❌ China crushes Big Tech

PLUS: Headspace’s mindfulness merger. August 31, 2021 [The Hustle] [The Hustle]( What’s the best purchase you’ve ever made for $100 or less? Perhaps it’s a rice cooker. Or maybe a used back scratcher. Did you spend $100 on it? Or maybe $2? Whatever it is, we want to know. Tell us about it [here](. Today’s rundown: - China cracks down hard: From algorithm rules to child gaming restrictions. - Chart: Food and drink companies face more lawsuits than ever. - Breath in...breath out: Headspace and Ginger merge to dominate mental health. Let’s do it. The big idea [map of China]( China’s huge crackdown on tech, explained From Apple to Facebook to Google, Big Tech firms in the US are facing various antitrust lawsuits. But at present, these legal battles look like mosquito bites compared to what’s happening in China: Since February, Chinese tech companies have lost over [$1T]( (that’s trillion) in market value in the wake of regulatory action. The draft of new regulations... … came out last week that will put restrictions on how China’s tech firms can use their algorithms. Per [TechCrunch](, the changes will affect a wide range of categories, including: - Short videos - News aggregation - Ride-hailing - Food delivery - E-commerce The proposal is stricter than the EU’s data rules Under these laws, algorithms would have to: - Align with the state: Recommendations “should uphold mainstream values” and “not endanger national security.” - Be more transparent: Tech firms must create a system for the review of “algorithmic mechanisms.” - Be good for users: By not feeding them “addictive” content. - Be available to authorities: In case of a police investigation. These guidelines are just the start. China also just announced restrictions for online gaming As of Sept. 1, kids under 18 will only be allowed to play 1 hour per day  from 8pm-9pm on Fridays, weekends, and holidays. The government is acting out of concern that overgaming causes health issues. Gaming giants like $560B+ Tencent will enforce this rule with facial recognition and “real name verification systems,” per [The Guardian](. While the broader algorithm draft regulation has yet to pass, we have a feeling the 1-party state will find a way to make it official. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=China%E2%80%99s+huge+crackdown+on+tech%2C+explained%0Ahttps%3A%2F%2Fthehustle.co%2F08312021-China-tech-crackdown%3Futm_campaign%3DChina%2BTech%2BCrackdown%26utm_content%3D08312021-China-tech-crackdown%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( SNIPPETS NEW! Introducing our new and improved [Snippets](. You can now get extra snippets on your favorite topics. Follow the button below to get started. (It takes less than 30 seconds!) Oil and gas prices jumped as Hurricane Ida made [landfall]( in Louisiana. Energy production was shut down in the Gulf of Mexico ahead of the storm (stay safe out there!). Stonks! PayPal may launch a stock-trading [platform]( amidst the retail boom. The project is currently called “Invest at PayPal”. Zoom is slowing down: The video conferencing giant said sales in the latest quarter jumped [+54%]( YoY...but this is markedly slower than last quarter’s growth of +191% YoY (!). Toast of the town: Toast, the restaurant software platform, has [filed]( for an IPO and plans to raise $100m in the process. Metaverse monopoly: The EU [announced]( plans to open a formal investigation into Nvidia’s $54B acquisition of Arm amid competition concerns. For the good of gaming: Unity [acquired]( Oto, a platform that uses AI to analyze audio chat and identify toxic gaming environments. Join the 93,624 others who are now enjoying extra, personalized snippets. Click the button👇 to choose your favorite topics and see your list grow in tomorrow’s email. [Personalize Your Snippets]( Au Naturel [food and beverage lawsuits by year]( The food and drink industry is facing a swarm of class action lawsuits False advertising [lawsuits]( in the food and drink space are popping up everywhere: - In June, Post agreed to a $15m settlement for marketing sugary cereals with healthy claims. - McCormick is facing a $3m settlement for advertising artificial ingredients as “natural.” Elsewhere, one lawsuit [claims]( Frito-Lay’s “hint of lime” chips don’t actually contain limes, and another says TGI Fridays’ “onion snacks” have no onions. (Related: Check out this hilarious [parody]( about how companies came up with the term “all natural.”) [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=The+food+and+drink+industry+is+facing+a+swarm+of+class+action+lawsuits%0Ahttps%3A%2F%2Fthehustle.co%2F08312021-food-and-beverage-lawsuits%3Futm_campaign%3DChina%2BTech%2BCrackdown%26utm_content%3D08312021-food-and-beverage-lawsuits%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( Mental Health [Ginger and Headspace logos]( Ginger and Headspace are making a gigantic mental health platform Two big apps in the mental health space are [coming together]( like a wellness Voltron. Headspace Health is a planned merger between: - Headspace: A Santa Monica-based meditation app with 70m users, and 2.1k companies using its B2B option. - Ginger: A San Francisco-based app that offers video therapy with licensed practitioners, plus behavioral health coaches you can text. Over 25m people have access to Ginger through health plans. Combined, they’ll offer online mental health services including science-backed mindfulness and meditation tools, coaching, therapy, and psychiatry. Headspace Health expects to reach ~100m people across 190+ countries through both D2C apps and 2.7k+ enterprise and health plan partners. And it’ll be worth an estimated ~$3B, [per]( Yahoo Finance. Online mental health services surged amid the pandemic Headspace doubled its subscriber count while Ginger’s revenue [tripled](. Meanwhile: - Meditation app Calm saw downloads increase 3x - Therapy app Talkspace saw 144% YoY growth in Q1 and went public in June But is it here to stay? And does it work? University of Memphis researchers [found]( therapeutic interventions worked just as well online, and even better for women. Cognitive behavioral therapy (CBT) was [found]( to be just as effective online, though some techniques were better in person. Online therapy can also be more accessible. There’s no commute and users can connect with any doctor in their state, making it easier to find professionals from certain demographics or with specific focuses. Btw, if you’re looking for some mental wellness yourself, Healthline listed its [top 10 favorite apps](. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=Ginger+and+Headspace+are+making+a+gigantic+mental+health+platform%0Ahttps%3A%2F%2Fthehustle.co%2F08312021-Ginger-Headspace%3Futm_campaign%3DChina%2BTech%2BCrackdown%26utm_content%3D08312021-Ginger-Headspace%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( AROUND THE WEB ☀️On this day: In 1955, General Motors’ William G. Cobb [debuted]( his Sunmobile, the 1st solar-powered car in the world, at an auto show in Chicago. 🐾Haha: Do you ever feel like someone’s watching you? Is it… [this corgi](? 🖌️That’s cool: Artist Bas Uterwijk [uses AI]( to make portraits of both historical and fictional figures, including Cleopatra, Elizabeth I, and Juliet Capulet. To do so, he combines several references, then tweaks the image. 🔮Cure boredom: Think of a person, character, object, or animal, and the great [Akinator]( will try to guess it. 💻Life hack: Did you [know]( your AirPods can attach to your MacBook for safe keeping? Yeah, neither did anyone else, apparently. 💡Useful: Need a quick backdrop for your website? This [site]( has a whole bunch of free textures. Meme of the day [meditation meme] Scary accurate (Source: Twitter / @Nishuane) SHARE THE HUSTLE [Hustle Cons Greatest Hits ebook]( Over the years, we’ve learned… secrets. The business secrets, tips, and tricks that have helped founders go from zero to millions -- and even billions -- of dollars. Want to see ‘em? Just refer 3 more friends to The Hustle and we’ll send you our curated set of interviews with founders from brands like Zola, AWAY, Vungle, Bonobos, and more. Here’s a message you can use to share with your friends: Hey! Do you read The Hustle? 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