The New Copycats: How Facebook Squashes Competition From Startups - WSJ


50 bookmarks. First posted by girma 13 days ago.


At an all-hands meeting last summer, Facebook Chief Executive Mark Zuckerberg told employees they shouldn’t let pride get in the way of serving users, another way of saying they shouldn’t be afraid to copy rivals, according to someone who was at the meeting. The message became an informal internal slogan: “Don’t be too proud to copy.”

The odds are already stacked against it. The average smartphone user has about 89 apps on a device but uses only seven or eight daily, according to Verto Analytics. Facebook, Apple and Google dominate, commanding about 60% of the time and 80% of the ad dollars spent on mobile, the market-research firm says.


Facebook uses an internal database to track rivals, including young startups performing unusually well, people familiar with the system say. The database stems from Facebook’s 2013 acquisition of a Tel Aviv-based startup, Onavo, which had built an app that secures users’ privacy by routing their traffic through private servers. The app gives Facebook an unusually detailed look at what users collectively do on their phones, these people say.

The tool shaped Facebook’s decision to buy WhatsApp and informed its live-video strategy, they say. Facebook used Onavo to build its early-bird tool that tips it off to promising services and that helped Facebook home in on Houseparty.
23 hours ago by hakan
Facebook uses an internal database to track rivals, including young startups performing unusually well, people familiar with the system say. The database stems from Facebook’s 2013 acquisition of a Tel Aviv-based startup, Onavo, which had built an app that secures users’ privacy by routing their traffic through private servers. The app gives Facebook an unusually detailed look at what users collectively do on their phones, these people say.

The tool shaped Facebook’s decision to buy WhatsApp and informed its live-video strategy, they say. Facebook used Onavo to build its early-bird tool that tips it off to promising services and that helped Facebook home in on Houseparty.
video  facebook  privacy 
5 days ago by dsongman
Tech startups live by the rule that speed is paramount. Houseparty, creator of a hot video app, has an extra reason for urgency. Facebook Inc., a dominant force…
from instapaper
6 days ago by svs
Tech startups live by the rule that speed is paramount. Houseparty, creator of a hot video app, has an extra reason for urgency. Facebook Inc., a dominant force in Silicon Valley, is stalking the company, part of the social network’s aggressive mimicking of smaller rivals. via Pocket
Pocket 
7 days ago by tonyhue
Houseparty office in San Francisco this month. Photo: Jason Henry for The Wall Street Journal Tech startups live by the rule that speed is paramount.…
from instapaper
9 days ago by mjays
"The New Copycats: How Facebook Squashes Competition From Startups"
from twitter
10 days ago by peterjblack
the real take from this article isn't that facebook is xeroxing companies, it's that they set up a fuckin spy vpn
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10 days ago by riking
Tech startups live by the rule that speed is paramount. Houseparty, creator of a hot video app, has an extra reason for urgency. Facebook Inc., a dominant force in Silicon Valley, is stalking the company, part of the social network’s aggressive mimicking of smaller rivals. via Pocket
IFTTT  Pocket  feedly 
11 days ago by schmitz
What’s that thunderous noise? It’s Facebook chasing down every threat to its business via
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11 days ago by sriramv
Facebook uses an internal database to track rivals, including young startups performing unusually well, people familiar with the system say. The database stems from Facebook’s 2013 acquisition of a Tel Aviv-based startup, Onavo, which had built an a…
facebook  PrivacyKit  privacy  Houseparty  PrivacyKitForBusiness  privacybydesign  PrivacyPolicy 
11 days ago by loughlin
"It's free who cares" - Facebook uses an internal database to track rivals, including young startups performing unusually well, people familiar with the system say. The database stems from Facebook’s 2013 acquisition of a Tel Aviv-based startup, Onavo, which had built an app that secures users’ privacy by routing their traffic through private servers. The app gives Facebook an unusually detailed look at what users collectively do on their phones, these people say.
IFTTT  Facebook 
11 days ago by shaunkoh
Inside Facebook’s Institutional Policy of Copying Competitors
privacy  from twitter
11 days ago by amspatel
via Feedbin Starred Entries for joewiz@gmail.com
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11 days ago by joewiz
via Starred items from BazQux Reader http://ift.tt/1cAKc9M and IFTTT
Starred  items  from  BazQux  Reader 
11 days ago by stinkingpig
Tech startups live by the rule that speed is paramount. Houseparty, creator of a hot video app, has an extra reason for urgency. Facebook Inc., a dominant force…
from instapaper
11 days ago by kohlmannj
The New Copycats: How Facebook Squashes Competition From Startups via Digg https://www.wsj.com/articles/the-new-copycats-how-facebook-squashes-competition-from-startups-1502293444?utm_source=ifttt Tiny Houseparty had a promising video-chat app. Then the social-media giant noticed and started developing one of its own.
IFTTT  Digg  tech  technology 
11 days ago by joeo10
Tech startups live by the rule that speed is paramount. Houseparty, creator of a hot video app, has an extra reason for urgency. Facebook Inc., a dominant force in Silicon Valley, is stalking the company, part of the social network’s aggressive mimicking of smaller rivals.
article 
11 days ago by mud
We will cede privacy within apps, but outside -- oh brother. (via )
from twitter
11 days ago by transposition
Facebook buys VPN to see what non-users are doing. Paging .
from twitter_favs
11 days ago by aidan_walsh
Betsy Morris and Deepa Seetharaman, writing for The Wall Street Journal:

Facebook uses an internal database to track rivals, including young startups performing unusually well, people familiar with the system say. The database stems from Facebook’s 2013 acquisition of a Tel Aviv-based startup, Onavo, which had built an app that secures users’ privacy by routing their traffic through private servers. The app gives Facebook an unusually detailed look at what users collectively do on their phones, these people say.

The tool shaped Facebook’s decision to buy WhatsApp and informed its live-video strategy, they say. Facebook used Onavo to build its early-bird tool that tips it off to promising services and that helped Facebook home in on Houseparty.

So Facebook is using a VPN app that is supposed to protect users’ privacy to violate their privacy by analyzing which apps they use.

Also worth noting: in the iOS App Store, Onavo’s owner is still listed as “Onavo, Inc.”, not “Facebook”. I suspect a large number of Onavo users have no idea the app is owned by Facebook (I for one had never heard of it before this Journal story), and might think differently about entrusting their privacy to it if they knew.

 ★ 
via:daringfireball 
12 days ago by rufous
from Daring Fireball

Betsy Morris and Deepa Seetharaman, writing for The Wall Street Journal:

Facebook uses an internal database to track rivals, including young startups performing unusually well, people familiar with the system say. The database stems from Facebook’s 2013 acquisition of a Tel Aviv-based startup, Onavo, which had built an app that secures users’ privacy by routing their traffic through private servers. The app gives Facebook an unusually detailed look at what users collectively do on their phones, these people say.

The tool shaped Facebook’s decision to buy WhatsApp and informed its live-video strategy, they say. Facebook used Onavo to build its early-bird tool that tips it off to promising services and that helped Facebook home in on Houseparty.

So Facebook is using a VPN app that is supposed to protect users’ privacy to violate their privacy by analyzing which apps they use.

Also worth noting: in the iOS App Store, Onavo’s owner is still listed as “Onavo, Inc.”, not “Facebook”. I suspect a large number of Onavo users have no idea the app is owned by Facebook (I for one had never heard of it before this Journal story), and might think differently about entrusting their privacy to it if they knew.

 ★ 
ifttt  daringfireball 
12 days ago by josephschmitt
When Facebook acquired Tel Aviv-based mobile data analytics company Onavo in 2013, there was lot of speculation about why. Was it principally about opening up an office in Israel? Speeding up its mobile apps? Measuring Facebook ad performance versus other ad platforms? It turns out Onavo has also been converted into an internal database used to track rivals, including young startups performing unusually well, WSJ’s Betsy Morris and Deepa Seetharaman report. In addition to shaping Facebook’s purchase of WhatsApp, Onavo alerted the company to Houseparty, the group video app popular among teens. Now Facebook—which has adopted the informal internal slogan, “don’t be too proud to copy” (oh hai, Snapchat)--plans to launch a group video app, with the working-name “Bonfire,” in the fall. Here’s the takeaway for marketers: If you’ve discovered a hot new app to connect with your audience, you can bet your bottom dollar Facebook is one step ahead and is figuring out whether to buy it or mimic it and ultimately squash it. [ED NOTE: Behind WSJ $$ paywall]
Items-Worth-Reading-on-Social-Media-Week-32 
12 days ago by webgeek
Wie Facebook und andere Giganten Ideen von kleinen Firmen kopieren
from twitter
12 days ago by grzbielok
- pretty all encompassing embrace of user data - I wonder what Apple thinks about it given the privacy positioning of the iPhone?
facebook  privacy  totwitter 
12 days ago by renaissancechambara
Not surprised. Now, what? "The New Copycats: How Squashes From "
Startups  innovation  rfw  Competition  Facebook  from twitter
12 days ago by cveira
Tech startups live by the rule that speed is paramount. Houseparty, creator of a hot video app, has an extra reason for urgency. Facebook Inc., a dominant force…
from instapaper
12 days ago by toph
Tech startups live by the rule that speed is paramount. Houseparty, creator of a hot video app, has an extra reason for urgency. Facebook Inc., a dominant force…
from instapaper
12 days ago by louderthan10
RT : Great story on Facebook’s xeroxing of others’ products. Onavo still an amazing acquisition.
from twitter
12 days ago by jace
Houseparty office in San Francisco this month. Photo: Jason Henry for The Wall Street Journal Tech startups live by the rule that speed is paramount.…
from instapaper
12 days ago by matttrent
Tech startups live by the rule that speed is paramount. Houseparty, creator of a hot video app, has an extra reason for urgency. Facebook Inc., a dominant force…
from instapaper
12 days ago by leftyotter
Tiny Houseparty has a promising video-chat app—the social-media giant has noticed

How Facebook uses "early bird" warning system to scout popular new tech, then buy or copy it; sources; take away from an all hands: "Don't be too proud to copy"
facebook  competition  Strategy  wsj 
12 days ago by jorgebarba
Silicon Valley is dominated by a few titans.. that’s fundamentally altering the nature of America’s startup culture:
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12 days ago by dr3wster
Tech startups live by the rule that speed is paramount. Houseparty, creator of a hot video app, has an extra reason for urgency. Facebook Inc., a dominant force…
from instapaper
12 days ago by johnrclark
Sharp & important reporting on how tech giants undermine competition from start-ups via
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12 days ago by sclopit
Sharp & important reporting on how tech giants undermine competition from start-ups via
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12 days ago by Be_Optimistic
*great* WSJ piece on how Hooli tries to crush Pied Piper.... er, Facebook tries to crush Houseparty
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12 days ago by andriak
Lately, the titans also appear to be imitating smaller rivals more aggressively. In July, a week after the initial public offering of Blue Apron Holdings Inc., an Amazon subsidiary filed to trademark a meal-delivery kit with a tagline that echoed Blue Apron’s offering. Both Google and Facebook have taken aim at features on Snap. Inc.’s Snapchat platform. Amazon declined to comment. Google didn’t respond to requests for comment.
course 
13 days ago by aweissman
Telling this story makes zero sense from Houseparty’s perspective. Head scratcher.
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13 days ago by flyosity
Heckuva piece by on how FB squashes competition. 'That would scare the crap out of me.'
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13 days ago by girma
Heckuva piece by on how FB squashes competition. 'That would scare the crap out of me.'
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13 days ago by joha04