “step toward making building, not buying, the norm for Facebook.”

But tech industry allies assailed Ms. Khan’s actions. Adam Kovacevich, the chief executive of Chamber of Progress, an industry group funded partly by Meta, said that with the new lawsuit, “the agency is more focused on getting headlines than results.” He said Meta “isn’t any closer than pickleball or synchronized swimming are to locking up the fitness market.”

Meta said in a blog post that the F.T.C. would fail to prove that the Within deal would “substantially lessen competition,” which is the bar that is typically set to block a deal under federal antitrust law.

In its lawsuit, the F.T.C. said that if Meta bought Within’s Supernatural, it would no longer have an incentive to improve Beat Saber, the virtual reality fitness game it already owns. But Nikhil Shanbhag, an associate general counsel for Meta, said in the blog post that the games weren’t competitors.

“Beat Saber is a game people play to have fun and it has many competitors,” he said. “Supernatural couldn’t be more different.”

Seamus Hughes contributed research.

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Facebook Parent Meta Posts First Revenue Decline In History

By Associated Press
July 27, 2022

The company is down 36% from $10.39 billion, or $3.61 per share, in the same period a year ago.

Facebook and Instagram’s parent company Meta posted its first revenue decline in history Thursday, dragged by a drop in ad spending as the economy falters — and as competition from rival TikTok intensifies.

The company’s stock dropped slightly in after-hours trading following the results, suggesting Wall Street was largely expecting the weak earnings report.

The results also largely followed a broader decline in the digital advertising market that is dinging rivals such as Alphabet and Snap. Google’s parent company reported its slowest quarterly growth in two years on Tuesday.

Meta also faces some unique challenges, including the looming departure of its chief operating officer Sheryl Sandberg, the chief architect of the company’s massive advertising business.

In addition to TikTok, the decline in ad spending among the downturn and Apple’s privacy changes, “questions about Meta’s leadership” — including Sandberg’s exit and negative sentiment about the company as a whole — also contributed to the decline, said Raj Shah, a managing partner at digital consultancy Publicis Sapient.

Meta earned profits of $6.69 billion, or $2.46 per share, in the April-June period. That’s down 36% from $10.39 billion, or $3.61 per share, in the same period a year ago.

Revenue was $28.82 billion, down 1% from $29.08 billion a year earlier.

Analysts, on average, were expecting earnings of $2.54 per share on revenue of $28.91 billion, according to a poll by FactSet.

“The year-over-year drop in quarterly revenue signifies just how quickly Meta’s business has deteriorated,” said Insider Intelligence analyst Debra Aho Williamson in an email. “Prior to these results, we had forecasted that Meta’s worldwide ad revenue would increase 12.4% this year, to nearly $130 billion. Now, it’s unlikely to reach that figure.”

She added that the good news — if it could be called that — is that Meta’s competitors are also experiencing slowdowns.

Meta is in the midst of a corporate transformation that will take years to complete. It wants to evolve from social media to the “metaverse” — a risky bet that’s still in its nascent stage. The metaverse is sort of the internet brought to life, or at least rendered in 3D. CEO Mark Zuckerberg has described it as a “virtual environment” in which you can immerse yourself instead of just staring at a screen. The company is investing billions on its metaverse plans that will likely take years to pay off — and as part of its plan renamed itself Meta last fall.

“Expect Meta’s decline to continue until Meta can monetize the metaverse, and begin another Meta-reverse,” Shah said.

Meta’s forecast revenue of $26 billion to $28.5 billion for the current quarter, which is below Wall Street’s expectations.

“This outlook reflects a continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty,” finance chief David Wehner said in a statement. Meta said Wehner is being promoted to chief strategy officer, where he will oversee the company’s strategy and corporate development. Susan Li, currently vice president of finance, will replace him as CFO.

Shares of Meta Platforms Inc. fell 58 cents to $169 in after-hours trading.

Additional reporting by The Associated Press.

: newsy.com

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How Mark Zuckerberg Is Leading Meta Into Its Next Phase

SAN FRANCISCO — Mark Zuckerberg, the founder and chief executive of the company formerly known as Facebook, called his top lieutenants for the social network to a last-minute meeting in the San Francisco Bay Area this month. On the agenda: a “work-athon” to discuss the road map for improving the main Facebook app, including a revamp that would change how users browse the service.

For weeks beforehand, Mr. Zuckerberg had sent his executives messages about the overhaul, pressing them to increase the velocity and execution of their work, people with knowledge of the matter said. Some executives — who had to read a 122-page slide deck about the changes — were beginning to sweat at the unusual level of intensity, they said.

Facebook’s leaders flew in from around the world for the summit, the people said, and Mr. Zuckerberg and the group pored over each slide. Within days, the team unveiled an update to the Facebook app to better compete with a top rival, TikTok.

trimmed perks, reshuffled his leadership team and made it clear he would cut low-performing employees. Those who are not on board are welcome to leave, he has said. Managers have sent out memos to convey the seriousness of the approach — one, which was shared with The New York Times, had the title “Operating With Increased Intensity.”

the so-called metaverse. Across Silicon Valley, he and other executives who built what many refer to as Web 2.0 — a more social, app-focused version of the internet — are rethinking and upending their original vision after their platforms were plagued by privacy stumbles, toxic content and misinformation.

The moment is reminiscent of other bet-the-company gambles, such as when Netflix killed off its DVD-mailing business last decade to focus on streaming. But Mr. Zuckerberg is making these moves as Meta’s back is against the wall. The company is staring into the barrel of a global recession. Competitors like TikTok, YouTube and Apple are bearing down.

And success is far from guaranteed. In recent months, Meta’s profits have fallen and revenue has slowed as the company has spent lavishly on the metaverse and as the economic slowdown has hurt its advertising business. Its stock has plunged.

“When Mark gets super focused on something, it becomes all hands on deck within the company,” said Katie Harbath, a former Facebook policy director and the founder of Anchor Change, a consulting firm that works on tech and democracy issues. “Teams will quickly drop other work to pivot to the issue at hand, and the pressure is intense to move fast to show progress.”

Andrew Bosworth, who is known as Boz, to chief technology officer, leading hardware efforts for the metaverse. He promoted other loyalists, too, including Javier Olivan, the new chief operating officer; Nick Clegg, who became president of global affairs; and Guy Rosen, who took on a new role of chief information security officer.

In June, Sheryl Sandberg, who was Mr. Zuckerberg’s No. 2 for 14 years, said she would step down this fall. While she spent more than a decade building Facebook’s advertising systems, she was less interested in doing the same for the metaverse, people familiar with her plans have said.

Mr. Zuckerberg has moved thousands of workers into different teams for the metaverse, training their focus on aspirational projects like hardware glasses, wearables and a new operating system for those devices.

“It’s an existential bet on where people over the next decade will connect, express and identify with one another,” said Matthew Ball, a longtime tech executive and the author of a book on the metaverse. “If you have the cash, the engineers, the users and the conviction to take a swing at that, then you should.”

But the efforts are far from cheap. Facebook’s Reality Labs division, which is building augmented and virtual reality products, has dragged down the company’s balance sheet; the hardware unit lost nearly $3 billion in the first quarter alone.

privacy changes from Apple that have hampered its ability to measure the effectiveness of ads on iPhones. TikTok, the Chinese-owned video app, has stolen young audiences from Meta’s core apps like Instagram and Facebook. These challenges are coinciding with a brutal macroeconomic environment, which has pushed Apple, Google, Microsoft and Twitter to freeze or slow hiring.

a memo last month, Chris Cox, Meta’s chief product officer, said the economic environment called for “leaner, meaner, better executing teams.”

In an employee meeting around the same time, Mr. Zuckerberg said he knew that not everyone would be on board for the changes. That was fine, he told employees.

“I think some of you might decide that this place isn’t for you, and that self-selection is OK with me,” Mr. Zuckerberg said. “Realistically, there are probably a bunch of people at the company who shouldn’t be here.”

Another memo circulated internally among workers this month was titled “Operating With Increased Intensity.” In the memo, a Meta vice president said managers should begin to “think about every person on their team and the value they are adding.”

“If a direct report is coasting or a low performer, they are not who we need; they are failing this company,” the memo said. “As a manager, you cannot allow someone to be net neutral or negative for Meta.”

investment priorities” for the company in the second half of this year.

other prototypes. Bloomberg reported earlier on the smart watch.

posted an update to his Facebook profile, noting some coming changes in the app. Facebook would start pushing people into a more video-heavy feed with more suggested content, emulating how TikTok operates.

Meta has been investing heavily in video and discovery, aiming to beef up its artificial intelligence and to improve “discovery algorithms” that suggest engaging content to users without them having to work to find it.

In the past, Facebook has tested major product updates with a few English-speaking audiences to see how they perform before rolling them out more widely. But, this time, the 2.93 billion people around the world who use the social networking app will receive the update simultaneously.

It is a sign, some Meta employees said, of just how much Mr. Zuckerberg means business.

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As Midterms Loom, Mark Zuckerberg Shifts Focus Away From Elections

Mark Zuckerberg, Facebook’s chief executive, made securing the 2020 U.S. election a top priority. He met regularly with an election team, which included more than 300 people from across his company, to prevent misinformation from spreading on the social network. He asked civil rights leaders for advice on upholding voter rights.

The core election team at Facebook, which was renamed Meta last year, has since been dispersed. Roughly 60 people are now focused primarily on elections, while others split their time on other projects. They meet with another executive, not Mr. Zuckerberg. And the chief executive has not talked recently with civil rights groups, even as some have asked him to pay more attention to the midterm elections in November.

Safeguarding elections is no longer Mr. Zuckerberg’s top concern, said four Meta employees with knowledge of the situation. Instead, he is focused on transforming his company into a provider of the immersive world of the metaverse, which he sees as the next frontier of growth, said the people, who were not authorized to speak publicly.

hearings on the Jan. 6 Capitol riot have underlined how precarious elections can be. And dozens of political candidates are running this November on the false premise that former President Donald J. Trump was robbed of the 2020 election, with social media platforms continuing to be a key way to reach American voters.

2000 Mules,” a film that falsely claims the 2020 election was stolen from Mr. Trump, was widely shared on Facebook and Instagram, garnering more than 430,000 interactions, according to an analysis by The New York Times. In posts about the film, commenters said they expected election fraud this year and warned against using mail-in voting and electronic voting machines.

$44 billion sale to Elon Musk, three employees with knowledge of the situation said. Mr. Musk has suggested that he wants fewer rules about what can and cannot be posted on the service.

barred Mr. Trump from its platforms after the riot at the U.S. Capitol on Jan. 6, 2021, has worked over the years to limit political falsehoods on its sites. Tom Reynolds, a Meta spokesman, said the company had “taken a comprehensive approach to how elections play out on our platforms since before the U.S. 2020 elections and through the dozens of global elections since then.”

recently raised doubts about the country’s electoral process. Latvia, Bosnia and Slovenia are also holding elections in October.

“People in the U.S. are almost certainly getting the Rolls-Royce treatment when it comes to any integrity on any platform, especially for U.S. elections,” said Sahar Massachi, the executive director of the think tank Integrity Institute and a former Facebook employee. “And so however bad it is here, think about how much worse it is everywhere else.”

Facebook’s role in potentially distorting elections became evident after 2016, when Russian operatives used the site to spread inflammatory content and divide American voters in the U.S. presidential election. In 2018, Mr. Zuckerberg testified before Congress that election security was his top priority.

banning QAnon conspiracy theory posts and groups in October 2020.

Around the same time, Mr. Zuckerberg and his wife, Priscilla Chan, donated $400 million to local governments to fund poll workers, pay for rental fees for polling places, provide personal protective equipment and cover other administrative costs.

The week before the November 2020 election, Meta also froze all political advertising to limit the spread of falsehoods.

But while there were successes — the company kept foreign election interference off the platform — it struggled with how to handle Mr. Trump, who used his Facebook account to amplify false claims of voter fraud. After the Jan. 6 riot, Facebook barred Mr. Trump from posting. He is eligible for reinstatement in January.

Frances Haugen, a Facebook employee turned whistle-blower, filed complaints with the Securities and Exchange Commission accusing the company of removing election safety features too soon after the 2020 election. Facebook made growth and engagement its priorities over security, she said.

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.”

Mr. Zuckerberg no longer meets weekly with those focused on election security, said the four employees, though he receives their reports. Instead, they meet with Nick Clegg, Meta’s president of global affairs.

Several civil right groups said they had noticed Meta’s shift in priorities. Mr. Zuckerberg isn’t involved in discussions with them as he once was, nor are other top Meta executives, they said.

“I’m concerned,” said Derrick Johnson, president of the National Association for the Advancement of Colored People, who talked with Mr. Zuckerberg and Sheryl Sandberg, Meta’s chief operating officer, ahead of the 2020 election. “It appears to be out of sight, out of mind.” (Ms. Sandberg has announced that she will leave Meta this fall.)

wrote a letter to Mr. Zuckerberg and the chief executives of YouTube, Twitter, Snap and other platforms. They called for them to take down posts about the lie that Mr. Trump won the 2020 election and to slow the spread of election misinformation before the midterms.

Yosef Getachew, a director at the nonprofit public advocacy organization Common Cause, whose group studied 2020 election misinformation on social media, said the companies had not responded.

“The Big Lie is front and center in the midterms with so many candidates using it to pre-emptively declare that the 2022 election will be stolen,” he said, pointing to recent tweets from politicians in Michigan and Arizona who falsely said dead people cast votes for Democrats. “Now is not the time to stop enforcing against the Big Lie.”

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Sheryl Sandberg Steps Down From Facebook’s Parent Company, Meta

Ms. Sandberg flirted with leaving Facebook. In 2016, she told colleagues that if Hillary Clinton, the Democratic presidential nominee, won the White House she would most likely assume a job in Washington, three people who spoke to her about the move at the time said. In 2018, after revelations about Cambridge Analytica and Russia’s interference in the 2016 U.S. presidential election, she again told colleagues that she was considering leaving but did not want to do so when the company was in crisis.

Last year, Mr. Zuckerberg said his company was making a new bet and was going all in on the metaverse, which he called “the successor to the mobile internet.” In his announcement, Ms. Sandberg made only a cameo, while other executives were more prominently featured.

As Mr. Zuckerberg overhauled the company to focus on the metaverse, some of Ms. Sandberg’s responsibilities were spread among other executives. Nick Clegg, the president of global affairs and a former British deputy prime minister, became the company’s chief spokesman, a role that Ms. Sandberg had once taken. In February, Mr. Clegg was promoted to president of global affairs for Meta.

Ms. Sandberg’s profile dimmed. She concentrated on building the ads business and growing the number of small businesses on Facebook.

She was also focused on personal matters. Dave Goldberg, her husband, had died unexpectedly in 2015. (Ms. Sandberg’s second book, “Option B,” was about dealing with grief.) She later met Mr. Bernthal, and he and his three children moved to her Silicon Valley home from Southern California during the pandemic. Ms. Sandberg, who had two children with Mr. Goldberg, was focused on integrating the families and planning for her summer wedding, a person close to her said.

Meta’s transition to the metaverse has not been easy. The company has spent heavily on metaverse products while its advertising business has stumbled, partly because privacy changes made by Apple have hurt targeted advertising. In February, Meta’s market value plunged more than $230 billion, its biggest one-day wipeout, after it reported financial results that showed it was struggling to make the leap to the metaverse.

In the interview, Ms. Sandberg said Meta faced near-term challenges but would weather the storm, as it had during past challenges. “When we went public, we had no mobile ads,” Ms. Sandberg said, citing the company’s rapid transition from desktop computers to smartphones last decade. “We have done this before.”

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As Stocks Fall, Economic Fears Rise, Along With Inflation

Broadly speaking, earnings reports have shown that profit growth continues, and results from some big firms, like Microsoft and Facebook’s parent, Meta Platforms, did briefly ease the panic on Wall Street. About 80 percent of companies in the S&P 500 to report results through Thursday did better than analysts had expected, data from FactSet shows.

But other companies have only added to the downdraft. Netflix plunged after it said last week that it expected to lose subscribers — 200,000 in the first three months of the year, and an additional two million in the current quarter. The stock dropped more than 49 percent for the month.

On Friday, Amazon slid 14.1 percent after it reported its first quarterly loss since 2015, citing rising fuel and labor costs and warning that sales would slow. Its shares fell 23.8 percent in April.

General Electric warned on Tuesday that the economic fallout from Russia’s invasion of Ukraine would weigh on its results. Its shares fell 10 percent that day and about 18.5 percent for the month.

The war, which began in February, brought a new risk to the fragile global supply chain: Western countries’ sanctions on Russia, including a ban on oil imports from the country by the United States, and European promises to limit purchases of Russian oil and gas.

Now, executives are also assessing how the Covid-19 lockdowns in China, which has the world’s second-largest economy, could affect profit margins. Multiple Chinese cities are on lockdown, and although factories remain open, the country’s draconian “zero Covid” policy has led to interruptions in shipments and delays in delivery times.

Texas Instruments Inc. and the machinery maker Caterpillar cautioned investors this week that the lockdowns in China were affecting the company’s manufacturing operations. On Thursday, Apple also warned that the outbreak there would hamper demand and production of iPhones and other products. The company’s shares fell 3.7 percent on Friday, and ended April with a loss of 9.7 percent.

The outlook for the economy, the effects of the Ukraine invasion, the lockdowns in China and exactly how fast the Fed will raise interest rates are still not clear. Markets are likely to stay volatile until they are.

“There are definitely a lot of open-ended and unquantified risks looming,” said Victoria Greene, the chief investment officer at G Squared Private Wealth, an advisory firm. “The U.S. economy lives and dies for the consumer, and as soon as this consumer starts to slow down, I think that will hit the economy hard.”

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How Tech Companies Are Trying to Woo Employees Returning to Work

When Google employees returned to their mostly empty offices this month, they were told to relax. Office time should be “not only productive but also fun.” Explore the place a little. Don’t book back-to-back meetings.

Also, don’t forget to attend the private show by Lizzo, one of the hottest pop stars in the country. If that’s not enough, the company is also planning “pop-up events” that will feature “every Googler’s favorite duo: food and swag.”

But Google employees in Boulder, Colo., were still reminded of what they were giving up when the company gave them mouse pads with the image of a sad-eyed cat. Underneath the pet was a plea: “You’re not going to RTO, right?”

R.T.O., for return to office, is an abbreviation born of the pandemic. It is a recognition of how Covid-19 forced many companies to abandon office buildings and empty cubicles. The pandemic proved that being in the office does not necessarily equal greater productivity, and some firms continued to thrive without meeting in person.

a happy hour with its chief executive, Cristiano Amon, at its San Diego offices for several thousand employees with free food, drink and T-shirts. The company also started offering weekly events such as pop-up snack stands on “Take a Break Tuesday” and group fitness classes for “Wellness Wednesday.”

the surveys, is that employees want to see colleagues in person.

After a number of postponements, Google kicked off its hybrid work schedule on April 4, requiring most employees to show up at U.S. offices a few days a week. Apple started easing staff back to the office on Monday, with workers expected to check in at the office once a week at first.

reimburse $49 monthly leases for an electric scooter as part of its transportation options for staff. Google also plans to also start experimenting with different office designs to adapt to changing work styles.

When Microsoft employees returned to their offices in February as part of a hybrid work schedule, they were greeted with “appreciation events” and lawn games such as cornhole and life-size chess. There were classes for spring basket making and canvas painting. The campus pub transformed into a beer, wine and “mocktail” garden.

And, of course, there was free food and drink: pizzas, sandwiches and specialty coffees. Microsoft paid for food trucks with offerings including fried chicken, tacos, gyros, Korean food and barbecue.

Unlike other technology companies, Microsoft expects employees to pay for their own food at the office. One employee marveled at how big a draw the free food was.

signed a letter urging management to be more open to flexible work arrangements. It was a rare show of dissent from the company’s rank-and-file, who historically have been less willing to openly challenge executives on workplace matters.

But as tech companies grapple with offering employees greater work flexibility, the firms are also scaling back some office perks.

cutting back or eliminating free services like laundry and dry cleaning. Google, like some other companies, has said it approved requests from thousands of employees to work remotely or transfer to a different office. But if employees move to a less expensive location, Google is cutting pay, arguing that it has always factored in where a person was hired in setting compensation.

Clio, a legal software company in Burnaby, British Columbia, won’t force its employees back to the office. But last week, it gave a party at its offices.

There was upbeat music. There was an asymmetrical balloon sculpture in Clio’s signature bright blue, dark blue, coral and white — perfect for selfies. One of Clio’s best-known workers donned a safari costume to give tours of the facility. At 2 p.m., the company held a cupcake social.

To make its work spaces feel more like home, the company moved desks to the perimeter, allowing Clions — what the company calls its employees — to gaze out at the office complex’s cherry blossoms while banging out emails. A foosball table was upgraded to a workstation with chairs on either end, “so you could have a meeting while playing foosball with your laptop on it,” said Natalie Archibald, Clio’s vice president of people.

Clio’s Burnaby office, which employs 350, is open at only half capacity. Spaced-out desks must be reserved, and employees got red, yellow and green lanyards to convey their comfort levels with handshakes.

Only around 60 people came in that Monday. “To be able to have an IRL laugh rather than an emoji response,” Ms. Archibald said. “People are just excited for that.”

Karen Weise contributed reporting.

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How You’re Still Being Tracked on the Internet

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.”

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Ukrainian Minister Has Turned Digital Tools Into Modern Weapons of War

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.

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