A California court weighs in when Prop. 22 shows up. Google removes popular apps for data collection practices and the Senate subpoenas, Jack Dorsey and Mark Zuckerberg. This is your daily crisis for October 23, 2020.
The big story: Uber and Lyft defeated again in court
A California appeals court ruled that a new state law applies to Uber and Lyft drivers, meaning they must be classified as employees rather than independent contractors. The judge ruled that, contrary to the arguments of the ride sharing agencies, financial damage did not "lead to irreparable damage".
The decision won't go into effect for 30 days, however – suggesting that the real determining factor will be Proposition 22, a statewide electoral measure backed by Uber and Lyft that keeps drivers as contractors while doing things like minimum compensation and subsidies for that Health care guaranteed.
"This decision makes it more urgent than ever for voters to stand by the drivers and vote yes to Prop. 22," a Lyft spokesman told theinformationsuperhighway.
The technology giants
Google is removing 3 child Android apps with more than 20 million downloads for data collection violations. Researchers from the International Digital Accountability Council found that three popular and seemingly innocent-looking apps for younger users violated Google's data collection guidelines.
Huawei reports a slowdown in growth as its business "faces major challenges". The full impact of the US trade restrictions has not yet been recognized as the Huawei government has granted several exemptions.
Senate subpoenas could force Zuckerberg and Dorsey to testify on the New York Post controversy – The Senate Judiciary Committee voted to issue subpoenas for Facebook's Mark Zuckerberg and Twitter's Jack Dorsey.
Startups, Financing and Venture Capital
Quibi Says It Will Close In Early December – A newly released support page on the Quibi website says streaming will end "on or around December 1, 2020".
mmhmm, Phil Libin's new startup, is acquiring Memix to add advanced filters to its video presentation toolkit. Memix has developed a number of filters that you can apply to video to change the lighting, background details, or the entire screen.
The Nordic challenger bank Lunar is raising 40 million euros for the Series C and plans to move into the "buy now, pay later" area. Lunar started out as an app for personal finance managers, but acquired a full banking license in 2019.
Advice and analysis of extra crunch
That's how fast a few dozen startups grew in the third quarter of 2020 – this comes as close to private company earnings reports as we can get.
The Short Strange Life of Quibi – Everything you need to know about Quibi history, all in one place.
(Reminder: Extra Crunch is our membership program that aims to democratize information about startups. You can sign up here.)
France is renaming the contact tracing app to increase downloads. The French contact tracing app has been updated and is now called TousAntiCovid. This means "Everyone against Covid".
Agencies propose a bill to limit the president's internet killing desk – The bill would restrict the president's ability to shut down the internet at will.
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