Jack Dorsey, the CEO of Square and Twitter founder, has agreed to buy a majority stake in Tidal, the streaming music service led by rapper Jay-Z.
The $297m deal is part of an effort to expand the Square's suite of financial tools to musicians and emerging artists.
Tidal will operate independently within Square, according to a company release, and Jay-Z will join Square’s board of directors.
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The pair have previously collaborated on a Bitcoin fund that will focus on the cryptocurrency's adoption in India and Africa.
Elsewhere, the Competition and Markets Authority this morning launched an investigation into “suspected breaches of competition law” in the UK by Apple.
The investigation will centre on how Apple disseminates apps on iOS and iPadOS, the operating systems used for its most-popular devices.
Deliveroo has also selected London for its £8bn stock market floatation in a boost to Britain's plans to lure tech companies to the City.
Meanwhile, Amazon looks set to be among the big winners from the UK tax ‘super-deduction’.
06:14 PM
That's it for today
We'll be back tomorrow. Thanks for reading.
05:53 PM
Apple faces further EU crackdown
In addition to the news earlier today that Apple is facing a competition probe in the UK, The European Commission looks set to charge Apple with anti-competitive conduct.
The European Commission could send the statement of objections setting out suspected violations of the bloc’s antitrust rules to Apple before the summer, one of the people said.The case is one of four opened by the EU competition enforcer into Apple in June last year. The EU charge sheet usually indicates whether a fine is merited and what companies have to do to halt anti-competitive practices.
04:44 PM
AI and blockchain touted as vaccine solutions by IBM
A tech company attempting to shoehorn its way into the vaccine roll-out? Surely not. Today, IBM has announced a plan to collaborate on Covid-19 vaccine supplies with Moderna. Here's a section of the announcement:
Today, Moderna and IBM announced their intentions to explore technologies, including artificial intelligence, blockchain and hybrid cloud, that could help support smarter COVID-19 vaccine management. Central to the effort will be a pilot of open, standardised, technology-enabled vaccine distribution approaches aimed to improve supply chain visibility and foster near real-time tracking of vaccine administration.
IBM says it will be working on "end-to-end traceability" of vaccines as well as a "digital health pass" that would let people record vaccinations and test results.
Blockchain - the database technology behind Bitcoin - has been promised as a game-changing logistics technology for supply chains for years now, with more hype than reality.
03:36 PM
Bitcoin 'will eventually be the world's currency'
Leader of crypto exchange Kraken, Jesse Powell, claims that Bitcoin could reach $1 million in the next decade, adding that supporters say it could eventually replace all of the major fiat currencies.
“We can only speculate, but when you measure it in terms of dollars, you have to think it’s going to infinity,” he told Bloomberg. “The true believers will tell you that it’s going all the way to the moon, to Mars and eventually, will be the world’s currency.”
03:24 PM
UK virtual events firm Hopin valued at $5.65bn after raising $400m
Hopin, a British virtual events provider, has raised $400m (£286m) in a round that included two of America’s best-known tech investors.
Venture capital firms Andreessen Horowitz and General Catalyst have led the Series C funding round into the firm alongside existing investor IVP.
Returning investors including Tiger Global, Salesforce Ventures, and Coatue also joined the round, which has now valued the firm at $5.65bn.
We've raised our Series C at @Hopin I couldn't be prouder of the work our team has done so far, but we're just getting started. @streamyardapp joining the family was a highlight for this year! We have really big plans, I've written a bit about the story.https://t.co/1M3RliCcTk
The London-headquartered firm, which was founded less than two years ago has designed a host of tools to help bring the in-person events experience online.
Among the features designed by Hopin is the ability for organisers to host live talks and Q&As while attendees can also engage in conference-style “speed dating”.
Moscow metro facial ID payment system raises privacy concerns
A new facial recognition payment system on the Moscow metro, due to be launched this year, has raised concerns about privacy and human rights.
Moscow has one of the world's largest video-surveillance systems. It has used the technology to enforce Covid-19 quarantines and thwart would-be protesters from attending rallies in January in support of jailed opposition politician Alexei Navalny.
From the end of 2021, the metro will make the Face Pay system operational at turnstiles and ticket machines, the head of the metro's security service, Andrei Kichigin, said, according to Interfax news agency report earlier this week.
The metro says the payment system will quicken the flow of people, particularly at busy times, and that its wider network of around 5,000 facial recognition cameras at turnstiles only threatens criminals.
"The facial recognition system knows no surnames, first names, or any other personal details," Kichigin said in video footage filmed on Monday and shared with Reuters, adding that only wanted people are included in the database.
"Information is stored in a data processing centre that only interior ministry staff have access to," Kichigin said.
Concerns over which officials have access to that database and how any information might be used raised privacy and human rights concerns, said Sarkis Darbinyan, head of the legal department at Roskomsvoboda, a group dedicated to protecting digital rights and freedom of information.
Face ID tech isn't just being criticised for being an invasion of privacy, some argue it is inaccurate and, in some cases "racist." Hannah Boland explains why.
01:23 PM
Jay-Z will join Square's board after Tidal acquisition
Jack Dorsey, the Twitter founder and CEO of Square, has revealed that rap star Jay-Z has joined the board Square as part of a $297m acquisition of Tidal.
The move is part of effort to expand Square's suite of financial tools to musicians and emerging artists. The joint venture aims to "find new ways for artists to support their work," Dorsey said.
Square is acquiring a majority ownership stake in TIDAL through a new joint venture, with the original artists becoming the second largest group of shareholders, and JAY-Z joining the Square board. Why would a music streaming company and a financial services company join forces?!
"Given what Square has been able to do for sellers of all sizes and individuals through Cash App, we believe we can now work for artists to see the same success for them, and us. We’re going to start small and focus on the most critical needs of artists and growing their fanbases."
Square will pay $297 million in a mix of cash and stock to become Tidal’s “significant majority” owner, though Jay-Z and Tidal’s other existing artist-shareholders will retain some ownership in the company. Tidal will operate independently within Square, according to a company release, and Jay-Z will join Square’s board of directors.
It’s not immediately clear how Square will help Tidal build its business, but there is a lot of overlap between the music industry and Square’s existing market, which includes payments and commerce, said Jesse Dorogusker, the Square executive who will serve as interim leader of Tidal inside its new parent company.
“There was a real opportunity at this intersection of music and art and the economy that was uniquely made for the pair of us,” Dorogusker said. Some obvious examples would include helping musicians run their merchandise businesses. “Artists sell tickets, they sell special experiences,” he added.
Jay-Z acquired Tidal for $56 million in 2015 and announced plans to turn it into the first artist-owned streaming service
01:08 PM
ByteDance invests in Chinese self-driving company QCraft, claims report
TikTok owner ByteDance is investing in Chinese autonomous driving startup QCraft, according to a report in Bloomberg, another sign of the blurring of boundaries between car companies and Big Tech.
The company is investing in QCraft’s latest fundraising round of at least $25m, sources said. QCraft’s technology is being trialed in minibuses in parts of China.
A ByteDance spokesperson had no immediate comment. A representative for QCraft declined to comment.
12:44 PM
Apple finally lets you automatically transfer your iCloud Photos to Google
Apple users can now request to automatically transfer a copy of photos and videos they store in iCloud Photos to Google Photos.
That means you no longer have to manually download your iCloud Photos to move them.
To transfer, log in to your iCloud account at Apple's' Data and Privacy website. Go to "Transfer a copy of your data" and mark the box beside Photos and/or Videos. You'll then need to log in to your Google Account to complete the process.
12:28 PM
'Too early to back' vaccine passports, says Sunak
It is "too early" to say whether the Government can support rolling out digital vaccine passports while a review is under way, the Chancellor has said.
Rishi Sunak admitted there are "various practical, legal and ethical issues" with asking people to prove they have either been vaccinated or tested negative for coronavirus before being permitted into venues or businesses.
Cabinet Office minister Michael Gove is currently leading a review for Prime Minister Boris Johnson on whether bringing in "Covid status certificates" would help with reopening the economy once virus restrictions have been lifted after June 21.
The Chancellor said the review could take months and only after it has been completed can ministers weigh up the pros and cons.
Earlier this year, my colleague Hannah Boland revealed that the Government is funding at least eight different vaccine passport schemes, despite claims from ministers that there are “no plans” for a roll-out across the country.
Transparency documents from innovation agency InnovateUK have shown that more than £450,000 worth of government grants have been allocated to companies developing vaccine passports - where users can prove digitally that they have received a Covid-19 vaccine. Read more about that here
12:01 PM
ICYMI: China using Big Tech firms to attack BBC in state propaganda campaign, says report
China is using social media platforms such as Twitter to attack the BBC in a state-backed disinformation campaign to undermine critical reporting by Western media on human rights abuses, according to a new report by the Australian Strategic Policy Institute (ASPI).
The “coordinated effort by the [Chinese Communist Party’s] propaganda apparatus” is meant to “discredit the BBC, distract international attention and recapture control of the narrative,” it claims
The ASPI report finds that the same Twitter network that previously amplified coronavirus origin conspiracy theories – for instance, China claiming the pandemic didn’t emerge in Wuhan and instead blaming the US Army – is now being leveraged to attack the BBC.
That “pro-CCP Twitter network” continues to boost content pushed by China’s foreign ministry, going so far as to claim the BBC is paid by Western intelligence or “anti-China forces” to air certain stories.
WhatsApp has today introduced the ability for users to make voice and video calls via the desktop version of the app for the first time.
The messaging platform said one-to-one calls would be encrypted on desktop as they are in the mobile app, allowing users to make calls on their computer's larger screen.
The Facebook-owned firm added the update would give people more options for how they could communicate with colleagues, friends and family.
"Answering on a bigger screen makes it easier to work with colleagues, see your family more clearly on a bigger canvas or free up your hands to move around a room while talking," WhatsApp said in a blog post on the update.
"To make desktop calling more useful, we made sure it works seamlessly for both portrait and landscape orientation, appears in a resizable standalone window on your computer screen, and is set to be always on top so you never lose your video chats in a browser tab or stack of open windows."
The platform said its decision to add calling features to desktop is in response to a "significant increase" it has seen in people making calls on the platform in the wake of the pandemic, as millions of people turned to online communications to stay in touch.
11:17 AM
US giant BlackRock backs Oxford drug firm in $100m round
An Oxford start-up that uses artificial intelligence to accelerate the discovery of new drugs has raised $100m (£71.8m) with the help of the world’s biggest asset manager.
Exscientia said it raised the funds with from US wealth manager BlackRock alongside Bristol Myers Squibb, Novo Holdings, Evotec, and GT Healthcare.
Exscientia had originally planned to raise $60m when it announced the round last summer but it has since expanded it dramatically to include the investment from BlackRock.
The company said it would use the new funds to support the development towards autonomous drug design.
The Oxford firm has developed the first “end-to-end” AI drug discovery platform, dubbed CentaurAI. The company claims it has been able to create new drugs and overcome conventional limitations several years faster than industry benchmarks.
Last year, it became the first in the world to have such an AI-designed molecule submitted for human trials. DSP-1181, as it is known, is a potential regulator of serotonin, a chemical in the brain that is believed to play a role in Obsessive Compulsive Disorder (OCD). Instead of the typical five years, it took only 12 months to get DSP-1181 to trial.
The company now wants to help develop drugs that work against all coronaviruses.
Andrew Hopkins, founder of pharmaceutical startup Exscientia, believes artificial intelligence will help discover new treatments against diseases including Covid
William Abecassis, head of BlackRock’s innovation capital who will join Exscientia’s board of directors as an observer, said the company was “thrilled” to be investing in a “world-class” team.
“Exscientia is breaking ground in small molecule drug design, with a platform that radically improves drug discovery,” he said.
Andrew Hopkins, the Exscientia chief executive, said he was “delighted” that BlackRock shared the company’s vision on revolutionising drugs.
“It is also recognition of the ingenuity and hard work of our employees to turn the promise of AI into reality today, where we are bringing the world’s first AI designed drugs into the clinic,” he said.
“I believe that our company’s reimagined approach to drug discovery will become the new de facto standard.”
Exscientia now employs more than 100 people across the UK and the US. It has doubled in size over the past 12 months and expects to do so again this year.
Read Harry de Quetteville's fascinating interview with Andrew Hopkins here.
11:00 AM
Here's everything you need to know about Apple's app fees:
10:34 AM
Apple investigated in the UK over suspected competition law breaches
Apple is under investigation from Britain’s competition watchdog after complaints that its App Store is "unfair" and "anti-competitive."
The Competition and Markets Authority is probing whether the iPhone maker uses its potentially “dominant” position in the supply of apps on iPhones and iPads to hurt its rivals.
It follows an outcry from major developers, including Epic Games, Spotify and Tinder, over what has been described as “draconian” App Store rules.
Apple’s App Store, where users can download apps for iPhones and iPads, charges developers a fee of up to 30pc for any income from apps listed on its store. They also must abide by its rules, such as not offering ways to bypass Apple’s fee.
In a statement on Thursday, the CMA said that Apple had to approve all apps on the App Store and that the approval “hinged on developers agreeing to certain terms”.
Other complaints against the US tech giant also focus on the fact that developers must use Apple’s payment system for in-app purchases rather than other alternatives.
Apple sales by division
Andrea Coscelli, chief executive of the CMA, said complaints against Apple warranted “careful scrutiny”. “Our ongoing examination into digital markets has already uncovered some worrying trends."
“We know that businesses, as well as consumers, may suffer real harm if anti-competitive practices by Big Tech go unchecked. That’s why we’re pressing on with setting up the new Digital Markets Unit and launching new investigations wherever we have grounds to do so.”
The Apple probe comes as the UK watchdog seeks to move to the forefront of tech regulation after emerging from the shadow of EU regulators at the end of Britain’s Brexit transition.
Apple said in a statement that it looks forward to working with the CMA to “to explain how our guidelines for privacy, security and content have made the App Store a trusted marketplace for both consumers and developers.”
“We created the App Store to be a safe and trusted place for customers to download the apps they love and a great business opportunity for developers everywhere. In the UK alone, the iOS app economy supports hundreds of thousands of jobs, and any developer with a great idea is able to reach Apple customers around the world.
“We believe in thriving and competitive markets where any great idea can flourish," it said. "The App Store has been an engine of success for app developers, in part because of the rigorous standards we have in place — applied fairly and equally to all developers — to protect customers from malware and to prevent rampant data collection without their consent."
Epic Games is already taking action against Apple in the US after it removed Fortnite from its App Store.
Apple said Epic circumvented its transaction fee rules. Fortnite was also removed from the Google Play Store, an Android alternative, for the same reason.
Epic Games chief executive Tim Sweeney said: “We will not stand idly by and allow Apple to use its platform dominance to control what should be a level digital playing field.
“It’s bad for consumers, who are paying inflated prices due to the complete lack of competition among stores and in-app payment processing.
An Apple spokesman said that Epic had grown into a “multi-billion dollar business” using the app store and that it had violated guidelines that “apply equally to every developer”. It has countersued Epic for theft in the US.
09:51 AM
TikTok-owner working on Clubhouse copycat app
ByteDance, the parent company of social media sensation TikTok, is working on a competitor to Clubhouse, the US audio chat service.
The company is working on a copycat-styled app for the Chinese market, Reuters reported citing sources familiar with the matter.
The TikTok-owner will be one of a batch of similar apps that have emerged in China after Clubhouse was blocked from the country in February. The app have seen a surge in users who had participated in discussions on sensitive topics such as the Xinjang detention camps and Hong Kong independence.
ByteDance's plans are still in early stages, according to the sources.
TikTok is reportedly working on a competitor app to Clubhouse - AFP
09:21 AM
Parler accuses Amazon of trying to 'destroy' app in second lawsuit
Right-wing social media site Parler has claimed that Amazon tried to "destroy" its business after it was pulled off the tech giant's servers.
AWS, the cloud server arm of Amazon, suspended Parler from its services following the storming of the US Capitol by supporters of former President Donald Trump.
Parler has filed a second lawsuit against AWS seeking damages for what it deemed to be anti-competitive conduct. The claim was field in Washington state court two weeks after Parler returned online following a month-long absence.
Parler was pulled from AWS' servers for a month - Reuters
The site was pulled from the web after Amazon said it had failed to moderate violent content. The new suit came after Parler voluntarily dismissed another lawsuit against Amazon over the same suspension.
The company has now accused Amazon of a host of contractual violations and alleges it shut down Parler in order to benefit Twitter, a client of AWS.
An Amazon spokesman said the new claims have no merit, and that it “provides technology and services to customers across the political spectrum.”
08:50 AM
Amazon opens supermarket with no checkouts in UK first
The West London shop is the online retailer's latest move on the British food market and may herald a bigger assault on supermarkets. My colleague Laura Onita reports:
Amazon has opened its first physical grocery store in Britain as the online giant continues to explore an assault on UK supermarkets.
The 2,500 sq ft Amazon Fresh shop in Ealing, west London, will sell hundreds of own-label “By Amazon” products such as milk, butter, eggs alongside established brands.
It also has an upmarket range called Our Selection and will stock some items from Morrisons and Booths, which already sell their groceries on Amazon.
SpaceX Starship prototype rocket explodes after successful landing
Elon Musk’s SpaceX completed its first successful landing with its newest and biggest rocket before it exploded a short time after.
The Starship SN-10 prototype was engulfed in flames after it lifted off from a seaside launch pad in Boca Chica in Texas. The rocket flew to an altitude of 10km before turning its engines back on and settling on the landing pad.
The original successful landing was a key milestone for the space exploration company, which had failed to stick the landing on three previous attempts.
The SpaceX rocket exploded shortly after landing - Reuters
The cause of the fire, which consumed the rocket, is unknown as yet but it may have been set ablaze after a fire ignited fuel.
Despite the explosion, SpaceX is likely to see the mission as a success with the original landing seen as significant progress.
SpaceX founder Musk plans to use the Starship to shuttle as many as 12 people around the moon in 2023, land NASA astronauts on the lunar surface and eventually settle explorers on Mars.
The company still has work to prepare the Starship for its first orbital flight, which could occur later this year.
“I’m highly confident that we will have reached orbit many times with Starship before 2023, and that it will be safe enough for human transport by 2023,” Musk said Tuesday in a video released by Japanese entrepreneur Yusaku Maezawa, who has invited eight people to apply to join his “fun trip” around the moon. “It’s looking very, very promising.”
Deliveroo to make use of dual-class shares in London listing
Will Shu, the founder of Deliveroo, will have access to time-limited dual-class shares when his company makes its public bow in London.
The introduction of the share structure was touted by Lord Hill in his review of London’s listing criteria, which was released this week. Chancellor Rishi Sunak later endorsed his recommendations.
Lord Hill recommended that the UK introduce the shares, which give founders more control over the decision-making of their company.
In a statement on Thursday morning, Deliveroo said the shares would give Mr Shu the “stability” to take decisions that would allow the company to fulfil its long-term vision.
Deliveroo said the dual-class shares will be limited to three years, after which point the company will move to a “traditional single class structure”.
In announcing the decision to list in London, Mr Shu said Deliveroo had been “born” in the city.
“At Deliveroo we want to be the definitive food company, bringing consumers the best choice of foods, giving restaurants new opportunities to grow their businesses, and providing riders with great work,” he said.
“We are always focused on developing the best proposition for consumers, restaurants and riders and look forward to bringing our service to new parts of the UK as we continue to grow.”
Lord Hill said that it was “obviously great news” that Deliveroo had chosen to list in the City.
"One of the whole points of our Listing Review was to encourage more of the growth companies of the future to list in London,” he said.
“The changes we recommended would make it easier for more companies to follow Deliveroo’s lead, sending out a message that London is open for business."
Chancellor Rishi Sunak said the UK was one of the “best places in the world” to grow a business.
“That’s why we are looking at reforms to encourage even more high growth, dynamic businesses to list in the UK,” he said.
“So it’s fantastic that Deliveroo has taken this decision to list on the London Stock Exchange. Deliveroo has created thousands of jobs and is a true British tech success story.”
Deliveroo’s announcement came after a strong year for the firm, which reported six months of consecutive profits throughout 2020.
The company plans to aggressively expand its Editions delivery-only kitchens, as well as its on-demand grocery offerings.
UK food delivery business Deliveroo has picked London fro a future IPO - Reuters
BBC Countryfile viewers were left distracted as they tuned in to watch the latest instalment of the nature and farming programme, with many taking to social media to share their thoughts
Photo Illustration by Thomas Levinson/The Daily Beast/GettyThe jurors haven’t even been selected yet. The trial really hasn’t even started. But as Donald Trump’s first day in criminal court wrapped up on Monday, the former president already seemed to be losing.New York Supreme Court Justice Juan Merchan displayed little patience for, as he insisted on calling him, “Mr. Trump.” That the judge is already over the former president’s antics is abundantly clear. And as Trump’s lawyers repeatedly trie
Screaming Into the Void Despite an astronomical number of red flags, investors who poured their hard-earned cash into former president Donald Trump's Truth Social meme stock are experiencing a rude awakening. As the Washington Post reports, Trump supporters are seething as the value of the social media platform's parent company Trump Media & Technology Group (TMTG) […]
The entire region just witnessed the whimper of the Tehran regime and the bang of Israel and its allies. It is time to capitalise on this opportunity for real political gains, Samuel J. Hyde writes.
Beijing half marathon organisers said Monday they were investigating after footage shared widely online appeared to show three African runners deliberately allowing China's He Jie to win.Track and field's international body said it was "aware" of the footage online and the investigation into it.
The Queen appointed Liz Truss as Prime Minister just two days before her death and the former PM travelled to Balmoral to meet the ailing monarch in her final days
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