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Grindr on the hook for €10M over GDPR consent violations

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Grindr, a gay, bi, trans and queer hook-up app, is on the hook for a penalty of NOK100,000,000 (aka €10M or ~$12.1M) in Europe.

Norway’s data protection agency has announced it’s notified the US-based company of its intention to issue the fine in relation to consent violations under the region’s General Data Protection Regulation (GDPR) which sets out strict conditions for processing people’s data.

The size of the fine is notable. GDPR allows for fines to scale up to 4% of global annual turnover or up to €20M, whichever is higher. In this case Grindr is on the hook for around 10% of its annual revenue, per the DPA. (Although the sanction is not yet final; Grindr has until February 15 to submit a response before the Datatilsynet issues a final decision.)

“We have notified Grindr that we intend to impose a fine of high magnitude as our findings suggest grave violations of the GDPR,” said Bjørn Erik Thon, DG of the agency, in a statement. “Grindr has 13.7 million active users, of which thousands reside in Norway. Our view is that these people have had their personal data shared unlawfully. An important objective of the GDPR is precisely to prevent take-it-or-leave-it ‘consents’. It is imperative that such practices cease.”

Grindr has been contacted for comment.

Last year a report by Norway’s Consumer Council (NCC) delved into the data sharing practices of a number of popular apps in categories such as dating and fertility. It found the majority of apps transmitted data to “unexpected third parties”, with users not clearly informed how their information was being used.

Grindr was one of the apps featured in the NCC report. And the Council went on to file a complaint against the app with the national DPA, claiming unlawful sharing of users’ personal data with third parties for marketing purposes — including GPS location; user profile data; and the fact the user in question is on Grindr.

Under the GDPR, an app user’s personal data may be legally shared if you obtain their consent to do so. However there are a set of clear standards for consent to be legal — meaning it must be informed, specific and freely given. The Datatilsynet found that Grindr had failed to meet this standard. 

It said users of Grindr were forced to accept the privacy policy in its entirety — and were not asked if they wanted to consent with the sharing of their data to third parties.

Additionally, it said sexual orientation could be inferred by a user’s presence on Grindr; and under regional law such sensitive ‘special category’ data carries an even higher standard of explicit consent before it can be shared (which, again, the Datatilsynet said Grindr failed to get from users).

“Our preliminary conclusion is that Grindr needs consent to share these personal data and that Grindr’s consents were not valid. Additionally, we believe that the fact that someone is a Grindr user speaks to their sexual orientation, and therefore this constitutes special category data that merit particular protection,” it writes in a press release.

“The Norwegian Data Protection Authority considers that this is a serious case,” added Thon. “Users were not able to exercise real and effective control over the sharing of their data. Business models where users are pressured into giving consent, and where they are not properly informed about what they are consenting to, are not compliant with the law.”

The decision could have wider significance as a similar ‘forced consent’ complaint against Facebook is still open on the desk of Ireland’s data protection watchdog — despite being filed back in May 2018. For tech giants that have have set up a regional base in Ireland, and made an Irish entity legally responsible for processing EU citizens’ data, GDPR’s one-stop-shop mechanism has led to considerable delays in complaint enforcement.

Grindr, meanwhile, changed how it obtains consent in April 2020 — and the proposed sanction deals with how it was handling this prior to then, from May 2018, when the GDPR came into force.

“We have not to date assessed whether the subsequent changes comply with the GDPR,” the Datatilsynet adds.

After its report last year, the NCC also filed complaints against five of the third parties who it found to be receiving data from Grindr: MoPub (owned by Twitter), Xandr (formerly known as AppNexus), OpenX Software, AdColony, and Smaato. The DPA notes that those cases are ongoing.

Following the NCC report in January 2020, Twitter told us it had suspended Grindr’s MoPub account while it investigated the “sufficiency” of its consent mechanism. We’ve reached out to Twitter to ask whether it ever reinstated the account and will update this report with any response.

European privacy campaign group noyb, which was involved in filing the strategic complaints against Grindr and the adtech companies, hailed the DPA’s decision to uphold the complaints — dubbing the size of the fine “enormous” (given Grindr only reported profits of just over $30M in 2019, meaning it’s facing losing about a third of that at one fell swoop).

noyb also argues that Grindr’s switch to trying to claim legitimate interests to continue processing users’ data without obtaining their consent could result in further penalties for the company. 

“This is in conflict with the decision of the Norwegian DPA, as it explicitly held that “any extensive disclosure … for marketing purposes should be based on the data subject’s consent“,” writes Ala Krinickytė, data protection lawyer at noyb, in a statement. The case is clear from the factual and legal side. We do not expect any successful objection by Grindr. However, more fines may be in the pipeline for Grindr as it lately claims an unlawful ‘legitimate interest’ to share user data with third parties — even without consent. Grindr may be bound for a second round.” 

Lyron Foster is a Hawaii based African American Musician, Author, Actor, Blogger, Filmmaker, Philanthropist and Multinational Serial Tech Entrepreneur.

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Qualcomm veteran to replace Alain Crozier as Microsoft Greater China boss

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Microsoft gets a new leader for its Greater China business. Yang Hou, a former executive at Qualcomm, will take over Alain Crozier as the chairman and chief executive officer for Microsoft Greater China Region, according to a company announcement released Monday.

More to come…

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Autonomous drone maker Skydio raises $170M led by Andreessen Horowitz

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Skydio has raised $170 million in a Series D funding round led by Andreessen Horowitz’s Growth Fund. That pushes it into unicorn territory, with $340 million in total funding and a post-money valuation north of $1 billion. Skydio’s fresh capital comes on the heels of its expansion last year into the enterprise market, and it intends to use the considerable pile of cash to help it expand globally and accelerate product development.

In July of last year, Skydio announced its $100 million Series C financing, and also debuted the X2, its first dedicated enterprise drone. The company also launched a suite of software for commercial and enterprise customers, its first departure from the consumer drone market where it had been focused prior to that raise since its founding in 2014.

Skydio’s debut drone, the R1, received a lot of accolades and praise for its autonomous capabilities. Unlike other consumer drones at the time, including from recreational drone maker DJI, the R1 could track a target and film them while avoiding obstacles without any human intervention required. Skydio then released the Skydio 2 in 2019, its second drone, cutting off more than half the price while improving on it its autonomous tracking and video capabilities.

Late last year, Skydio brought on additional senior talent to help it address enterprise and government customers, including a software development lead who had experience at Tesla and 3D printing company Carbon. Skydio also hired two Samsara executives at the same time to work on product and engineering. Samsara provides a platform for managing cloud-based fleet operations for large enterprises.

The applications of Skydio’s technology for commercial, public sector and enterprise organizations are many and varied. Already, the company works with public utilities, fire departments, construction firms and more to do work including remote inspection, emergency response, urban planning and more. Skydio’s U.S. pedigree also puts it in prime position to capitalize on the growing interest in applications from the defense sector.

a16z previously led Skydio’s Series A round. Other investors who participated in this Series D include Lines Capital, Next47, IVP and UP.Partners.

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Space startup Gitai raises $17.1M to help build the robotic workforce of commercial space

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Japanese space startup Gitai has raised a $17.1 million funding round, a Series B financing for the robotics startup. This new funding will be used for hiring, as well as funding the development and execution of an on-orbit demonstration mission for the company’s robotic technology, which will show its efficacy in performing in-space satellite servicing work. That mission is currently set to take place in 2023.

Gitai will also be staffing up in the U.S., specifically, as it seeks to expand its stateside presence in a bid to attract more business from that market.

“We are proceeding well in the Japanese market, and we’ve already contracted missions from Japanese companies, but we haven’t expanded to the U.S. market yet,” explained Gitai founder and CEO Sho Nakanose in an interview. So we would like to get missions from U.S. commercial space companies, as a subcontractor first. We’re especially interested in on-orbit servicing, and we would like to provide general-purpose robotic solutions for an orbital service provider in the U.S.”

Nakanose told me that Gitai has plenty of experience under its belt developing robots which are specifically able to install hardware on satellites on-orbit, which could potentially be useful for upgrading existing satellites and constellations with new capabilities, for changing out batteries to keep satellites operational beyond their service life, or for repairing satellites if they should malfunction.

Gitai’s focus isn’t exclusively on extra-vehicular activity in the vacuum of space, however. It’s also performing a demonstration mission of its technical capabilities in partnership with Nanoracks using the Bishop Airlock, which is the first permanent commercial addition to the International Space Station. Gitai’s robot, codenamed S1, is an arm–style robot not unlike industrial robots here on Earth, and it’ll be showing off a number of its capabilities, including operating a control panel and changing out cables.

Long-term, Gitai’s goal is to create a robotic workforce that can assist with establishing bases and colonies on the Moon and Mars, as well as in orbit. With NASA’s plans to build a more permanent research presence on orbit at the Moon, as well as on the surface, with the eventual goal of reaching Mars, and private companies like SpaceX and Blue Origin looking ahead to more permanent colonies on Mars, as well as large in-space habitats hosting humans as well as commercial activity, Nakanose suggests that there’s going to be ample need for low-cost, efficient robotic labor – particularly in environments that are inhospitable to human life.

Nakanose told me that he actually got started with Gitai after the loss of his mother – an unfortunate passing he said he firmly believes could have been avoided with the aid of robotic intervention. He began developing robots that could expand and augment human capability, and then researched what was likely the most useful and needed application of this technology from a commercial perspective. That research led Nakanose to conclude that space was the best long-term opportunity for a new robotics startup, and Gitai was born.

This funding was led by SPARX Innovation for the Future Co. Ltd, and includes funding form DcI Venture Growth Fund, the Dai-ichi Life Insurance Company, and EP-GB (Epson’s venture investment arm).

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