Affichage des articles dont le libellé est Sundar Pichai. Afficher tous les articles
Affichage des articles dont le libellé est Sundar Pichai. Afficher tous les articles

jeudi 20 juin 2019

Tech Quisling

Google defeats shareholders on ‘Dragonfly’ censored search in China
By Zack Whittaker


A shareholder resolution aimed at halting Google’s efforts to bring a censored version of its search engine to China has failed.
Shareholders tabled a resolution to demand Google put the brakes on its controversial search engine efforts in China. 
The program, internally dubbed “Dragonfly,” is a censorship-friendly search engine with the capability to hide results at the behest of Beijing, which administers one of the most restrictive internets in the world.
The project remains largely secret, amid an internal upheaval and political pressure from the Trump administration over the project, but was later acknowledged by Google chief Sundar Pichai, describing China as an “important” market.
The resolution, which failed to pass during the meeting, would have instructed Google to conduct and publish a human rights impact assessment examining the impacts of a censored Google search engine in China.
It’s not immediately known what was the breakdown of the vote.
“The Chinese government already employs invasive, data-driven surveillance to track its citizens,” said Joshua Brockwell, an investment communications director at Azzad Asset Management, which supports the resolution. 
“The potential for it to weaponize data from Google searches could allow the government to expand its human rights abuses, including mass detentions of the Uighur minority.”
Among recent crackdowns, China has come under international pressure in the past year for targeting Uighur Muslims and holding more than a million in detention.
Google opposes the resolution, saying in its proxy statement: “Google has been open about its desire to increase its ability to serve users in China and other countries. We have considered a variety of options for how to offer services in China in a way that is consistent with our mission and have gradually expanded our offerings to consumers in China, including Google Translate.”
Open Mic, a nonprofit representing shareholders worth $3 billion in Google assets, brought the resolution.
Capital Research & Management Company, the shareholder in the top 10 with the least amount of shares, still has $3.9 billion in stock.

jeudi 28 mars 2019

Tech Quisling

GOOGLE IS CONDUCTING A SECRET “PERFORMANCE REVIEW” OF ITS CENSORED CHINA SEARCH PROJECT
By Ryan Gallagher


GOOGLE EXECUTIVES ARE carrying out a secret internal assessment of work on a censored search engine for China, The Intercept has learned.
A small group of top managers at the internet giant are conducting a “performance review” of the controversial effort to build the search platform, known as Dragonfly, which was designed to blacklist information about human rights, democracy, religion, and peaceful protest.
Performance reviews at Google are undertaken annually to evaluate employees’ output and development. 
They are usually carried out in an open, peer review-style process: Workers grade each other’s projects and the results are then assessed by management, who can reward employees with promotion if they are deemed ready to progress at the company.
In the case of Dragonfly, however, the peer review aspect has been removed, subverting the normal procedure. 
In a move described as highly unusual by two Google sources, executives set up a separate group of closed “review committees,” comprised of senior managers who had all previously been briefed about the China search engine.
The existence of the Dragonfly review committees has not been disclosed to rank-and-file Google employees, except for the few who have been evaluated by the committees because they worked on China search. 
Fewer than a dozen top managers at the company are said to be looped in on the review, which has involved studying documents and technical work related to Dragonfly.
Management has decided to commit to keeping this stuff secret,” said a source with knowledge of the review. 
They are “holding any Dragonfly-specific documents out of [employees’] review tools, so that promotion is decided only by a committee that is read in on Dragonfly.”


Executives likely feared that following the normal, more open performance review process with Dragonfly would have allowed workers across the company to closely scrutinize it, according to two Google sources.
If some of the documents about Dragonfly had been made more widely accessible inside the company, according to the two sources, it would probably have led to further controversy about the project, which ignited furious protests and resignations after it was first exposed by The Intercept in August last year.
The decision to carry out the review in secret, however, is itself likely to stoke anger inside the company. 
During the protests over Dragonfly last year, a key complaint from employees was that the China plan lacked transparency and went against the company’s traditionally open workplace culture
Until it was publicly exposed, knowledge about Dragonfly had been restricted to a few hundred of Google’s 88,000 employees — around 0.35 percent of the total workforce.
Facing pressure from both inside and outside the company, Google CEO Sundar Pichai told his staff during an August crisis meeting that he would “definitely be transparent [about Dragonfly] as we get closer to actually having a plan of record. We definitely do plan to engage more and talk more.”
But Google employees told The Intercept this week that company bosses have consistently refused to provide them with information about Dragonfly — leaving them in the dark about the status of the project and the company’s broader plans for China.
Late last year, amid a firestorm of criticism, Google executives moved engineers away from working on the censored search engine and said publicly that there were no current plans to launch it. 
Earlier this month, however, The Intercept revealed that some Google employees were concerned that work on the censored search engine remained ongoing, as parts of the platform still appeared to be under development. 
Google subsequently denied that Dragonfly remained in progress, insisting in a statement that there was “no work being undertaken on such a project. Team members have moved to new projects.”
Google previously launched a search engine in China in 2006, but pulled out of the country in 2010, citing concerns about Chinese government interference. 
At that time, Google co-founder Sergey Brin said the decision to stop operating search in the country was principally about “opposing censorship and speaking out for the freedom of political dissent.”
Dragonfly represented a dramatic reversal of that position. 
The search engine, which Google planned to launch as an app for Android and iOS devices, was designed to comply with strict censorship rules imposed by China’s ruling Communist Party regime, enabling surveillance of people’s searches while also blocking thousands of terms, such as “Nobel prize,” “human rights,” and “student protest.”
More than 60 human rights groups and 22 U.S. lawmakers wrote to Google criticizing the project. 
In February, Amnesty International met with Google to reiterate its concerns about the China plan. “The lack of transparency around the development of Dragonfly is very disturbing,” Anna Bacciarelli, an Amnesty researcher, told The Intercept earlier this month. 
“We continue to call on Google’s CEO Sundar Pichai to publicly confirm that it has dropped Dragonfly for good, not just ‘for now.’”
Google did not respond to a request for comment.




mercredi 12 décembre 2018

Tech Quisling

GOOGLE CEO HAMMERED BY MEMBERS OF CONGRESS ON CHINA CENSORSHIP PLAN
By Ryan Gallagher

GOOGLE CEO SUNDAR PICHAI came under fire from lawmakers on Tuesday over the company’s secretive plan to launch a censored search engine in China.
During a hearing held by the House Judiciary Committee, Pichai faced sustained questions over the China plan, known as Dragonfly, which would blacklist broad categories of information about democracy, human rights, and peaceful protest.
The hearing began with an opening statement from Rep. Kevin McCarthy, R-Calif., who said launching a censored search engine in China would “strengthen China’s system of surveillance and repression.” 
McCarthy questioned whether it was the role of American companies to be “instruments of freedom or instruments of control.”
Pichai read prepared remarks, stating “even as we expand into new markets, we never forget our American roots.” 
He added: “I lead this company without political bias and work to ensure that our products continue to operate that way. To do otherwise would go against our core principles and our business interests.”
The lawmakers questioned Pichai on a broad variety of subjects. 
Several Republicans on the committee complained that Google displayed too many negative stories about them in its search results, and claimed that there was “bias against conservatives” on the platform. 
They also asked about recent revelations of data leaks affecting millions of Google users, Android location tracking, and Google’s work to combat white supremacist content on YouTube.
It was not until Pichai began to face questions on China that he began to look at times uncomfortable.
Rep. David Cicilline, D-R.I., told Pichai that the Dragonfly plan seemed to be “completely inconsistent” with Google’s recently launched artificial intelligence principles, which state that the company will not “design or deploy” technologies whose purpose “contravenes widely accepted principles of international law and human rights.”
“It’s hard to imagine you could operate in the Chinese market under the current government framework and maintain a commitment to universal values, such as freedom of expression and personal privacy,” Cicilline said.
Pichai repeatedly insisted that Dragonfly was an “internal effort” and that Google currently had “no plans to launch a search service in China.” 
Asked to confirm that the company would not launch “a tool for surveillance and censorship in China,” Pichai declined to answer, instead saying that he was committed to “providing users with information, and so we always — we think it’s ideal to explore possibilities... We’ll be very thoughtful, and we will engage widely as we make progress.”
Pichai’s claim that the company does not have a plan to launch the search engine in China contradicted a leaked transcript from a private meeting inside the company. 
In the transcript, the company’s search chief Ben Gomes discussed an aim to roll out the service between January and April 2019. 
For Pichai’s statement to Congress to be truthful, there is only one possibility: that the company has put the brakes on Dragonfly since The Intercept first exposed the project in August.
During a separate exchange, Rep. Keith Rothfus, R-Pa., probed Pichai further on China. 
Rothfus asked Pichai how many months the company had been working to develop the censored search engine and how many employees were involved. 
Pichai seemed caught off guard and stumbled with his response. 
“We have had the project underway for a while,” he said, admitting that “at one point, we had over 100 people on it.” (According to sources who worked on Dragonfly, there have been closer to 300 people developing the plan.)
Rep. Tom Marino, R-Pa., quizzed Pichai on what user information the company would share with Chinese authorities. 
Pichai did not directly answer, stating, “We would look at what the conditions are to operate … [and we would] explore a wide range of possibilities.” 
Pichai said that he would be “transparent” with lawmakers on the company’s China plan going forward. 
He did not acknowledge that Dragonfly would still be secret — and he would not have been discussing it in Congress — had it not been for the whistleblowers inside the company who decided to leak information about the project.
At one point during the hearing, the proceedings were interrupted by a protester who entered the room carrying a placard that showed the Google logo altered to look like a China flag. 
The man was swiftly removed by Capitol Police. 
A handful of Tibetan and Uighur activists gathered in the hall outside the hearing, where they held a banner that stated “stop Google censorship.”
“We are protesting Google CEO Sundar Pichai to express our grave concern over Google’s plan to launch Project Dragonfly, a censored search app in China which will help Chinese government’s brutal human right abuses,” said Dorjee Tseten, executive director of Students for a Free Tibet. 
“We strongly urge Google to immediately drop Project Dragonfly. With this project, Google is serving to legitimize the repressive regime of the Chinese government and authorities to engage in censorship and surveillance.
Earlier on Tuesday, more than 60 leading human rights groups sent a letter to Pichai calling on him to cancel the Dragonfly project. 
If the plan proceeds, the groups wrote, “there is a real risk that Google would directly assist the Chinese government in arresting or imprisoning people simply for expressing their views online, making the company complicit in human rights violations.”

vendredi 9 novembre 2018

Tech Quislings

When Google makes China’s firewall great again
Sundar Pichai thinks the search engine should be willing to work with Chinese censors. Will employees go along with the plan?

By Mark Bergen

If you’re planning on moving to China anytime soon, here’s a piece of advice: Get yourself a WeChat account. 
Open up the “super app,” as it’s known in China, and you can do almost anything: Pay your cab fare, order from a five-star restaurant, buy fruit from a street vendor, or even give alms to a panhandler—they often wear QR codes slung around their necks. 
It’s possible to spend long stretches in China without so much as touching a banknote.
This makes the world’s second-largest economy an internet-enabled paradise, albeit with an important caveat. 
Much of the internet isn’t available. 
Facebook, Twitter, and parts of Wikipedia are all blocked by the “Great Firewall,” the program of government censorship that keeps anything even vaguely subversive offline. 
You can read the BBC, but only if you speak English. 
China blocks the broadcaster’s Mandarin news service, along with Bloomberg.com, the New York Times, and pretty much any news that contradicts the Communist Party line about Tibet, Falun Gong, Taiwan, or the country’s slowing economy.
And there’s no Google. 
The website that for many people is indistinguishable from the internet hasn’t operated in mainland China since 2010, when founders Sergey Brin and Larry Page decided that removing controversial links from search results, as the government in Beijing requires, was unacceptable. 
“We don’t want to run a service that’s politically censored,” Brin said at TED that year. 
His employees applauded the move as a perfect expression of the company’s “Don’t be evil” ethos.
But in 2016 a small team that included Sundar Pichai—the new chief executive officer of Google, which had been reorganized as a subsidiary of Alphabet Inc.—began working on China-related projects, including a program, known as Dragonfly, to bring Google’s search engine back into the country. 
The plans, which were detailed in a report published in early August by the Intercept, a web news outlet, were remarkably granular. 
They included protocols to censor results to the government’s liking, barring search terms such as “Tiananmen Square” and ensuring that users looking for information about air quality would only get data approved by Beijing. 
Google’s prototype also required users to submit identifying information, including phone numbers, which could allow Chinese intelligence agencies to root out dissidents.
The revelations about Dragonfly reverberated widely, and the company’s efforts to quiet the furor only prolonged it. 
You don’t make the world’s information universally accessible and useful by kowtowing to dictators,” tweeted Brandon Downey, a search engineer who’d worked on an earlier effort to bring Google’s services to China before leaving for another job in 2014. 
“I just hope this story is wrong.”
It wasn’t. 
Two weeks later, Pichai acknowledged the program.
But at a weekly all-staff meeting, he and Brin argued that Dragonfly was being overplayed by the media.
It was merely “exploratory,” Pichai said.
“Every year or so there’s a new kind of project to do something or other in China,” Brin told staff, according to a transcript obtained by Bloomberg Businessweek. 
“We experiment with what it might look like.”
The mood inside the room was tense, and Google’s corporate message boards were instantly flooded with debate.
As the meeting continued, someone in the auditorium began leaking Brin’s and Pichai’s comments to New York Times reporter Kate Conger, who relayed them, verbatim, on Twitter.
Suddenly, those tweets were projected on screens behind Brin.
A person shouted, “F--- the leaker!”
Brin, according to three people who witnessed the scene, seemed more alarmed by the leak than by the ensuing outburst.
If employees were going to talk to the press, he said, they would have to shut down the meeting.
Pichai changed the subject.
Five days later, on Aug. 21, Jack Poulson, a Google senior researcher, submitted a resignation letter. “I cannot work at a company that will not internally or publicly clarify its ethical red lines,” he wrote. It was part of a wave of resignations that came in the days following the meeting.
Pichai dug in, and, according to people familiar with his thinking, he remains interested in launching Dragonfly, or something like it.
“It’s a wonderful, innovative market,” he said at a conference in October, referring to China’s 800 million internet users.

Google’s Chinese search engine in 2006.

The Valley’s tech giants tend to share his enthusiasm.
China’s consumers have embraced mobile phones, digital payments, and streaming media in unprecedented numbers.
But Google employees worry that Pichai is being willfully blind to the compromises China is asking the company to make. 
The search giant grew gigantic “on the premise that they were somehow exceptions to the corporate norm,” says a Google employee, who, like many interviewed for this story, declined to be identified discussing sensitive matters.
“They have immense and, in some ways, unprecedented power. And the checks on this power are currently scarce.”
These fears found expression in a memo Downey circulated privately in late August.
He was known within Google as an idealist; after Edward Snowden revealed that the National Security Agency had intercepted Google data, Downey railed against the program as an example of government overreach.
“F--- these guys,” he wrote about the NSA in a widely shared Google Plus post.
In his new memo, Downey contrasted the altruistic ambitions of Google’s founders with what he presented as a company now motivated by a desire for growth and profit.
Dragonfly, Downey pointed out, also happens to be the name of Brin’s megayacht. (A Google spokesman says this is a coincidence.)
“Google has changed,” Downey wrote.
Google declined to make Brin, Pichai, or any other executive available for an interview.
The company, which is also under fire for its handling of sexual harassment complaints, has yet to explain how search in China would square with its long-standing pledge to protect the privacy of its users. 
Privately, executives have argued that if Google wants to continue growing globally, it will have to work with governments that don’t share its values.
Interviews with more than 18 current and former employees suggest the company’s predicament resulted in part from failing to learn from mistakes that played out a decade earlier, when it first confronted the realities of China’s economic and political might.
This history is known to many at Google’s headquarters in Mountain View, Calif., but mostly unknown outside of it.
In an interview in September, Downey, 42, elaborates.
“There’s this Utopian idea: Technology will come in, and people will take these tools, change their government, and get their freedom,” he says.
“We tried that experiment, and it didn’t work.”

Downey, photographed at his home in Mountain View.

Downey grew up in Bayou La Batre, a small town in southern Alabama, where he fell in love with the internet.
“It was just an unalloyed good,” he says of his first experience dialing up on a 2,400-baud modem he bought by mowing lawns one summer in high school.
When Google arrived in 1998, he saw it as a force for freedom and “a miracle.”
Then in 2004, something miraculous happened: Downey, who’d earned a degree from Tulane University, landed a job at the company writing code for the back-end systems of its search engine.
At the time, Google’s founders were struggling to square the ideals of the early web with the realities of running a for-profit company.
As early as 2002, Brin, who was born in the Soviet Union and has made no secret of his dislike of authoritarian regimes, was consulting experts on Chinese censorship.
“He gave me the impression that he was genuinely thinking about the issue of China and human rights,” says Xiao Qiang, a prominent China-born human-rights activist who now lives in the U.S. Xiao suggested to Brin that the search engine would be a liberalizing force there.
After months of planning, Brin and the executive team devised a strategy to deal with the requirements of China’s censors.
A local partner would filter results, and Google would store user data on servers outside the country. On the bottom of each page of censored results, coders added a disclosure in small type that informed web surfers that certain sites had been withheld, which was seen as a sort of middle finger to the People’s Republic.
“Let me tell you,” says Downey, who contributed code to the effort, “the Chinese government was not happy about that disclaimer.”
Employees nicknamed the service Dragon Index.
When Brin went to Xiao with the plans in 2006, the activist gave his blessing.
“It’s better than not being there,” he said at the time.
Brin and many Google employees agreed.
At the time, the web looked like a democratizing force.
Many assumed that Google, even if handicapped, could open the floodgates.
“People really believed that providing some information was better than none,” Downey recalls.
During a debate on an internal mailing list, an employee argued that Dragon Index was “not only not evil, but one of the most good things we’ve done.”
The message was published last month on Twitter by Vijay Boyapati, a former Google engineer.
One of the things he found most “disturbing” in retrospect, he wrote, was “the willingness of my former colleagues to not only comply with the censorship, but with their enthusiasm in rationalizing it.”
Almost as soon as Google started the service, demands from Beijing’s censors escalated. 
In 2006 the search engine had to filter out just a few hundred terms, Downey says; by the Beijing Olympics, two years later, the number had climbed to 10,000.
In addition to its web search engine in China, Google also created a search service for news articles, which was subject to even more stringent rules.
Chinese officials required the company to restrict Google News results to Chinese websites only and to suppress several large sections—World, Nation, and Business, according to Boyapati.
The government asked Google to commit to pull any article that offended the censors within 15 minutes.
Unlike search pages, blacklisted News results didn’t include a disclaimer. 
“No one in the company knew this,” Boyapati says.
“It just sort of came down from management.”
Then in December 2009, Google’s security team discovered something far more troubling.
Hackers had somehow tapped the system the company used to store people’s passwords. 
The hackers also injected malicious code onto staffers’ computers in Beijing. 
According to company sources and an account in Steven Levy’s book In the Plex, Google traced the attackers to China and quickly discovered their aim: to spy on email accounts maintained by dissidents. 
Marty Lev, Google’s security chief at the time, was forced to drive to Stanford University to rescue the laptop of one victim, a student who led pro-Tibet protests.
Soon after, Google learned that the hackers had somehow also stumbled onto the source code for google.com, the company’s version of Coca-Cola’s secret formula.
Immediately, Google sequestered a team in a top-secret “war building,” a participant recalls.
This person says the team was warned that their work could be controversial and would probably mean China would never grant them a visa again.
Like everything at Google, the building had a code name: Helm’s Deep, after the fortress in J.R.R. Tolkien’s books in which humankind, pursued by Sauron’s all-seeing eye, hides from the forces of evil.
Inside Helm’s Deep, the conversation turned to how to respond to China’s aggression.
Eric Schmidt, then CEO, argued that Google could wield more influence by staying in China.
Brin led the other flank, according to five people involved in the discussions.
Those people recall Brin as the most animated, raging less about the source code theft than about a state coming after Google users.
“Sergey was pissed off,” a former executive says.
Brin won out.
On Jan. 12, Google announced it was ending search in China.
“Our objection is to those forces of totalitarianism,” Brin told the New York Times. 
In Beijing people laid flowers at Google’s campus in a mix of grief and mockery over its departure. Reports surfaced that police had banned the practice, and the phrase “illegal flower throwing” quickly became a subversive joke on the Chinese web.
Downey and some co-workers made T-shirts bearing the phrase, another middle finger to the Politburo.

Outside Google’s China headquarters in Beijing on Jan. 13, 2010, shortly after the company announced it was pulling out of China.

Despite this experience, Google never really gave up on China.
The company tried many times, often fruitlessly, to tiptoe back.
A former Asia staffer says there was a running joke that the company was always one quarter away from some launch in China.
Among the key players was Pichai, who spent years running Android, Google’s free mobile operating system, before being elevated to CEO in 2015.
Around 2013, according to a former product manager, Pichai stopped a presentation, insisting that the Android numbers were incorrect because, as was customary at the time, they didn’t include usage of Android in China.
“It’s the biggest country in the world,” Pichai said, according to the ex-employee. “It doesn’t make sense not to think about it.”
During Pichai’s tenure, Google tried to bring its Android app store to China, just as Apple offers one to serve iPhone owners there.
Managers, including Pichai, felt the app store could be a side door into the country—hence the effort’s internal name, Sidewinder—according to two people who worked on it.
Beijing never rejected the proposal outright, but it never greenlighted it, either, these people say.
Other paths also dead-ended.
A former manager recalls a Kafkaesque scene when Google applied for a license to create digital maps of China’s roads.
A government official listened to the pitch and assented, with one condition: Google must avoid politically sensitive areas.
“Sure, where are those?” the company rep asked.
“Oh, no,” the official said, “we can’t tell you that.”
Today, internet users in China can search Google only with a virtual private network, or VPN, which gets around the Great Firewall via cloud servers. (China banned “unauthorized” VPNs in March; some still seem to work.)
And more modest Google offerings have made it past regulators.
Last year the company launched its translation app in China with regulators’ blessing.
This year it offered Files Go, a file-management app for Android phones, and a doodling game, Guess My Sketch, available on WeChat.
Pichai confers regularly with Martin Lau, president of WeChat parent Tencent Holdings Ltd., according to a Chinese tech veteran who knows both.
Part of Pichai’s interest in China stems from his focus on artificial intelligence.
Google is widely regarded as the world leader in the field, but Chinese dictator Xi Jinping has designated AI a priority as part of an ambitious industrial policy.
Google responded by opening an AI lab in Beijing in January to try to take advantage of China’s talent pool in the field.
And in September the company sponsored a government-organized AI conference in Shanghai.
The event’s title: “AI for everyone.”
China’s embrace of AI could eventually support the country’s efforts to control speech on the web. 
A 2017 cybersecurity law mandates that companies host Chinese customer data on servers in the country and requires users to sign up for online services using real names and mobile numbers.
That’s why prototypes of Dragonfly linked searches to phones.
Poulson, the researcher who resigned, says this was hidden from some on Google’s privacy review team, which he cited as a “catastrophic failure.”
“It feels like a war on truth,” Downey says.
Outside experts have raised similar concerns.
“Authorities can access the user data when they see fit,” says Lokman Tsui, a former policy manager for Google in Hong Kong.
“It’s impossible for Google to operate search in China without violating widely recognized human rights.” 
Tsui, now a journalism professor at the Chinese University of Hong Kong, was among those who signed a public letter in August asking the company to reaffirm its 2010 commitment not to censor its search engine.
So did Xiao, who now says he’d advise Google’s founders to stay out: “China has no boundaries between the state and private companies. If you go there, you must be part of digital totalitarianism.” 
But nobody at Google asked Xiao for his opinion this time; he can’t recall when he last spoke to Brin.

Brin at the 2018 Breakthrough Prize award ceremony in Mountain View.

After the contentious August staff meeting, Google publicly defended its China plans, in part by criticizing Baidu, the country’s dominant search engine.
“Today people either get fake cancer treatments or they get valuable information,” Pichai said in October at a Wired conference in San Francisco.
The reference was probably lost on most of the audience, but it would have been well-known in China, where a Baidu search ad for an experimental medical treatment was blamed for giving misleading information to a young cancer patient, who later died. (Baidu tightened restrictions on medical ads in response to the incident.)
To ease tensions, Google has been holding informal meetings with staff opposed to Dragonfly to bring skeptics around.
Supporters argue that Google, even in limited form, will be an improvement over Chinese search engines and that the compromises the company is being asked to make have been made by other American tech giants.
Poulson says that at a staff meeting, Brin justified Dragonfly by pointing out that no one had complained about Sidewinder, the app store project.
According to someone close to him, Brin’s about-face on China came as a result of traveling to the country at least three times since 2016, during which he met with Google staff, tinkered with Chinese apps, and on one occasion met with a champion Go player.
But many at Google don’t seem convinced.
One participant in the meetings says the C-suite seems paralyzed, caught between whatever fallout will come with proceeding in China and the costs of ignoring an enormous business opportunity.
Downey sees no room for moral ambiguity.
“Google has no principled excuse left for doing this,” he wrote in August.
His essay ended with the most damning of critiques for a company that’s always seen itself as above concerns about revenue and profit.
“Google,” Downey wrote, “is acting like a traditional company.” 

lundi 4 décembre 2017

Tech Quisling

Cook Kisses the Ring
By Tim Culpan

Tim Cook is desperate to hold onto any remaining scraps of the China market. 
That's a boon for the country's model for the internet, and the local players who dominate.
The Apple Inc. CEO, who last year stood up to the U.S. Federal Bureau of Investigation, took to the stage at China's annual internet conference this past weekend to kiss the ring and give his seal of approval for the way the government there tightly controls the flow of information.
“The theme of this conference -- developing a digital economy for openness and shared benefits -- is a vision we at Apple share,” Cook said. 
“We are proud to have worked alongside many of our partners in China to help build a community that will join a common future in cyberspace."
Ren Zhengfei, Robin Li and Pony Ma ought to have been grinning like Cheshire cats. 
The chiefs of Huawei Technologies Co.1 , Baidu Inc. and Tencent Holdings Ltd. have been great beneficiaries of Chinese censorship. 
Restricting the flow of information, you see, has worked out to be a handy little tool of trade protectionism.


The three Chinese companies have not only embraced domestic rules but actively assisted in enforcing them. 
Google Inc., on the other hand, famously withdrew from China after it decided not to comply with censorship rules, Facebook Inc. has been restricted from the start, while Apple has faced formidable headwinds from government and semi-government agencies.
Openness, shared benefits, common future? Huh?
I wasn't at the speech, but footage does not show Cook's tongue in his cheek. 
It's irrelevant whether he believes the words that he spoke. 
What matters is that landing major overseas CEOs -- including Google's Sundar Pichai and Cisco Systems Inc.'s Chuck Robbins -- not only gave legitimacy to authorities, but sent a signal to domestic rivals that their turf is safe. 
There's no sign that Facebook founder Mark Zuckerberg attended the conference, but his embrace of The Chinese Way is well documented.

Take Baidu. 
Revenue and profit have rebounded this year despite its search business model facing existential threats ranging from regulation to changing user behavior. 
That's because Baidu faces no credible competition in China, and derives negligible revenue from overseas.
Huawei, whose Western competitors ought to include Apple and Cisco, not only has home ground advantage in China but gets favorable treatment from government-backed telcos for its equipment and handsets, and is probably a recipient of Chinese foreign aid that's channeled back into network infrastructure built by the company.
The greatest winner of all is Tencent. 
The social media giant has its tentacles throughout all aspects of Chinese culture, yet barely exists outside of the Great Firewall. 
And why should it? 
Although China may soon reach peak WeChat, the company is leveraging its user base by adding more services such as payments and ads -- safe in the knowledge that neither Facebook nor Google are coming anytime soon.

Google, Facebook and even Cisco could thrive even if they didn't bother too much with the world's second-largest economy. 
But Cook's Apple is a little different. 
Huawei is coming for it, and so too is ZTE Corp., not just in the U.S. but globally. 
Apple derives almost 60 percent of its revenue from outside its home country, including close to 20 percent from China.
That's why it's so notable that the chief of a U.S. devices maker agreed to deliver a keynote speech at a Chinese internet conference: Information may be restricted, but hardware still roams free. 
For now.

Note
1. While Ren's current title is deputy chairman of Huawei, he is the founder and probably still calls the shots.