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EU Fines Amazon €746M for Misuse of Private Data

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Amazon has been investing in India

Amazon has been caught on the European Union’s antitrust web amid intensified regulatory moves by the bloc to curtail the excesses of tech giants, especially the misuse of people’s private information.

The e-commerce giant faces a record-breaking €746 million (roughly $887 million) fine after a European Union data privacy regulator said it had violated the bloc’s signature privacy law, known as GDPR, in an advertising-related decision, CNN Business reports.

The fine was imposed on July 16 and disclosed Friday in a financial filing. It is the largest in the law’s three-year history, followed by Google’s 2019 fine of €50 million.

Regulators said Amazon’s processing of personal data didn’t comply with GDPR requirements, and the company acknowledged it has been ordered to change its business practices.

Amazon said the regulatory decision was “without merit” and added that it plans to “defend ourselves vigorously in this matter.”

“The decision relating to how we show customers relevant advertising relies on subjective and untested interpretations of European privacy law, and the proposed fine is entirely out of proportion with even that interpretation,” the company said.

The penalty for the alleged violation was imposed by data regulators in Luxembourg, where Amazon has its European headquarters. A spokesperson for the Luxembourg data authority, CNPD, declined to comment, citing the ongoing nature of the legal proceeding.

The fine marks the latest example of European regulators zeroing in on Big Tech. Officials in Europe and the UK have increasingly been scrutinizing the business practices of companies including Amazon, Apple, Facebook and Google amid allegations they have harmed competition and abused consumer privacy. GDPR, or the General Data Protection Regulation, seeks to rein in how digital platforms use consumer data and to regulate data breaches.

In a further statement to CNN Business, Amazon said customer information had not been leaked or exposed.

“Maintaining the security of our customers’ information and their trust are top priorities,” the statement said. “There has been no data breach, and no customer data has been exposed to any third party. These facts are undisputed.”

Under the EU’s privacy law, violations can carry penalties of up to €20 million or 4% of a company’s global revenue, whichever is higher. The EU in recent times, has added amendments to its existing antitrust laws to deal with accelerating complaints of misuse of private data, anti-competition and monopolistic practices by tech companies.

Google, Apple and Facebook were regulars in the controversy, and have been occasionally fined by the watchdogs. The €746 million Amazon’s fine shows the GDPR’s determination to escalate its regulatory responsibility and make a deterrent statement.

A Huge Milestone – Thank You Many Tekedia Mini-MBA Corporate Clients

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A few hours ago, we hit a major milestone on the total number of corporate clients in Tekedia Mini-MBA [click here to join the next edition which begins Sept 13 2021]. Using these samples, we write to thank all the companies which have believed in this 17-month business school. 

I want to thank our teams in US & Nigeria, global partners in Kenya, Cameroon, Ghana, USA, etc.  We are welcoming Sierra Leone SMEs in coming weeks through a partnership in that amazing nation. I also want to thank Ranveer S. Chauhan who opened Singapore and Asia for Tekedia, helping us to unlock many members. 

Our core philosophy is to remain the best destination to understand African business, markets and the world from the African lens. We do all to be different, not inspiring to be like another American business school; we want to stay on the nativity of core business tenets, out of Africa.  Yes, being local even as you think global.

We did all with minimal advertisement. Our ad budget last year was $173 which we have bumped up to a whopping $500 this year. Yet, we will still depend on your referrals and recommendations as we create products you truly love. I thank all our members who after attending our programs recommended them to their companies.

Our courses are being refreshed to remain valuable and current, even as we unveil a new program titled “Business Growth Playbooks with Ndubuisi Ekekwe”. Structured for two-hour live (Zoom) sessions on Saturdays to run for 8 weeks, the cost is $60 or N20,000. At the end, Tekedia Institute will issue a Certificate on Business Growth Playbooks. This program will draw from my experience on investing/working in dozens of companies, lessons learned and how to grow businesses with specific focus on Africa. The first edition will begin Sept 4, 2021. You can go here and pay.

Good People, we want to welcome you and your team to Tekedia Mini-MBA. Begin here 

Osun 2022 in an Era of Big Power Struggle Analytics

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It is not strange in the Nigerian politics that incumbent political leaders always ensure installation of their successors. Governors want to have successors that they have interest in. Presidents want to have successors who are most likely to do their bidding after leaving office. In most cases, according to political analysts and social commentators, Nigerian politicians do not want to leave office for successors who would abandon their initiated policies and programmes. Despite these, we have seen a number of situations where the anointed successors worked against the interest of their ‘political godfathers’ few months and years after.

As Osun people have less than a year to go to another poll, our analyst takes a loot at the ongoing power struggle between Governor Isiaka Gboyega Oyetola, the current Osun governor and Engineer Rauf Aregbesola, the immediate past governor and Minister of Interior. While Engineer Aregbesola hold the ace, the current governor was the Chief of Staff to him. This, according to our analyst, and Governor Oyetola’s relationship with Senator Bola Ahmed Tinubu, the All Progressives Congress’ Chieftain, helped Alhaji Oyetola in winning the 2018 governorship election. The election was keenly contested between the All Progressives Congress and the People’s Democratic Party, which fielded Senator Nurudeen Ademola Adeleke as its candidate.

According to the Independent National Electoral Commission, the state election holds on July 16, 2022. Party primaries are scheduled for between February 16 and March 12. Like what Osun people were exposed to during the 2018 election, campaign activities have started indirectly without recourse to the electoral body guidelines. As expected, the rift between the two leading parties [APC and PDP] is growing every day. Conflicts within the parties are also having different phases every day. Some members have been punished for going against the parties’ policies, rules and constitutional provisions. For those who felt cheated, alternative solution has been the creation of groups.

No doubt, the growing power struggle will have impacts on the chance of the ruling party in 2022. Already, the proliferation of social media pages or accounts among the Ileri-Oluwa group more than The Osun Progressives group affords the political structure of the governor to surpass the Osun Progressives group, which has adherents of Engineer Aregbesola.

Our analyst reports that during 2018 electioneering campaign, De-Rauf, Oranmiyan, R-Connect, Progressives Media Team among others within the political structure of Engineer Aregbesola and those established by the loyalists of governor Oyetola collectively promoted and marketed Oyetola candidacy. Now, the collective communication strategy has turned to individualistic communication strategy as members of each camp provide narratives and counter-narratives on how former governor mismanaged the state and why he needs to allow the current governor to govern the state without his [Aregbesola] interference.

These narratives have significantly contributed to how the people in the state see the two politicians in relation to their different political groups, our analysis reveals. Our analysis shows that people are seeing IleriOluwa group more positive in the Osun Progressives group than seeing TOP positive in IleriOluwa. Seeing IleriOluwa negative in TOP is much than seeing TOP negative in IleriOluwa. These have significantly contributed to Osun peoples’ interest in the two personalities between January 1 and July 31, 2021, our analysis reveals. With 71.4% accuracy of our modeling of positive and negative frames of viewing IleriOluwa and 85.7% of the TOP, we can say that the two groups are having divided share of the people’s mind in the state on the digital sphere.

Exhibit 1: Osun Population Interest in Aregbesola and Oyetola [January-July, 2021]

Based on the insights and our earlier position on the impacts of the ongoing power struggle between the two politicians, we expect significant influence on governance in the state early 2022 because the two camps will have a few months to the election day. They are expected to strategise and restrategise towards winning party primary election by March 2022.

The CEO Becomes The CEO of “Habari Banking” – Guaranty Trust Holding Co Plc

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A community member sent this note to me: “Good day Sir. Just as you postulated that GTBank will transform into a holding company to keep its CEO Segun Agbaje. That happens Sir, You’re a business oracle, you see from very far. Please cut soap for me Sir.” Indeed, he was referring to many posts I made, informing our community that Mr Agbaje would not retire but ascend into  a HoldCo (holding company) CEO, post GTBank.

Though I began sharing that publicly in 2020 in many posts in Tekedia; see this ,”GTBank has a different incentive: the GCEO is hitting his 10th CEO tenure (max by regulations) and to remain as boss, he needs a holdco to control the bank,” my first call was in an investment bank retreat where I used one statement the ace banker made in 2016 to extrapolate my hypothesis.

When Mr Agbaje used the word “habari” which I extended to Habari banking (Nov 2018), I told them in New York that he would remain because only him understood the Habari banking philosophy, and that Habari banking was a holdco company which will become evident in 2021, just on his 10th year as a bank CEO. I explained that he could not use holdco as that would be premature but he would be there  later. By regulation, bank CEOs can serve a maximum of ten years in Nigeria.

I want to congratulate Mr Agbaje. He is now the big boss of Guaranty Trust Holding Co Plc which has GTBank Limited as the largest subsidiary. 

Hello Divorce, Online Divorce Startup, Secures $2m Seed Round to Make Divorce Easy and Affordable

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The rising rate of divorce, which comes with many challenges and hefty financial obligations, is creating a huge market that is yet to be tapped. Seeing the opportunity the challenges present, online divorce startup, Hello Divorce, is developing a platform to make it easier and affordable for people to get divorce.

The California-based company announced Thursday it has secured $2 million seed round led by CEAS, with additional funds coming from Lightbank, Northwestern Mutual Future Ventures, Gaingels and a group of individuals including Clio CEO Jack Newton, WRG’s Lisa Stone and Equity ESQ led by Ed Diab.

The company was founded in 2018 by family law attorney Erin Levine, so that couples getting a divorce could access “affordable meaningful legal counsel” and resources beyond online forms. Levine told TechCrunch that the billable hours model for lawyers is “an antiquated process” for consumers that want an easier and clearer path to divorce.

“Right now, lawyers are the keeper of information, and clients keep paying until the divorce is done,” she said. “Divorce is more than forms. It is a challenging time, and most people need or want support. I saw a big hole there to use technology and fixed fees to put couples in the driver’s seat and take down that level of conflict.”

With this seed round, the company plans on rapidly scaling legal filing options across the U.S., improving its ground-breaking product, and giving consumers more of the content and services they need to feel informed and in control of their divorce process.

Hello Divorce provides software and accessible legal services starting at $99 for a do-it-yourself option or for up to an average of $2,000 for legal help along the way to finish the divorce process in a third of the time, and completely remote.

TechCrunch reported Levine saying that most people spend between two and five years contemplating divorce, and during that time are scared they will not be able to afford it, and if they have children, are afraid of losing them. Of those people, 80% won’t be able to access counsel. The larger percent of people in the divorce bracket creates growth potential for the startup.

Though the company is already profitable, Levine went after venture capital to be able to build an infrastructure and tap into the guidance that CEAS and other investors, like Lightbank’s Eric Ong bring to the table, saying “it is clear what I do know and what I don’t know.”

Ong said he met Levine through co-investors on the round, who told him Hello Divorce was something he would resonate with. Lightbank invests in category-stage companies, and he was drawn to what Levine and her team were doing.

“They are a combination of industry expertise and thinking outside of the box,” he said. “Eighty percent of people are still not getting meaningful representation, and we looked for technology that would provide a customer value proposition and we didn’t find one until Hello Divorce.”

The company plans to use the seed funding to scale legal filing options across the U.S., on product development and new content and services to educate people coming to Hello Divorce’s website.

The service is already available in four states — California, Colorado, Texas and Utah. Levine said the choice of initial states was strategic: She is familiar with California law, while Colorado has a complex system for divorce. Texas does not have a streamlined way for same-sex couples to get divorces, something Levine said she wanted to tackle, and Utah has a new regulatory scheme. Up next, she is expanding to New York and Florida, where she will launch in a bilingual format.

Since 2018, Hello Divorce has grown 100% year over year, with divorce success rates of 95% after starting the process on the platform. Over the past year, the company received 2,000 inquiries related to how to shelter in place with someone while contemplating divorce and co-parenting during lockdown.

“The inquiries increased about staying or going, and what divorce will look like,” Levine said. “It will be awhile before we see the total effects of what divorce looks like following the pandemic.”

Statistics show there are an average of 750,000 divorces in the U.S. each year, and the average total cost of divorce can cost anywhere between $8,400 to $17,500 depending on what state you live in. Overall, some sources value the divorce industry at $50 billion annually.