Titans of tech Facebook, Google ‘crushing Middle East media’

Google’s New York city office. Global tech players have been accused of selling advertising in the Middle East at the cheapest possible price as they have already covered their infrastructure costs in their home countries. (AFP)
Updated 24 January 2019
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Titans of tech Facebook, Google ‘crushing Middle East media’

  • No restrictions and no taxation give advantage to Facebook and Google, fintech CEO says
  • While regional media outlets have to sell advertising simply to survive, mega-companies can afford to charge only rock-bottom rates

LONDON: The GCC must tackle the issue of global tech giants such as Facebook and Google making it impossible for media publishers in the Middle East to compete, according to an industry veteran.
While regional media outlets have to sell advertising simply to survive, mega-companies can afford to charge only rock-bottom rates, said analyst and publisher Julien Hawari, formerly joint CEO of Mediaquest and now CEO of Infak First Islamic FinTech Ecosystem.
The problem was not the rates charged for advertising but rather “dumping” in the region, he added.
“Global tech players have already covered their infrastructure costs in their home countries. At that point, any extra revenue becomes profit. Therefore they sell (advertising) in the region at the cheapest possible price (which) local players cannot compete with as they have to cover their own infrastructure costs.”
On a scale of one to 10, the costs to global firms would be “close to zero” and for local firms “closer to 10.”
Unlike publishers based in the Middle East, global companies were not constrained by local regulations or taxation and faced “no red lines or consequences,” Hawari told Arab News. “That policy by itself is pushing readers to global brands instead of staying with local media.”
The unfair advantage enjoyed by global tech companies “is adding insult to injury.”
Hawari first spoke out against the disparity between global and local media at the Top CEO conference in Jeddah last April, when he called for more government regulation and taxation on social media giants. This week he told Arab News “not much” had happened since then.

 

But the problem was ever more pressing.” “The GCC should address the issues and allow its local media to prosper instead of putting (in place) all those hurdles that will ultimately devastate the industry,” said Hawari.
Google said that it returns an average of 70 percent of income from digital advertising to its “publisher partners” worldwide and claims this helps to keep smaller publishers in business. In 2017, that “shared” advertising income amounted to $12.6 billion. However, the company offered no region-by-region breakdown.
Internet giants are invariably blamed for causing the slow demise of “traditional” news by taking content from publishers without paying for it and re-publishing it online. They also stand accused of disseminating inaccurate or “fake” news because they do not check facts and sources, and of giving prominence to more trivial, “clickbait” stories at the expense of serious news.
“Media organizations choose to post their own content themselves,” said Fares Akkad, Facebook’s head of media partnerships in the Middle East, Africa and Turkey. “It’s up to them how to place their content on Facebook and how they boost it.”
Both Google and Facebook have initiated training programs for journalists in Middle Eastern countries aimed at teaching them how to improve news gathering and production through the use of technology.
Facebook is investing $300 million over three years in grants to local news programs and content — “more on local than we ever spent before,” according to Akkad. However, data shared with Arab News shows that none of the money is going to the Middle East.
Google announced its training program for Saudi Arabia, the UAE, Egypt, Lebanon, Jordan and Tunisia last May in partnership with the International Center for Journalists (ICFJ) and recruited trainers from both journalism and tech. The courses in data journalism, immersive storytelling, safety and security and verification began in December with the aim of training 4,000 journalists by the summer.
The Google Digital News Initiative was set up to “support quality journalism” and “empower” news organizations to use new technology such as artificial intelligence (AI).
A spokesperson for Google said: “Google has long been committed to helping local news publishers and media companies to grow, from driving traffic to publishers’ websites for free and paying the majority revenue share back to them, to committing to training journalists on digital tools.”
Facebook has also teamed up with the ICFJ to train 2,500 journalists from Saudi Arabia, the UAE, Qatar, Jordan, Lebanon, Morocco and Tunisia in how to verify facts and online content, how to protect online information, how to use social media and “how to build a rapport with audiences and establish a loyal following.”
The first webinar is today.

FASTFACTS

Google said that it returns an average of 70 percent of income from digital advertising to its “publisher partners” worldwide.


South Sudan lifts suspension of Facebook and TikTok

Updated 28 January 2025
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South Sudan lifts suspension of Facebook and TikTok

  • Ban was imposed last week following the circulation of videos depicting the alleged killings of South Sudanese nationals in Sudan

JUBA: South Sudan authorities have lifted the temporary ban on Facebook and TikTok, which was imposed last week following the circulation of videos depicting the alleged killings of South Sudanese nationals in Sudan.
The graphic images, which sparked violent protests and retaliatory killings across the country, have been removed from the social media platforms, the National Communications Authority said in a Jan.27 letter to telecoms and Internet providers
“The rise of violence linked to social media content in South Sudan underscores the need for a balanced approach that addresses the root causes of online incitement while protecting the rights of the population,” Napoleon Adok Gai, the director of the National Communications Authority, said in the letter.
Rights groups blamed the Sudanese army and its allies for ethnically-targeted attacks on civilians in Sudan’s El Gezira state earlier this month, after they captured the state capital Wad Madani from the paramilitary Rapid Support Forces.
The Sudanese army condemned what it called “individual violations,” which were captured on video and shared widely on social media.


Pakistan outlaws disinformation with 3-year jail term

Updated 28 January 2025
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Pakistan outlaws disinformation with 3-year jail term

  • The law was rushed through the National Assembly with little warning last week

ISLAMBAD: Pakistan criminalized online disinformation on Tuesday, passing legislation that enshrines punishments of up to three years in prison, a decision journalists say is designed to crack down on dissent.
“I have heard more ‘yes’ than ‘no’, so the bill is approved,” Syedaal Khan, deputy chair of Pakistan’s Senate, said amid protest from the opposition and journalists, who walked out of the gallery.
The law targets anyone who “intentionally disseminates” information online that they have “reason to believe to be false or fake and likely to cause or create a sense of fear, panic or disorder or unrest.”
The law was rushed through the National Assembly with little warning last week before being presented to the Senate on Tuesday, and will now pass to the president to be rubber stamped.


Trump says Microsoft is in talks to acquire TikTok

Updated 28 January 2025
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Trump says Microsoft is in talks to acquire TikTok

US President Donald Trump told reporters on Monday that Microsoft is in talks to acquire TikTok and that he would like to see a bidding war over the app.
Microsoft and TikTok did not immediately respond to Reuters’ requests for a comment outside regular business hours.
Trump has previously said that he was in discussions with several parties about purchasing TikTok and expects to make a decision on the app’s future within the next 30 days.
The app, which has about 170 million American users, was briefly taken offline just before a law requiring ByteDance to either sell it on national security grounds or face a ban took effect on Jan. 19.
Trump, after taking office on Jan. 20, signed an executive order seeking to delay by 75 days the enforcement of the law that was put in place after US officials warned that there was a risk of Americans’ data being misused under ByteDance.


DeepSeek: Chinese AI firm sending shock waves through US tech

Updated 28 January 2025
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DeepSeek: Chinese AI firm sending shock waves through US tech

  • The program has shaken up the tech industry and hit US titans including Nvidia, the AI chip juggernaut that saw nearly $600 billion of its market value erased, the most ever for one day on Wall Street

BEIJING: Chinese firm DeepSeek’s artificial intelligence chatbot has soared to the top of the Apple Store’s download charts, stunning industry insiders and analysts with its ability to match its US competitors.
The program has shaken up the tech industry and hit US titans including Nvidia, the AI chip juggernaut that saw nearly $600 billion of its market value erased, the most ever for one day on Wall Street.
Here’s what you need to know about DeepSeek:
DeepSeek was developed by a start-up based in the eastern Chinese city of Hangzhou, known for its high density of tech firms.
Available as an app or on desktop, DeepSeek can do many of the things that its Western competitors can do — write song lyrics, help work on a personal development plan, or even write a recipe for dinner based on what’s in the fridge.
It can communicate in multiple languages, though it told AFP that it was strongest in English and Chinese.
It is subject to many of the limitations seen in other Chinese-made chatbots like Baidu’s Ernie Bot — asked about leader Xi Jinping or Beijing’s policies in the western region of Xinjiang, it implored AFP to “talk about something else.”
But from writing complex code to solving difficult sums, industry insiders have been astonished by just how well DeepSeek’s abilities match the competition.
“What we’ve found is that DeepSeek... is the top performing, or roughly on par with the best American models,” Alexandr Wang, CEO of Scale AI, told CNBC.
That’s all the more surprising given what is known about how it was made.
In a paper detailing its development, the firm said the model was trained using only a fraction of the chips used by its Western competitors.
Analysts had long thought that the United States’ critical advantage over China when it comes to producing high-powered chips — and its ability to prevent the Asian power from accessing the technology — would give it the edge in the AI race.
But DeepSeek researchers said they spent only $5.6 million developing the latest iteration of their model — peanuts when compared with the billions US tech giants have poured into AI.
Shares in major tech firms in the United States and Japan have tumbled as the industry takes stock of the challenge from DeepSeek.
Chip making giant Nvidia — the world’s dominant supplier of AI hardware and software — closed down seventeen percent on Wall Street on Monday.
And Japanese firm SoftBank, a key investor in US President Donald Trump’s announcement of a new $500 billion venture to build infrastructure for artificial intelligence in the United States, lost more than eight percent.
Venture capitalist Marc Andreessen, a close adviser to Trump, described it as “AI’s Sputnik moment” — a reference to the Soviet satellite launch that sparked the Cold War space race.
“DeepSeek R1 is one of the most amazing and impressive breakthroughs I’ve ever seen,” he wrote on X.
Like its Western competitors Chat-GPT, Meta’s Llama and Claude, DeepSeek uses a large-language model — massive quantities of texts to train its everyday language use.
But unlike Silicon Valley rivals, which have developed proprietary LLMs, DeepSeek is open source, meaning anyone can access the app’s code, see how it works and modify it themselves.
“We are living in a timeline where a non-US company is keeping the original mission of OpenAI alive — truly open, frontier research that empowers all,” Jim Fan, a senior research manager at Nvidia, wrote on X.
DeepSeek said it “tops the leaderboard among open-source models” — and “rivals the most advanced closed-source models globally.”
Scale AI’s Wang wrote on X that “DeepSeek is a wake up call for America.”
Beijing’s leadership has vowed to be the world leader in AI technology by 2030 and is projected to spend tens of billions in support for the industry over the next few years.
And the success of DeepSeek suggests that Chinese firms may have begun leaping the hurdles placed in their way.
Last week DeepSeek’s founder, hedge fund manager Liang Wenfeng, sat alongside other entrepreneurs at a symposium with Chinese Premier Li Qiang — highlighting the firm’s rapid rise.
Its viral success also sent it to the top of the trending topics on China’s X-like Weibo website Monday, with related hashtags pulling in tens of millions of views.
“This really is an example of spending a little money to do great things,” one user wrote.


Dubai Lynx expands talent training program Young Lynx Academy to Saudi Arabia

Updated 27 January 2025
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Dubai Lynx expands talent training program Young Lynx Academy to Saudi Arabia

  • Winners will be recognized at the Dubai Lynx Awards ceremony on April 9 in Dubai

DUBAI: Dubai Lynx, a prominent creative festival and awards program organized by Cannes Lions, has announced the launch of the Saudi edition of its annual Young Lynx Academy, in partnership with multinational advertising conglomerate Publicis Groupe Middle East.

“Saudi Arabia’s creative industry is at a pivotal moment, driven by ambition and a growing appetite for world-class creative excellence,” Adel Baraja, CEO of Publicis Communications KSA, told Arab News.

He added: “The market is brimming with untapped potential, and we believe initiatives like Young Lynx Academy will play a crucial role in shaping the future of creativity in the Kingdom.”

The Dubai edition will be held on April 7 and 8, and the Saudi edition will take place at Snap Inc.’s Riyadh office from Feb. 18 to 19.

“The Riyadh edition of the Young Lynx Academy, in partnership with Publicis Groupe Middle East, is designed to be an immersive experience that challenges young professionals to think creatively and push their boundaries,” Kamille Marchant, director of Dubai Lynx, told Arab News.

On the first day, participants will meet the mentors who will guide them through the event. The day will also feature keynote speeches from industry experts, networking opportunities, and an introduction to the “centerpiece” of the event, a 24-hour hack challenge, Marchant explained.

On the second day, participants will focus on tackling the brief and present their ideas to a panel of judges. They will be required to work collaboratively on a real-world brief under time constraints, which encourages not just innovative thinking but also teamwork, adaptability, and problem-solving under pressure, she added.

The event will conclude with the announcement of the winning presentation.

Applications are now open, and the winners will be recognized at the Dubai Lynx Awards ceremony on April 9 at the Emirates Golf Club.