TECH POLICY

States of Flux

Lately, states have been busier than Taylor Swift when it comes to Big Tech regulations. Let’s get you up to speed...

State your case 

Maryland: On Friday, the Crab Cake State became the first to introduce a digital advertising tax. The legislation is aimed at companies that bring in $100+ million a year from digital ads. FYI, Google’s ad revenue last year was $147 billion, with a B. 

Virginia: California has finally passed the torch, and Virginia is set to become the second state to pass a data privacy law. Starting Jan. 1, 2023, the Consumer Data Protection Act would target larger companies—for example, those that control or process data for at least 100k Virginia residents. 

North Dakota: Yesterday, North Dakota voted on a bill that could’ve changed app stores forever. It didn’t pass, but it did lay the groundwork for legislation that would prevent Apple and Google from mandating that companies in a state forfeit part of their app sales. 

And that’s not all: New York is mulling a bill that could make it easier to levy antitrust cases against Big Tech, and Florida proposed legislation this month that would limit social media content moderation. 

Call the Feds 

More and more states are proposing legislation that would cramp Big Tech’s style. It’s expensive, time-consuming, and complicated to juggle patchwork state laws—even for a tech monolith. 

Accordingly... For all the sector’s fighting against federal regulation, it looks like FAMGA would prefer one big thorn in its side to 50 smaller ones. 

• In 2019, Mark Zuckerberg said he backed federal privacy legislation, and CEOs from 50+ companies, including IBM, Qualcomm, and Salesforce, asked Congress to pass a federal privacy law.
• Tech giants don’t support antitrust regs, but they do spend tens of millions a year on lobbying and efforts to draft legislation on their own terms. 

Zoom in: You can think of this as trickle-down tech law. The restrictions, punishments, and fees are largely aimed at tech giants, but the laws will lead to effects for emerging tech startups, too. That could look like more room for innovation and competition. It could also mean fewer high-profile acquisitions (and fewer Big Tech-funded incubators). 

CRYPTO

50,000 Leagues Over the B

Jay Z, Jack Dorsey, and Elon Musk walk into a bar…and they pay in bitcoin. At this point, it wouldn’t surprise us if this actually happened once bars become a thing again. 

Trend-setter, record-breaker 

Yesterday morning, bitcoin surpassed the $50,000 mark, a first for the cryptocurrency. At time of writing, it hovered around $51,320. 

What pushed bitcoin over the historic edge? Some view it as a hedge against potential inflation. But importantly, more traditional institutions and high-profile figures than ever have thrown their weight behind bitcoin in recent weeks. 

• Jay Z and Jack Dorsey will put 500 bitcoin ($23+ million) into an endowment for bitcoin development, initially focused on Africa and India. 
• After purchasing $1.5 billion in bitcoin, Tesla will become the first automaker to accept it as payment. Uber is considering doing the same. 
• Mastercard will begin supporting crypto transactions in 2021, and BNY Mellon, the world’s largest custodian bank, plans to start holding, transferring, and issuing crypto this year. 

Big picture: Since it’s often looked to as an indicator of public opinion on crypto and decentralized tech, bitcoin’s rise is buoying some other digital currencies. 

SPONSORED BY ADOBE

AI Is Like Pilates

Pilates can be intimidating—what exactly do they do with that wheel on a leash? But it’s good for you, just like AI can be good for your business. 

If you want to know how, the fine folks at Magento Commerce have just the thing for you—”The Future of AI in Digital Commerce — The Next 5 Years,” a webinar on AI in today’s digital-first economy. 

Peter Sheldon, Adobe’s Senior Director of Commerce, will walk you through how AI can turbocharge your business like that leashed wheel can transform your obliques, with topics including: 

• Communicating the business case for AI 
• Using AI to personalize the customer experience 
• How AI can enhance fulfillment and digital merchandising 

By harnessing AI, your business can get fit and toned like a Pilates master.

Watch Magento’s webinar here.

MOBILITY

We Invite You to Begin Boarding at This Time

Good afternoon. This is your SPACtain speaking. Joby and Archer Aviation, two California-based electric plane startups, are next in line for takeoff. Please fasten your seatbelts. 

In the cockpit 

Joby, backed by JetBlue and Uber, is reportedly in talks to go public at a ~$5.7 billion valuation. And Archer Aviation is SPAC-ing at an equity valuation of ~$3.8 billion. 

These are short-haul aircraft (one charge = about 60 miles at 150 mph, in Archer’s case), so they’ll likely be rolled out as alternative transportation in urban hubs. 

Reality check 

Like any buzzy form of electric transport, there are logistical and technical barriers to mass adoption—range, charging infrastructure, and manufacturing. Archer and Joby haven’t yet mass-produced their electric vertical take-off and landing (eVTOL) aircraft, but they’re working on it...

In Joby’s corner: Toyota, its lead Series C investor, is advising Joby on all things development and manufacturing, though “more details of the prototype aircraft and production plans will be announced at a later date.” 

In Archer’s corner: United Airlines will help Archer accelerate production, then acquire up to 200 units to ferry customers to United's hub airports and offer an alternative way to commute “within the next five years.” 

No word yet on which will win the round.

BITS & BYTES

Stat: About 2,500 people control 40% of the Bitcoin market—approx. $240 billion, per The Telegraph. 

Quote: “We need to inflict pain.”—Zuck on Apple, WSJ reports.

Read: An excerpt from Bill Gates’s new book, How to Avoid a Climate Disaster. 

Another read: Decriminalization, the Democratic Party, and CBD all may impact your cannabis investing plans.* 

^{*This is sponsored advertising content.}

WHAT ELSE IS BREWING

• The White House is consulting Amazon, Google, and other tech giants about the vaccine rollout, Politico reports. 
• Parler is back, after a month offline. 
• Uncovered Fund, a Japanese VC firm, will back early-stage startups in Africa via its newly-launched $15 million fund. 
• GM debuted its redesigned Chevy Bolt EV, as well as the Chevy Bolt EUV, an all-electric utility vehicle. Both include Super Cruise, GM’s semi-autonomous driver-assist system.
• TikTok is facing a new batch of regulatory complaints in Europe. 
• Uber proposed “Prop 22”-style gig work reforms in the EU.
• Revel, the shared scooter startup, is adding e-bike subscriptions. 

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TRIVIA

No trivia this week, but we do have a quiz for you to take. BuzzFeed promises to “create your perfect boyfriend (or girlfriend) using AI technology.” 

Try it out here, and let us know how it goes. 

BLACK MIRROR IRL

Sometimes Black Mirror storylines seem like they're unfolding in real life. One that caught our eye this week: 

This summer, an exhibition at London’s Design Museum will feature drawings and paintings that serve as commentaries on AI and its future. The artist? A humanoid robot powered by AI and mechanical arms. 

“Ai-Da,” named for mathematician Ada Lovelace, will display three of its own self-portraits—and use facial recognition tech to create pencil portraits of people.

ICYMI

Catch up on the top Emerging Tech Brew stories from the past few editions: 

• Q&A with Skydio, an autonomous drone startup 
• Study: Apple Watch could flag potential Covid cases a week sooner than PCR tests
• Facial recognition tech is built on non-consensual personal data, according to research