Connect with us

Technologies

Welcome to the Era of Online Age Verification. Are You Ready to Identify Yourself?

The introduction of the UK’s Online Safety Act marks a shift in internet culture, the ripples of which are already being felt around the world.

Last Thursday morning I woke up to find I no longer had access to my messages on social network Bluesky. «You must complete age assurance in order to access this screen,» a pop-up notification told me.

It went on to say the local laws where I live mean that I need to verify I’m an adult to view mature content or send direct messages. I’m based in the UK, and the law Bluesky was referring to is the Online Safety Act, which came into force on Friday.

This piece of legislation requires web companies to ensure that people under the age of 18 don’t have access to harmful content, including porn and material relating to self-harm, suicide and eating disorders. If sites choose to allow this content, they must verify the ages of people using their platforms to confirm that they’re adults. Failure to do so could result in fines of £18 million or 10% of annual revenue, whichever is greater.

«Prioritising clicks and engagement over children’s online safety will no longer be tolerated in the UK,» Melanie Dawes, chief executive of regulator Ofcom, said in a statement. «Our message to tech firms is clear — comply with age-checks and other protection measures set out in our Codes, or face the consequences.»

Over the past few days, free VPNs shot to the top of the UK App Store charts as people have looked for ways to bypass the requirement to verify their ages. It should be noted that using free VPNs comes with it own set of risks, and isn’t recommended by online security experts.

The Online Safety Act might be a UK-specific law, but it affects companies based in the US and around the world, including Bluesky, Reddit, Discord, X, Porn Hub and Grindr — all of which have committed to «age-gating» features to protect young people from stumbling across harmful content.

It’s also emblematic of a bigger shift in internet culture, which is seeing age verification become a mainstream concern across the world. Increasingly, adults who want to keep accessing internet services, from mainstream social networks to porn sites, will have to prove their age. In other words, expect my Bluesky experience to be coming to the internet near you soon.

Earlier this month, the European Commission published an age verification app prototype that will help keep young people safe online in accordance with the EU’s Digital Services Act. We’re also starting to see the ripple effect in the US of the legislation the UK and EU have enacted, says Vaishnavi J, founder of online child safety consultancy Vys. Just last month, the US Supreme Court upheld a Texas law requiring porn sites to verify the age of all visitors. 

«State laws, advocacy campaigns, and growing parental demand in the US are all converging around the need for age assurance,» said J, who previously worked in the policy teams at Meta and Twitter. «Combine that with rapid advances in the tech ecosystem, and it’s no longer a question of if the US adopts age verification, but how and when.»

Safety vs. privacy

The Wild West nature of the internet and the ability to be largely anonymous often blurs the lines between spaces occupied by children and adults in a way that doesn’t happen in the offline world. This means children are often exposed to content many would consider inappropriate or harmful. According to Ofcom’s own research, around 1 in 10 children in the UK between the ages of 8 and 14 have watched online pornography — an activity the new age verification rules are designed to prevent.

Making the internet safer for children might be necessary and admirable, but age verification policies have also come under fire from digital rights and privacy groups.

I’ve been covering the UK’s attempts to bring in age verification since 2016. The government at the time decided it was too difficult and ultimately decided not to push ahead with plans aimed at age-gating porn sites in 2019.

The main objection to the legislation was the same then as it is now. Asking people to share their government-issued identification with private companies poses a threat to their privacy.

«The British public is being forced to hand over sensitive personal data to unregulated age assurance providers if they want to have full access to platforms such as Reddit and Bluesky or to use dating apps such as Grindr,» said James Baker, head of programming at Open Rights Group, in a statement ahead of the Online Safety Act coming into force.

«The threats and harms of phishing and hacking are very real, and will cause people online harms,» he added.

Open Rights Group also criticized the fact that people aren’t being given the right to choose how they verify their age. A number of verification methods exist, including age estimation via video selfie (a method gaming platform Roblox announced it was introducing last week), banking or credit card checks, third-party digital ID services, mobile carrier checks or photo ID matching. It’s up to the individual service which method they want to adopt, which could leave people vulnerable to problematic privacy policies.

As with many internet rules, there’s always some level of tradeoff involved when making the online world safe. In many ways, the idea of age verification is «common sense,» Mariana Olaizola Rosenblat, tech policy adviser at NYU’s Stern Business School, wrote in a blog post this week. At the same time, she added, depending on regulations and methods chosen, age verification can introduce serious privacy, security and access risks.

«In some cases, the systems employed are so flawed that they fail to protect minors while also excluding adults who should have lawful access,» said Rosenblat. «Policymakers must understand and carefully weigh these tradeoffs before mandating age verification at scale.»

Many critics of age verification have also argued that verification will be ineffective due to the wide availability of VPNs and teens’ ability to circumvent any rules attempting to limit their internet use.

Whether age verification is truly effective at keeping kids safe online is a question that can only be answered as the Online Safety Act and similar legislation comes into force. In the meantime, I — and possibly you — will need to be prepared to prove our identities and our ages if we’re to continue using the internet in the way we’ve become accustomed to using it.

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Continue Reading

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Continue Reading

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know

Continue Reading

Trending

Copyright © Verum World Media