Taking too long? Close loading screen.
Connect with us

Business

Duterte Lashes Out at Facebook After It Takes Down Fake Accounts

Published

on

MANILA — President Rodrigo Duterte of the Philippines is one of a number of populists around the world who rose to power in part by harnessing Facebook’s ability to reach millions, without meddlesome fact checkers or journalists to get in the way. During Mr. Duterte’s 2016 campaign, his allies flooded the social media platform with misinformation about his opponents and laudatory stories about him.

Four years later, after allegations that Facebook aided disruptive misinformation campaigns in many countries, the Silicon Valley giant has put up increasing checks on what politicians and their allies can say online. And Mr. Duterte is not pleased.

In his weekly public address on Monday, Mr. Duterte lashed out at Facebook for taking down fake accounts that supported his policies, making vague threats to shut the platform down in the Philippines.

“I allow you to operate here,” Mr. Duterte said. “You cannot bar or prevent me from espousing the objectives of government. Is there life after Facebook? I don’t know. But we need to talk.”

The company said last week that it had taken down two networks, one based in China and one in the Philippines, that used fake accounts to post information about a variety of subjects, including Philippine politics. It said both networks had misled users about their identities.

The Philippine network had ties to the military and the police, the company said. It showed examples of memes the network had posted that criticized Communist insurgents in the Philippines, as well as progressive activist groups.

In his address on Monday, Mr. Duterte accused Facebook of opposing his policies and supporting the Philippine left. He said the company had “opened a Pandora’s box” and that his government might respond with tougher regulations.

“We allow you to operate here hoping that you could help us also,” he said. “Now, if the government cannot espouse or advocate something which is for the good of the people, then what is your purpose here in my country?”

Facebook executives in the Philippines declined to comment. In its statement last week, the company said it had shut down the networks because of their “coordinated inauthentic behavior,” not the content of the posts.

Mr. Duterte’s threats against Facebook were a striking turnaround for a strongman ruler who has reaped considerable benefit from the platform. Before he won the 2016 election, running as a tough-talking populist, fake accounts on Facebook spread positive stories about him and inflammatory attacks on his opponents, many of them untrue.

Since he took office, misinformation on Facebook — some of it shared openly by his aides — has been used to slander his critics and promote Mr. Duterte’s policies, including his bloody war on drugs. In March of last year, Facebook suspended 200 accounts linked to Nic Gabunada, the social media manager of Mr. Duterte’s 2016 campaign, also for “coordinated inauthentic activity.”

ImageMaria Ressa, co-founder of the news site Rappler, last week in Quezon City, the Philippines. Rappler helped bring the fake accounts to Facebook’s attention, the company said.
Credit…Aaron Favila/Associated Press

In its statement last week, Facebook said the Philippine network appeared to have escalated its activity in 2019 and 2020. It posted in Filipino and English about Philippine news, including domestic politics, antiterrorism legislation and the military’s activities against terrorism, the company said.

The China-based network posted in Chinese, Filipino and English, focusing most of its activity in Southeast Asia, the company said. It posted about Philippine politics, including material supportive of Mr. Duterte and his daughter, who is said to be weighing a presidential run in 2022. But it also posted on global topics, including China’s activity in the South China Sea, where it has territorial disputes with the Philippines.

The Chinese network also posted content aimed at influencing the American presidential election, though Facebook said the network devoted little focus to that effort and had gained “almost no following” in the United States.

Mr. Duterte and his officials did not appear to dispute that the military was involved in the Philippine-based network. He denounced Facebook for taking down the posts backing the military’s campaign against the country’s long-running Communist insurgency.

“You know, Facebook, insurgency is about overturning the government,” Mr. Duterte said. “What would be the point of allowing you to continue if you cannot help us? We are not advocating mass destruction, we are not advocating mass massacre. It’s a fight of ideas.”

On Tuesday, the military issued a statement saying that Facebook “could be the medium that will help consolidate people’s support to their armed forces as their true protectors and defenders of the state against its enemies.”

A spokesman for Mr. Duterte, Harry Roque, said the government considered Facebook’s move “a form of censorship,” adding, “We are not conceding these are fake accounts.”

Facebook said the Philippine network was brought to its attention by civil society groups and by Rappler, an independent news site that has helped Facebook identify misinformation.

Mr. Duterte has issued threats against executives at Rappler and at the broadcast network ABS-CBN, both of which have been at the forefront of reporting about his drug war. Rappler’s co-founder Maria Ressa was convicted in June of libeling a businessman by alleging that he had ties to the drug underworld, and she still faces several other charges, including tax evasion. Ms. Ressa, who is free on bail, has denied all of the charges, calling them attempts by the government to silence her.

ABS-CBN has been effectively shut down, with the House of Representatives, dominated by allies of Mr. Duterte, having refused to renew its broadcast license. Its beleaguered chairman stepped down last week.

Danilo Arao, an associate professor of journalism at the state-run University of the Philippines, said the president’s comments Monday had made it clear that social media companies now risked official retaliation along with government critics.

“With Duterte, anything is possible, so there is a need to be vigilant,” Mr. Arao said. He said the president’s “tirade against Facebook” was ironic, given its role in his rise to power.

Credit…Jes Aznar for The New York Times

Source

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

The Trump campaign celebrated a growth record that Democrats downplayed.

Published

on

The White House celebrated economic growth numbers for the third quarter released on Thursday, even as Joseph R. Biden Jr.’s presidential campaign sought to throw cold water on the report — the last major data release leading up to the Nov. 3 election — and warned that the economic recovery was losing steam.

The economy grew at a record pace last quarter, but the upswing was a partial bounce-back after an enormous decline and left the economy smaller than it was before the pandemic. The White House took no notice of those glum caveats.

“This record economic growth is absolute validation of President Trump’s policies, which create jobs and opportunities for Americans in every corner of the country,” Mr. Trump’s re-election campaign said in a statement, highlighting a rebound of 33.1 percent at an annualized rate. Mr. Trump heralded the data on Twitter, posting that he was “so glad” that the number had come out before Election Day.

The annualized rate that the White House emphasized extrapolates growth numbers as if the current pace held up for a year, and risks overstating big swings. Because the economy’s growth has been so volatile amid the pandemic, economists have urged focusing on quarterly numbers.

Those showed a 7.4 percent gain in the third quarter. That rebound, by far the biggest since reliable statistics began after World War II, still leaves the economy short of its pre-pandemic levels. The pace of recovery has also slowed, and now coronavirus cases are rising again across much of the United States, raising the prospect of further pullback.

“The recovery is stalling out, thanks to Trump’s refusal to have a serious plan to deal with Covid or to pass a new economic relief plan for workers, small businesses and communities,” Mr. Biden’s campaign said in a release ahead of Thursday’s report. The rebound was widely expected, and the campaign characterized it as “a partial return from a catastrophic hit.”

Economists have warned that the recovery could face serious roadblocks ahead. Temporary measures meant to shore up households and businesses — including unemployment insurance supplements and forgivable loans — have run dry. Swaths of the service sector remain shut down as the virus continues to spread, and job losses that were temporary are increasingly turning permanent.

“With coronavirus infections hitting a record high in recent days and any additional fiscal stimulus unlikely to arrive until, at the earliest, the start of next year, further progress will be much slower,” Paul Ashworth, chief United States economist at Capital Economics, wrote in a note following the report.

Source

Continue Reading

Business

Black and Hispanic workers, especially women, lag in the U.S. economic recovery.

Published

on

The surge in economic output in the third quarter set a record, but the recovery isn’t reaching everyone.

Economists have long warned that aggregate statistics like gross domestic product can obscure important differences beneath the surface. In the aftermath of the last recession, for example, G.D.P. returned to its previous level in early 2011, even as poverty rates remained high and the unemployment rate for Black Americans was above 15 percent.

Aggregate statistics could be even more misleading during the current crisis. The job losses in the initial months of the pandemic disproportionately struck low-wage service workers, many of them Black and Hispanic women. Service-sector jobs have been slow to return, while school closings are keeping many parents, especially mothers, from returning to work. Nearly half a million Hispanic women have left the labor force over the last three months.

“If we’re thinking that the economy is recovering completely and uniformly, that is simply not the case,” said Michelle Holder, an economist at John Jay College in New York. “This rebound is unevenly distributed along racial and gender lines.”

The G.D.P. report released Thursday doesn’t break down the data by race, sex or income. But other sources make the disparities clear. A pair of studies by researchers at the Urban Institute released this week found that Black and Hispanic adults were more likely to have lost jobs or income since March, and were twice as likely as white adults to experience food insecurity in September.

The financial impact of the pandemic hit many of the families that were least able to afford it, even as white-collar workers were largely spared, said Michael Karpman, an Urban Institute researcher and one of the studies’ authors.

“A lot of people who were already in a precarious position before the pandemic are now in worse shape, whereas people who were better off have generally been faring better financially,” he said.

Federal relief programs, such as expanded unemployment benefits, helped offset the damage for many families in the first months of the pandemic. But those programs have mostly ended, and talks to revive them have stalled in Washington. With virus cases surging in much of the country, Mr. Karpman warned, the economic toll could increase.

“There could be a lot more hardship coming up this winter if there’s not more relief from Congress, with the impact falling disproportionately on Black and Hispanic workers and their families,” he said.

Source

Continue Reading

Business

Ant Challenged Beijing and Prospered. Now It Toes the Line.

Published

on

As Jack Ma of Alibaba helped turn China into the world’s biggest e-commerce market over the past two decades, he was also vowing to pull off a more audacious transformation.

“If the banks don’t change, we’ll change the banks,” he said in 2008, decrying how hard it was for small businesses in China to borrow from government-run lenders.

“The financial industry needs disrupters,” he told People’s Daily, the official Communist Party newspaper, a few years later. His goal, he said, was to make banks and other state-owned enterprises “feel unwell.”

The scope of Mr. Ma’s success is becoming clearer. The vehicle for his financial-technology ambitions, an Alibaba spinoff called Ant Group, is preparing for the largest initial public offering on record. Ant is set to raise $34 billion by selling its shares to the public in Hong Kong and Shanghai, according to stock exchange documents released on Monday. After the listing, Ant would be worth around $310 billion, much more than many global banks.

The company is going public not as a scrappy upstart, but as a leviathan deeply dependent on the good will of the government Mr. Ma once relished prodding.

More than 730 million people use Ant’s Alipay app every month to pay for lunch, invest their savings and shop on credit. Yet Alipay’s size and importance have made it an inevitable target for China’s regulators, which have already brought its business to heel in certain areas.

These days, Ant talks mostly about creating partnerships with big banks, not disrupting or supplanting them. Several government-owned funds and institutions are Ant shareholders and stand to profit handsomely from the public offering.

The question now is how much higher Ant can fly without provoking the Chinese authorities into clipping its wings further.

Excitable investors see Ant as a buzzy internet innovator. The risk is that it becomes more like a heavily regulated “financial digital utility,” said Fraser Howie, the co-author of “Red Capitalism: The Fragile Financial Foundation of China’s Extraordinary Rise.”

“Utility stocks, as far as I remember, were not the ones to be seen as the most exciting,” Mr. Howie said.

Ant declined to comment, citing the quiet period demanded by regulators before its share sale.

The company has played give-and-take with Beijing for years. As smartphone payments became ubiquitous in China, Ant found itself managing huge piles of money in Alipay users’ virtual wallets. The central bank made it park those funds in special accounts where they would earn minimal interest.

After people piled into an easy-to-use investment fund inside Alipay, the government forced the fund to shed risk and lower returns. Regulators curbed a plan to use Alipay data as the basis for a credit-scoring system akin to Americans’ FICO scores.

China’s Supreme Court this summer capped interest rates for consumer loans, though it was unclear how the ceiling would apply to Ant. The central bank is preparing a new virtual currency that could compete against Alipay and another digital wallet, the messaging app WeChat, as an everyday payment tool.

Ant has learned ways of keeping the authorities on its side. Mr. Ma once boasted at the World Economic Forum in Davos, Switzerland, about never taking money from the Chinese government. Today, funds associated with China’s social security system, its sovereign wealth fund, a state-owned life insurance company and the national postal carrier hold stakes in Ant. The I.P.O. is likely to increase the value of their holdings considerably.

“That’s how the state gets its payoff,” Mr. Howie said. With Ant, he said, “the line between state-owned enterprise and private enterprise is highly, highly blurred.”

China, in less than two generations, went from having a state-planned financial system to being at the global vanguard of internet finance, with trillions of dollars in transactions being made on mobile devices each year. Alipay had a lot to do with it.

Alibaba created the service in the early 2000s to hold payments for online purchases in escrow. Its broader usefulness quickly became clear in a country that mostly missed out on the credit card era. Features were added and users piled in. It became impossible for regulators and banks not to see the app as a threat.

ImageAnt Group’s headquarters in Hangzhou, China.
Credit…Alex Plavevski/EPA, via Shutterstock

A big test came when Ant began making an offer to Alipay users: Park your money in a section of the app called Yu’ebao, which means “leftover treasure,” and we will pay you more than the low rates fixed by the government at banks.

People could invest as much or as little as they wanted, making them feel like they were putting their pocket change to use. Yu’ebao was a hit, becoming one of the world’s largest money market funds.

The banks were terrified. One commentator for a state broadcaster called the fund a “vampire” and a “parasite.”

Still, “all the main regulators remained unanimous in saying that this was a positive thing for the Chinese financial system,” said Martin Chorzempa, a research fellow at the Peterson Institute for International Economics in Washington.

“If you can’t actually reform the banks,” Mr. Chorzempa said, “you can inject more competition.”

But then came worries about shadowy, unregulated corners of finance and the dangers they posed to the wider economy. Today, Chinese regulators are tightening supervision of financial holding companies, Ant included. Beijing has kept close watch on the financial instruments that small lenders create out of their consumer loans and sell to investors. Such securities help Ant fund some of its lending. But they also amplify the blowup if too many of those loans aren’t repaid.

“Those kinds of derivative products are something the government is really concerned about,” said Tian X. Hou, founder of the research firm TH Data Capital. Given Ant’s size, she said, “the government should be concerned.”

The broader worry for China is about growing levels of household debt. Beijing wants to cultivate a consumer economy, but excessive borrowing could eventually weigh on people’s spending power. The names of two of Alipay’s popular credit functions, Huabei and Jiebei, are jaunty invitations to spend and borrow.

Huang Ling, 22, started using Huabei when she was in high school. At the time, she didn’t qualify for a credit card. With Huabei’s help, she bought a drone, a scooter, a laptop and more.

The credit line made her feel rich. It also made her realize that if she actually wanted to be rich, she had to get busy.

“Living beyond my means forced me to work harder,” Ms. Huang said.

First, she opened a clothing shop in her hometown, Nanchang, in southeastern China. Then she started an advertising company in the inland metropolis of Chongqing. When the business needed cash, she borrowed from Jiebei.

Online shopping became a way to soothe daily anxieties, and Ms. Huang sometimes racked up thousands of dollars in Huabei bills, which only made her even more anxious. When the pandemic slammed her business, she started falling behind on her payments. That cast her into a deep depression.

Finally, early this month, with her parents’ help, she paid off her debts and closed her Huabei and Jiebei accounts. She felt “elated,” she said.

China’s recent troubles with freewheeling online loan platforms have put the government under pressure to protect ordinary borrowers.

Ant is helped by the fact that its business lines up with many of the Chinese leadership’s priorities: encouraging entrepreneurship and financial inclusion, and expanding the middle class. This year, the company helped the eastern city of Hangzhou, where it is based, set up an early version of the government’s app-based system for dictating coronavirus quarantines.

Such coziness is bound to raise hackles overseas. In Washington, Chinese tech companies that are seen as close to the government are radioactive.

In January 2017, Eric Jing, then Ant’s chief executive, said the company aimed to be serving two billion users worldwide within a decade. Shortly after, Ant announced that it was acquiring the money transfer company MoneyGram to increase its U.S. footprint. By the following January, the deal was dead, thwarted by data security concerns.

More recently, top officials in the Trump administration have discussed whether to place Ant Group on the so-called entity list, which prohibits foreign companies from purchasing American products. Officials from the State Department have suggested that an interagency committee, which also includes officials from the departments of defense, commerce and energy, review Ant for the potential entity listing, according to three people familiar with the matter.

Ant does not talk much anymore about expanding in the United States.

Ana Swanson contributed reporting.

Source

Continue Reading

Trending