Metaverse

Meta prepares to launch ads on Threads app in early 2024

Meta Platforms is gearing up to introduce advertising to its Threads app early next year, aiming to tap into a new revenue stream while competing with X (formerly Twitter). The Information reported that a limited number of advertisers will be allowed to publish ads on Threads starting in January, with the initiative spearheaded by Instagram’s advertising team. Threads, which launched in July 2023 amidst the upheaval at X under Elon Musk’s ownership, has rapidly grown to 275 million monthly active users, as announced by CEO Mark Zuckerberg in October.

Despite the app’s quick expansion, Meta remains cautious about its immediate profitability. CFO Susan Li, during a recent post-earnings call, indicated that Threads is not expected to be a significant revenue driver by 2025. She emphasised that the company is prioritising consumer value, and monetisation features are not yet a primary focus. A Meta spokesperson echoed this sentiment, confirming that Threads currently has no ads or monetisation strategies.

The timing for the introduction of ads on Threads could be opportune, given the instability at X. Since Elon Musk‘s acquisition of X, the platform has experienced disruptions and a decline in ad revenue, as some advertisers feared their brands could appear alongside controversial or harmful content. Musk’s management style and significant policy changes prompted many brands to reconsider ad spending on the site. Notably, X has taken legal action against a global advertising alliance and some major companies, accusing them of conspiring to boycott the platform and contributing to revenue losses.

Meta‘s plans to monetise Threads come as it seeks to entice disillusioned advertisers from X. However, the company is carefully balancing the need to develop Threads as a welcoming and user-friendly environment while exploring advertising opportunities. The rollout of ads and additional features is set to shape how Threads evolves as a major social media contender in the years to come.

EU hits Meta with $800M antitrust fine

Meta, the parent company of Facebook, has been fined nearly €800M by the European Union for anti-competitive practices related to its Marketplace feature. The European Commission accused the tech giant of abusing its dominant position by tying Marketplace to Facebook’s social network, forcing exposure to the service and disadvantaging competitors.

This marks the first time the EU has penalised Meta for breaching competition laws, though the company has faced previous fines for privacy violations. The investigation found that Meta unfairly used data from competitors advertising on Facebook and Instagram to benefit its own Marketplace, giving it an edge that rivals couldn’t match.

Meta rejected the claims, arguing that the decision lacks evidence of harm to competition or consumers. While the company pledged to comply with the EU’s order to cease the conduct, it plans to appeal the ruling. The case highlights ongoing EU scrutiny of Big Tech, with Meta facing additional investigations on issues like privacy, child safety, and election integrity.

Meta to give European users more control over personalised ads

Meta Platforms announced it will soon give Instagram and Facebook users in Europe the option to receive less personalised ads. The decision comes in response to pressure from EU regulators and aims to address concerns about data privacy and targeted advertising. Instead of highly tailored ads, users will be shown adverts based on general factors like age, gender, and location, as well as the content they view in a given session.

The move aligns with the European Union‘s push to regulate major tech companies, supported by legislation like the Digital Markets Act (DMA), which was introduced earlier this year to promote fair competition and enhance user privacy. Additionally, Meta will offer a 40% price reduction on ad-free subscriptions for European customers.

The changes follow a recent ruling by Europe’s highest court, which supported privacy activist Max Schrems and ruled that Meta must limit the use of personal data from Facebook for advertising purposes. Meanwhile, the European Union is set to fine Apple under these new antitrust rules, marking a significant step in the enforcement of stricter regulations for Big Tech.

EU and UK universities begin metaverse classes

Universities across the EU and UK are set to introduce metaverse-based courses, where students can attend classes in digital replicas of their campuses. Meta, the company behind Facebook and Instagram, announced the launch of Europe’s first ‘metaversities,’ immersive digital twins of real university campuses. With the help of Meta’s VR partner VictoryXR, students can explore campus grounds, work on projects, and participate in simulations from their VR headsets or PCs, offering a more interactive experience than traditional video calls.

Several institutions are embracing the metaverse: the UK’s University of Leeds started metaverse courses in theater this fall, while Spain’s University of the Basque Country will introduce virtual physiotherapy and anatomy classes by February 2025. In Germany, schools in Hannover will launch immersive classes by the start of the 2025 school year. VictoryXR, which has collaborated with over 130 campuses worldwide, sees these “digital twin” campuses as ideal for field trips, group experiments, and real-time assignments.

Meta has provided VR headsets to educators at numerous universities in the US and UK, including Imperial College London, to encourage innovative teaching in fields such as science and language arts. According to Meta, these metaversities mark a ‘significant leap forward’ in education, creating interactive and engaging learning environments.

AR studio closed as Meta prioritises AI and metaverse

Meta Platforms has announced plans to shut down its augmented reality studio, Meta Spark, which allowed third-party creators to design custom effects for Instagram and Facebook. The platform will close on 14 January, removing third-party AR effects such as filters, masks, and 3D objects created using the studio. However, their first-party AR effects will remain on its platforms, including Instagram, Facebook, and Messenger.

The decision aligns with Meta’s broader strategy to prioritise investments in AI and the metaverse, a virtual environment the company views as the future of the internet. In a blog post, the company confirmed that resources would now focus on developing the next generation of experiences, particularly in new factors like AR glasses. The shift in strategy has left many third-party creators, who relied on Meta Spark, searching for alternatives.

Many creators have expressed disappointment at the platform’s closure, with some considering moving to other AR creation tools like Snapchat’s Lens Studio or Unity. Despite the discontinuation, the tech giant reassured users that existing reels and stories featuring third-party AR effects will remain accessible. However, the Meta Spark Hub and studio files will no longer be available after the shutdown.

In recent months, the company has also announced the phasing out of other projects, such as its work-focused Workplace app, which will cease customer operation by June 2026. The company’s strategic focus on AI and emerging technologies reflects its ongoing efforts to redefine its core business in an increasingly competitive tech landscape.

Zuckerberg apologises for Facebook photo error involving Trump

Former President Donald Trump revealed that Meta CEO Mark Zuckerberg apologised to him after Facebook mistakenly labelled a photo of Trump as misinformation. The photo, which showed Trump raising a fist after surviving an assassination attempt at a rally in Butler, Pennsylvania, was initially flagged by Meta’s AI system. Trump disclosed the apology during an interview with FOX Business’ Maria Bartiromo, stating that Zuckerberg called him twice to express regret and praise his response to the event.

Meta Vice President of Global Policy Joel Kaplan clarified that the error occurred due to similarities between a doctored image and the real photo, leading to an incorrect fact-check label. Kaplan explained that the AI system misapplied the label due to subtle differences between the two images. Meta’s spokesperson Andy Stone reiterated that Zuckerberg has not endorsed any candidate for the 2024 presidential election and that the labelling error was not due to bias.

The incident highlights ongoing challenges for Meta as it navigates content moderation and political neutrality, especially ahead of the 2024 United States election. Additionally, the assassination attempt on Trump has sparked various online conspiracy theories. Meta’s AI chatbot faced criticism for initially refusing to answer questions about the shooting, a decision attributed to the overwhelming influx of information during breaking news events. Google’s AI chatbot Gemini similarly refused to address the incident, sticking to its policy of avoiding responses on political figures and elections.

Both Meta and Google have faced scrutiny over their handling of politically sensitive content. Meta’s recent efforts to shift away from politics and focus on other areas, combined with Google’s cautious approach to AI responses, reflect the tech giants’ strategies to manage the complex dynamics of information dissemination and political neutrality in an increasingly charged environment.

Meta’s AI bots aim to support content creators

Meta CEO Mark Zuckerberg has proposed a vision where AI bots assist content creators with audience engagement, aiming to free up their time for more crucial tasks. In an interview with internet personality Rowan Cheung, Zuckerberg discussed how these AI bots could capture the personalities and business objectives of creators, allowing fans to interact with them as if they were the creators themselves.

Zuckerberg’s optimism aligns with many in the tech industry who believe AI can significantly enhance the impact of individuals and organizations. However, there are concerns about whether creators, whose audiences value authenticity, will embrace generative AI. Meta’s initial rollout of AI-powered bots earlier this year faced issues, including bots making false claims and providing misleading information, raising questions about the technology’s reliability.

Meta claims improvements with its latest AI model, Llama 3.1, but challenges such as hallucinations and planning errors persist. Zuckerberg acknowledges the need to address these concerns and build trust with users. Despite these hurdles, Meta continues to focus on integrating AI into its platforms while also pursuing its Metaverse ambitions and competing in the tech space.

Meta’s plans to introduce generative AI to its apps dating back to 2023, along with its increased focus on AI amid Metaverse ambitions highlight the company’s broader strategic vision. However, convincing creators to rely on AI bots for fan interaction remains a significant challenge.

Meta’s new strategy: AI-powered gaming experiences

Meta is set to integrate more generative AI technology into its virtual, augmented, and mixed-reality games, aiming to boost its struggling metaverse strategy. According to a recent job listing, the company plans to create new gaming experiences that change with each playthrough and follow unpredictable paths. The initiative will initially focus on Horizon, Meta’s suite of metaverse games and applications, but could extend to other platforms like smartphones and PCs.

These developments are part of Meta’s broader effort to enhance its metaverse offerings and address the financial challenges faced by Reality Labs, the division responsible for its metaverse projects. Despite selling millions of Quest headsets, Meta has struggled to attract users to its Horizon platform and mitigate substantial operating losses. Recently, the company began allowing third-party manufacturers to license Quest software features and increased investment in metaverse gaming, spurred by CEO Mark Zuckerberg’s growing interest in the field.

Meta’s interest in generative AI is not new. In 2022, Zuckerberg demonstrated a prototype called Builder Bot, which allows users to create virtual worlds with simple prompts. Additionally, Meta’s CTO, Andrew Bosworth, has highlighted the potential of generative AI tools to democratise content creation within the metaverse, likening their impact to that of Instagram on personal content creation.

Generative AI is already making waves in game development, with companies like Disney-backed Inworld using the technology to enhance game dialogues and narratives. While some game creators are concerned about the impact on their jobs, Meta is committed to significant investments in generative AI, even though CEO Zuckerberg cautioned that it might take years for these investments to become profitable.

Zuckerberg critiques closed-source AI development

In a recent interview, Mark Zuckerberg positioned Meta as a leading advocate for open-source AI, critiquing competitors for their closed-source approaches. Speaking on the YouTube channel Kallaway, Zuckerberg expressed his belief that individual companies should not monopolise AI technology to create singular products. Instead, he envisions a future with diverse AI options, supported by open-source principles.

Zuckerberg highlighted Meta’s commitment to open-source AI, emphasising the importance of empowering developers and users to contribute to and innovate within the AI ecosystem. However, some experts question Meta’s open-source claims. Amanda Brock, CEO of OpenUK, argued that Meta’s Llama model is only partially open-source due to certain commercial stipulations. Similarly, Gartner analyst Arun Chandrasekaran noted Meta’s competitive constraints that limit the openness of its models.

Meta is not alone in promoting open-source AI. French startup Mistral AI and Databricks have also made strides in this area, though their offerings include restrictions. The Linux Foundation has announced the Open Platform for Enterprise AI (OPEA) to standardise open-source definitions in AI, reflecting a broader industry movement towards clarity and true openness in AI development.

China’s top prosecutor warns cybercriminals are exploiting blockchain and metaverse projects

China’s Supreme People’s Procuratorate (SPP) is ramping up efforts to combat cybercrime by targeting criminals who use blockchain and metaverse projects for illegal activities. The SPP is alarmed by the recent surge in online fraud, cyber violence, and personal information infringement. Notably, the SPP has observed a significant rise in cybercrimes committed on blockchains and within the metaverse, with criminals increasingly relying on cryptocurrencies for money laundering, making it challenging to trace their illicit wealth.

Ge Xiaoyan, the Deputy Prosecutor-General of the SPP, highlights a 64% year-on-year increase in charges related to cybercrime-related telecom fraud, while charges linked to internet theft have risen nearly 23%, and those related to online counterfeiting and sales of inferior goods have surged by almost 86%. Procuratorates have pressed charges against 280,000 individuals involved in cybercrime cases between January and November, reflecting a 36% year-on-year increase and constituting 19% of all criminal offenses.

The People’s Bank of China (PBoC) acknowledges the importance of regulating cryptocurrency and decentralized finance in its latest financial stability report. The PBoC emphasizes the necessity of international cooperation in regulating the industry.

Despite the ban on most crypto transactions and cryptocurrency mining, mainland China remains a significant hub for crypto-mining activities.