Tag: big tech

EU Telcos: ‘There Would Be No Netflix, Google Without Us’

The battle over who will pay for EU infrastructure upgrades is heating up, with the telcos saying Big Tech owes them.

The EU is looking to the future and trying to determine how critical network infrastructure will be funded. One of the leading proposals involves charging Big Tech companies, especially those responsible for the bulk of traffic, to help fund the upgrades. Needless to say, such a proposal is not popular with the tech industry.

In a statement to CNBC, however, Michael Trabbia, chief technology and innovation officer for France’s Orange, makes the case that Big Tech companies wouldn’t enjoy the success they do without the telecom operators.

“Without the telcos, without the network, there is no Netflix, there is no Google,” said Trabbia.

Similarly, Deutsche Telekom CEO Tim Hoettges asked why Big Tech couldn’t “at least a little bit, contribute to the efforts and the infrastructure which we are building here in Europe.”

The proposal is just the latest challenge Big Tech is facing amid growing antitrust scrutiny, privacy, and security concerns.

March 11, 2023
National Cyber Strategy Puts Cybersecurity Burden on Big Tech

The White House unveiled its National Cyber Strategy, shifting the burden of providing security from individuals to Big Tech.

Cybersecurity has become a major issue for individuals, businesses, and government agencies, with hardly a day going by without disclosure of another data breach. According to CNBC, a key component of the new strategy is putting the burden of protection on Big Tech, the segment best equipped to address security issues.

“The president’s strategy fundamentally reimagines America’s cyber social contract,” Acting National Cyber Director Kemba Walden said during a press briefing on Wednesday. “It will rebalance the responsibility for managing cyber risk onto those who are most able to bear it.”

Walden added, “the biggest, most capable and best-positioned actors in our digital ecosystem can and should shoulder a greater share of the burden for managing cyber risk and keeping us all safe.”

The strategy document emphasizes the importance of the public and private sectors working together:

The most capable and best-positioned actors in cyberspace must be better stewards of the digital ecosystem. Today, end users bear too great a burden for mitigating cyber risks. Individuals, small businesses, state and local governments, and infrastructure operators have limited resources and competing priorities, yet these actors’ choices can have a significant impact on our national cybersecurity. A single person’s momentary lapse in judgment, use of an outdated password, or errant click on a suspicious link should not have national security consequences. Our collective cyber resilience cannot rely on the constant vigilance of our smallest organizations and individual citizens.

Instead, across both the public and private sectors, we must ask more of the most capable and best- positioned actors to make our digital ecosystem secure and resilient. In a free and interconnected society, protecting data and assuring the reliability of critical systems must be the responsibility of the owners and operators of the systems that hold our data and make our society function, as well as of the technology providers that build and service these systems. Government’s role is to protect its own systems; to ensure private entities, particularly critical infrastructure, are protecting their systems; and to carry out core governmental functions such as engaging in diplomacy, collecting intelligence, imposing economic costs, enforcing the law, and, conducting disruptive actions to counter cyber threats. Together, industry and government must drive effective and equitable collaboration to correct market failures, minimize the harms from cyber incidents to society’s most vulnerable, and defend our shared digital ecosystem.

The National Cyber Strategy echoes sentiments voiced by Google, in which the company threw its support behind companies being held responsible for cybersecurity. Google also emphasized the need for companies to build systems that are fundamentally more secure — rather than offloading that burden on the average user.

March 2, 2023
EU Considers Making Big Tech Pay For Infrastructure Upgrades

The EU Commission is considering a proposal that would see tech companies charged for network infrastructure upgrades.

The Commission is trying to address challenges likely to arise as the technological landscape continues to evolve. Cloud computing, edge computing, and AI are just a few of the transformative technologies that could have a profound impact on infrastructure requirements.

The Commission outlined its concerns in a survey:

The aim is to gather views on the changing technological and market landscape and how it may affect the sector for electronic communications. It also touches upon the types of infrastructure and amount of investments that Europe needs to lead the digital transformation in the coming years.

Digital markets and in particular connectivity markets are facing transformative technological and market developments. These include cloud data storage, the transition to edge computing, the usability of the Metaverse, artificial intelligence, virtual reality and more. Moreover, such developments are not isolated from the challenging geopolitical and the broader economic situation.

These various technologies will require “massive investments” in infrastructure:

New generations of mobile communications will require massive investments in fibre and densification of antennas. New performance will enable critical use cases and the connection of objects. These developments will likely have a significant impact on the business model of providers of electronic communications networks (“ECNs”), as well as of other actors in the value chain. In light of this, it is important to broadly reflect on how to secure a resilient connectivity architecture based on a sustainable business model able to support our digital future in the EU.

To be clear, the Commission has not publicly endorsed any possibility, but TechCrunch says it is leaning toward a telco proposal that would see Big Tech companies charged for the upgrades. In particular, the EU is looking at those companies that are responsible for the majority of online traffic, such as Google, Meta, Amazon, Apple, Microsoft, and Netflix.

February 24, 2023
FTC Commissioner Resigns, Pens Scathing Op-Ed About Lina Khan

FTC Commissioner Christine Wilson is resigning, penning a scathing op-ed in The Wall Street Journal condemning Chairwoman Lina Khan.

Lina Khan was a controversial choice to lead the Federal Trade Commission, with some in the tech industry opposed to her appointment over her long-standing criticism of Big Tech. Since taking over the agency, Khan has increased regulatory scrutiny of tech companies.

In her op-ed, Wilson argues the case that Khan has taken the FTC beyond the rule of law, and she can there no longer stand by and “enable her”:

Much ink has been spilled about Lina Khan’s attempts to remake federal antitrust law as chairman of the Federal Trade Commission. Less has been said about her disregard for the rule of law and due process and the way senior FTC officials enable her. I have failed repeatedly to persuade Ms. Khan and her enablers to do the right thing, and I refuse to give their endeavor any further hint of legitimacy by remaining. Accordingly, I will soon resign as an FTC commissioner.

Wilson accuses Khan and her allies of breaking with established law and “decades of bipartisan precedent” in the pursuit of their agenda:

Since Ms. Khan’s confirmation in 2021, my staff and I have spent countless hours seeking to uncover her abuses of government power. That task has become increasingly difficult as she has consolidated power within the Office of the Chairman, breaking decades of bipartisan precedent and undermining the commission structure that Congress wrote into law. I have sought to provide transparency and facilitate accountability through speeches and statements, but I face constraints on the information I can disclose—many legitimate, but some manufactured by Ms. Khan and the Democratic majority to avoid embarrassment.

Wilson also takes aim at Khan’s past criticism of Big Tech and argues that it disqualifies Khan from serving as an impartial judge in cases involving the companies she has railed against in the past.

Consider the FTC’s challenge to Meta’s acquisition of Within, a virtual-reality gaming company. Before joining the FTC, Ms. Khan argued that Meta should be blocked from making any future acquisitions and wrote a report on the same issues as a congressional staffer. She would now sit as a purportedly impartial judge and decide whether Meta can acquire Within. Spurning due-process considerations and federal ethics obligations, my Democratic colleagues on the commission affirmed Ms. Khan’s decision not to recuse herself.

Commissioner Wilson’s op-ed is a lengthy read, one in which she continues to detail her allegations of abuses of power on Khan’s part.

Most interestingly, Wilson’s position is an increasingly rare one in US politics. Wilson is currently the only Republican FTC Commissioner. As such, she repeatedly calls out her Democratic colleagues at a time when cracking down on antitrust abuses is one of the few things that lawmakers and regultors on both sides of the aisle can agree on.

February 20, 2023
FTC Launches ‘Office of Technology’ to Tackle Big Tech

The Federal Trade Commission is stepping up its efforts to reign in Big Tech, launching a new Office of Technology.

Big Tech has increasingly been in the crosshairs of politicians and regulators across the political spectrum. In the US, the FTC is one of the main agencies tasked with reigning in Big Tech, and it is forming a new office to help achieve that goal and keep up with the rapid changes that happen within the tech industry.

The agency described the goal of the office in its press release:

The Federal Trade Commission today launched a new Office of Technology that will strengthen the FTC’s ability to keep pace with technological challenges in the digital marketplace by supporting the agency’s law enforcement and policy work.

“For more than a century, the FTC has worked to keep pace with new markets and ever-changing technologies by building internal expertise,” said Chair Lina M. Khan. “Our office of technology is a natural next step in ensuring we have the in-house skills needed to fully grasp evolving technologies and market trends as we continue to tackle unlawful business practices and protect Americans.”

FTC CTO Stephanie T. Nguyen will head up the new office, which will have its own dedicated staff.

“I’m honored to lead the FTC’s Office of Technology at this vital time to strengthen the agency’s technical expertise and meet the quickly evolving challenges of the digital economy,” said Nguyen. “I look forward to continuing to work with the agency’s talented staff and building our team of technologists.”

The FTC says the new office will focus on three primary areas, including strengthening and supporting law enforcement investigations and actions; advising and engaging with staff and the Commission on policy and research initiatives; and highlighting market trends and emerging technologies that impact the FTC’s work.

February 17, 2023
FTC May Launch Antitrust Lawsuit Against Amazon

The Federal Trade Commission is reportedly preparing an antitrust lawsuit against Amazon, the latest in regulators’ efforts to reign in Big Tech.

Big Tech has been coming under increased scrutiny in recent years, with critics accusing companies of dominating their respective markets and unfairly using their size and influence to do so. FTC Chairwoman Lina Khan has been a vocal critic of Big Tech, and Amazon in particular, making a possible lawsuit against the company unsurprising.

According to The Wall Street Journal, the FTC is looking at whether Amazon unfairly favors its own products and services, and whether it deals unfairly with third-party sellers. Regulators are also scrutinizing whether Amazon Prime unfairly bundles services to Amazon’s benefit.

The Journal’s sources say it’s unclear whether the FTC will file a suit, and Amazon’s executives have not yet met with individual FTC commissioners to make their case. At this point, the FTC could decide either way on whether to pursue action.

February 3, 2023
President Joe Biden Calls for Bipartisan Action Against Big Tech

President Joe Biden has penned an op-ed in The Wall Street Journal, calling on Democratic and Republican lawmakers to tackle Big Tech.

Lawmakers on both sides of the aisle have grown increasingly worried about Big Tech, the power it holds, and the information it gathers about ordinary citizens. Despite the growing concern, very little progress has been toward passing any meaningful regulation.

Biden outlined the dangers Big Tech poses in his op-ed:

“The risks Big Tech poses for ordinary Americans are clear,” he writes. “Big Tech companies collect huge amounts of data on the things we buy, on the websites we visit, on the places we go and, most troubling of all, on our children. As I said last year in my State of the Union address, millions of young people are struggling with bullying, violence, trauma and mental health. We must hold social-media companies accountable for the experiment they are running on our children for profit.

“To keep Americans on their platforms, Big Tech companies often use users’ personal data to direct them toward extreme and polarizing content that is likely to keep them logged on and clicking. All too often, tragic violence has been linked to toxic online echo chambers.”

While acknowledging there are many things the two parties disagree on, Biden makes the case that regulating Big Tech shouldn’t be one of them:

“We need bipartisan action from Congress to hold Big Tech accountable,” he continues. “We’ve heard a lot of talk about creating committees. It’s time to walk the walk and get something done. There will be many policy issues we disagree on in the new Congress, but bipartisan proposals to protect our privacy and our children; to prevent discrimination, sexual exploitation, and cyberstalking; and to tackle anticompetitive conduct shouldn’t separate us. Let’s unite behind our shared values and show the nation we can work together to get the job done.”

Big Tech may prove to be the one issue both parties can agree on. If so, the coming months may see some major changes for the industry.

January 13, 2023
Senator Mark Warner Wants to ‘Restart Antitrust’ Legislation

After a contentious start for the new Congress, Senator Mark Warner is ready to “restart antitrust” legislation.

The US has been increasingly trying to reign in Big Tech’s influence and power, but efforts have largely stalled. Senator Warner is determined to get the process going again.

“Let’s restart antitrust,” Warner (D., Va.) told MarketWatch on Monday. “Lessons were learned [in 2022] and we can break through with kids legislation. Can’t we at least agree on kids safety?”

In particular, Senator Warner wants to take aim at Section 230, the legislation that protects online platforms from legal liability resulting from the speech or actions of their users.

“Section 230 has been this vast, get-out-of-jail free card,” Warner said,

Warner also indicated improved interoperability between online platforms could be a main goal, as well preventing Big Tech companies from preferring their own products and services over those of competitors.

The EU has already unveiled its Digital Markets Act (DMA) that achieves much of what Warner hopes to. Only time will tell if the US can pass similar legislation.

January 9, 2023
Big Tech’s $95 Million Lobbying May Be Close to Scuttling Antitrust Bill

Congress is trying to pass an antitrust bill that would significantly alter the tech landscape, but Big Tech has spent $95 million to scuttle it.

The American Innovation and Choice Online Act takes aim at Big Tech companies in an effort to reign in their influence and create a more competitive environment. One of the key provisions of the bill would prevent companies from favoring their own products and services.

Despite bipartisan support for the bill among lawmakers, Bloomberg is reporting that Amazon, Apple, Google, and Meta have spent nearly $95 million lobbying against the legislation in a move that may be paying off. Bloomberg’s sources said the bill appeared to be losing momentum and was facing a do-or-die moment.

“If supporters of this bill had enough votes, it wouldn’t be a bill, it would be a law,” Matt Schruers, president of the Computer & Communications Industry Association, told the outlet.

The bill has already faced stiff opposition, not only from Big Tech but also from unexpected sources. The Independent Women’s Voice came out as an early critic of the legislation.

Read more: Amazon Cries Fouls Over US Antitrust Bill

“The days of innovative services making it easier to live, work, and do business, especially during a pandemic, could be numbered if the American Innovation and Choice Online Act passes the full Senate,” said Patrice Onwuka, a senior policy analyst at Independent Women’s Voice, in a statement to WPN in January 2022. “Today’s affirmative committee vote is very troubling because this bill is not about protecting competition in America, but expanding regulatory control over a handful of large tech corporations, even if to the detriment of consumers.”

Onwuka went on to describe the bill as “ill-conceived” and one that would hurt women-owned businesses.

“Senators Klobuchar and Grassley acknowledged the issues with their ill-conceived legislation by introducing a manager’s amendment that does nothing to address substantive concerns from across the political spectrum,” Onwuka continued. “As written, convenient, cost-saving, and secure services from Google Maps in search results to Amazon Prime would effectively be banned. The impacts for women are easy to imagine. Women business owners who depend on a variety of services to find customers, target their goods and services to the right audience, and carry out their business functions would be left in the cold.”

With limited time before the November midterm elections, some worry there are other, more pressing matters for the Senate to consider. It remains to be seen if the antitrust bill will squeeze through, but there are at least 95 million reasons why it may not.

September 7, 2022
Rein In Big Tech? Maybe Not, Thanks to the Supreme Court

Efforts to rein in Big Tech in the US may face new hurdles, thanks to a ruling by the Supreme Court.

The Supreme Court’s decision to limit the Environmental Protection Agency’s authority to regulate carbon emissions could have significant consequences for regulators’ attempts to reign in Big Tech. By limiting the EPA’s authority, some experts believe it could significantly reduce the authority of other agencies to regulate industries.

“Every agency is going to face new hurdles in the wake of this confusing decision,” said Alexandra Givens, the president and CEO of the Center for Democracy and Technology, according to AP News. “But hopefully the agencies will continue doing their jobs and push forward.”

Despite the new challenges it may pose, Givens doesn’t believe the decision completely nullifies agencies’ authority. She noted that Chief Justice John Roberts repeatedly highlighted the “extraordinary” nature of the EPA decision, seemingly leaving other agencies unchallenged.

Other experts believe a line in the sand has been drawn, however.

SCOTUS “basically said when it comes to major policy changes that can transform entire sectors of the economy, Congress has to make those choices, not agencies,” said Neil Chilson, a fellow at libertarian-leaning Stand Together.

Only time will tell if other agencies will face the same challenges as the EPA. If they do, it could provide a major reprieve to Big Tech.

July 3, 2022
US May Follow EU in Crackdown on Gatekeeper Tech Companies

The US may soon follow the EU in cracking down on gatekeeper companies, as governments become increasingly wary of Big Tech.

The EU introduced the Digital Markets Act (DMA) in late March, its most comprehensive attempt to rein in Big Tech’s power. Gatekeeper companies — companies that run a “platform,” have a market cap of at least $82 billion, and at least 45,000 active users — are especially addressed by the DMA. For example, the DMA would require messaging platforms to open up and work with smaller competitors, and could even force companies to break up if they fail to comply with the legislation’s terms.

Despite many concerns about the DMA’s implications, especially in the realm of security, the US may be preparing to follow the EU’s example, according to Bloomberg, especially when it comes to mergers and acquisitions.

“The plain text of our merger laws in the United States demand that we have aggressive enforcement against acquisitions by firms that already possess a dominant position,” said Jonathan Kanter, head of the DOJ’s antitrust division.

It remains to be seen if the US will follow through, especially given the fact it tends to be more lenient on corporations than the EU. It is also unclear how far the US may emulate the DMA, and whether it would also press for interoperability clauses.

March 31, 2022
Can’t Remember All Big Tech’s Controversies? There’s a Wiki For That

A new nonprofit watchdog organization, The Tech Oversight Project, has published a wiki list all Big Tech’s controversies.

Big Tech is coming under increasing scrutiny on multiple fronts, with privacy and antitrust concerns being two of the biggest. Companies throughout Big Tech are facing lawsuits, both from individuals and governments.

The Tech Oversight Project was formed with the goal of ” holding Big Tech accountable by urging lawmakers to support comprehensive antitrust legislation.” To that end, the group has published BigTechWiki, listing all the various scandals and controversies Big Tech has been involved in, and providing detailed information.

Perusing the wiki may be an eye-opening experience for many individuals.

March 29, 2022
EU Prepares to Crack Down on Big Tech, Unveils Sweeping Measures

The European Union has unveiled sweeping measures to crack down on Big Tech and increase competition across the industry.

The EU has unveiled the Digital Markets Act (DMA), aimed specifically at “gatekeeper” companies, according to The Verge. Gatekeepers are companies with a market cap of at least $82 billion, at least 45,000 active users, and that run a “platform.” Such criteria would cover Amazon, Apple, Google, Meta, and Microsoft, but could also cover smaller companies and services as well.

Messaging, in particular, is a likely focus of the DMA, with the EU looking to force services like Facebook Messenger, iMessage, and WhatsApp to “open up and interoperate with smaller messaging platforms, if they so request.”

The DMA would include a number of other provisions, including stopping gatekeepers from preferring their own apps and services, as well as giving users the ability to uninstall default apps that come on their devices, and even choose which apps they want to use during install and setup.

Companies that sell or do business on a given platform would be entitled to access performance metrics from that platform. Similarly, companies that advertise on a platform would be given a way to independently confirm the performance of their advertising efforts.

The penalties for failure to comply would be severe, including up to 10% of a company’s annual worldwide revenue and periodic penalties up to 5% of its daily earnings. Most notably, the EU would also have the authority to enforce “behavioral and structural remedies.” This could including mandating that a company change how it operates its platform or service, and could even include forcing a company to spin off portions of its business, if the anti-competitive concerns cannot otherwise be addressed.

This is why, in the Digital Markets Act, there is a full toolbox where the sanctions become more and more severe,” the EU’s Commissioner for Competition, Margrethe Vestager told The Verge. “The fines will increase if you do not implement changes. Eventually, in the toolbox, there’s also the tool that you can actually break up a company if no change is happening, or if you are a repeat offender.”

The DMA represents the single largest effort by the EU to reign in the power and influence of Big Tech, combining a number of different efforts into one comprehensive piece of legislation. The legislation has not passed yet but, given the momentum that’s been building in the EU, it’s almost certainly going to pass sooner rather than later.

March 28, 2022
Lawmakers Introduce Bills to Ban Mergers Over $5 Billion

US Senator Elizabeth Warren and Representative Mondaire Jones have introduced bills to ban corporate mergers over $5 billion.

Mergers have become an increasingly major concern for lawmakers, in both the US and the EU. Big Tech, in particular, has come under scrutiny, with many mergers being viewed as anticompetitive. Various measures have been proposed, but new bills — Prohibiting Anticompetitive Mergers Act — by Warren and Jones may be the most aggressive yet, proposing a total ban on mergers over $5 billion.

The bills would give the Federal Trade Commission (FTC) and the Department of Justice (DOJ) the power to block mergers without needing a court order. The two agencies would also be given the power to undo mergers they deem harmful.

“For the last five decades, big companies have had almost free reign over our economy, squashing competitors, growing bigger and bigger, and abusing their market power to price gouge consumers and crush workers and small businesses. This unconstitutional behavior has to stop. My new bill with Rep. Jones would restore our country’s anti-monopoly tradition by banning the biggest, most anticompetitive mergers and giving the DOJ and the FTC stronger tools to enforce our antitrust laws and restore real competition in our markets. Congress needs to take bold action to bring down prices for families and promote a fairer economy for all Americans, and our bill would do just that,” said Senator Warren.

“In 2021, our antitrust agencies received more merger filings than in any other year during the last decade,” said Congressman Mondaire Jones. “From major tech mergers between companies like Facebook and Instagram to agriculture mergers between companies like Wayne and Sanderson Farms, the recent rise in corporate consolidation has increased unemployment, suppressed wages, and allowed companies to hike up prices even further during this period of inflation. It’s why we need the Prohibiting Anticompetitive Mergers Act, which I’m proud to introduce with Senator Elizabeth Warren. Our bill would empower workers, raise wages, reduce prices, combat inequality, and enable small businesses to thrive. By banning the biggest, most anticompetitive mergers, overhauling the merger-review process to include consideration of labor-market consequences, and strengthening agencies’ tools to break up harmful mergers, our bill will tackle corporate consolidation head on and help build a fairer, more vibrant economy that works for everyone.”

In just the last few weeks, Microsoft announced plans to acquire Activision Blizzard for $68.7 billion, and Google is purchasing Mandiant for $5.4 billion. Similarly, Amazon is purchasing MGM for $8.45 billion. If the bills should pass, these deals could be on the chopping block, or undone after the fact.

March 16, 2022
EU and US Set to Join Forces Tackling Big Tech

The EU and US are prepared to join forces in an effort to tackle Big Tech’s influence.

According to a memo seen by Reuters, the U.S.-EU Trade & Technology Council will announce plans to tackle Big Tech in a meeting on September 29 in Pittsburgh. Big Tech’s power and influence has been a growing concern on both sides of the Atlantic, but any regulation must be universal to have the biggest impact.

The U.S.-EU Trade & Technology Council plans on announcing a number of initiatives, including on climate change, supply chains and trade. The fact that Big Tech is lumped in with those topics is indicative of how important the issue is for many regulators.

September 23, 2021
Amazon Warning Sellers About Congress’ Antitrust Efforts

Amazon is contacting third-party sellers to warn them of how impending action by Congress could impact them.

Congress seems determined to tackle issues with Big Tech, including what it perceives as antitrust violations and monopolistic behavior. Amazon is one of the companies Congress has its sights set on, and this is already a concern for the e-commerce giant.

According to CNBC, the company has begun contacting some of its third-party sellers, one of its biggest growth markets, to inform them of how they may be impacted.

“We’re reaching out to a small group of our sellers to make them aware of a package of legislative proposals, currently in Congress, that is aimed at regulating Amazon and other large technology companies,” states the email, send by CNBC. “It is early in the process and the bills are subject to change, but we are concerned that they could potentially have significant negative effects on small and medium-sized businesses like yours that sell in our store.”

As Amazon points out, there is much that could change before the antitrust bills make it into law. Nonetheless, the threat of the bills is already causing major concern.

August 18, 2021
Biden Executive Order to Target Increased Competition

President Joe Biden is signing an executive order aimed at increasing competition in the US market.

Consolidation has been a major force in the American market for decades. Mom and pop shops have steadily been forced out as entire industries have become dominated by a handful of major players. According to the Biden administration, this consolidation and lack of competition costs American families some $5,000 per year.

That lack of competition drives up prices for consumers. As fewer large players have controlled more of the market, mark-ups (charges over cost) have tripled. Families are paying higher prices for necessities—things like prescription drugs, hearing aids, and internet service.

To address the problem, President Biden is preparing to sign an executive order that would involve more than a dozen federal agencies and 72 initiatives aimed at tackling the problem across multiple industries.

The action is expected to benefit the labor market, healthcare, transportation, shipping, agriculture, internet access, banking and finance, as well as increase competition in the tech industry by adding additional scrutiny of mergers and acquisitions.

July 9, 2021
US Officials Warn EU Against Targeting American Companies

US officials are warning the EU not to single out American companies with “protectionist” tech policies.

The EU has a much higher standard for consumer protections and privacy, policies that have put it on a collision course with numerous US companies. In addition, some specific EU countries, like Ireland and the Netherlands, have worked out favorable tax deals with US companies. The EU has repeatedly tried to end those deals, although courts have so far ruled in favor of keeping them in place.

US officials are now warning the EU not to go too far in targeting US companies, according to the Financial Times, via Ars Technica. Of particular concern were comments by Andreas Schwab, a member of the European Parliament.

“We are particularly concerned about recent comments by the European Parliament rapporteur for the Digital Markets Act, Andreas Schwab, who suggested the DMA should unquestionably target only the five biggest US firms,” said an email, sent by National Security Council staff to the EU delegation, seen by the Financial Times.

The email continued: “Comments and approaches such as this make regulatory co-operation between the US and Europe extremely difficult and send a message that the [European] Commission is not interested in engaging with the United States in good faith to address these common challenges in a way that serves our shared interests.

“Protectionist measures could disadvantage European citizens and hold back innovation in member-state economies. Such policies will also hinder our ability to work together to harmonize our regulatory systems,” the email said.

US and EU officials have stressed the importance of working together to improve regulation of Big Tech. Not surprisingly, an NSC official told the Financial Times the segments the outlet saw did not reflect the full context. Either way, it’s clear fair scrutiny of American, as well as non-American, companies will likely be a critical negotiating point in any future agreements.

June 15, 2021
Senator Josh Hawley’s Antitrust Bill Would Hurt Startups More Than Big Tech

Senator Josh Hawley introduced a bill Monday aimed at addressing antitrust concerns, but it may do more harm than good.

Antitrust has become a major concern for politicians on both sides of the aisle. Google and Facebook are both facing antitrust lawsuits, and officials are looking at various ways of addressing the overarching concerns about the tech industry in general.

Senator Hawley’s bill would ban companies with a market cap over $100 billion from buying any startups. As Business Insider columnist Jason Aten writes, however, such a move would harm startups far more than it would hurt Big Tech.

Acquisition is one of the main goals of many startup founders, providing an exit strategy and payday for successful founders and investors. For better or worse, large companies are an important part of that strategy. If they are blocked from acquiring companies, it could completely disrupt the startup scene.

Another major downside is the disparity between large and small companies that may be over $100 billion. Aten uses the example of Shopify, a company large enough to fall under Hawley’s bill. Shopify would be prohibited from buying an up-and-coming app, service or platform that could help it better compete with much larger rivals, such as Amazon or Walmart. Such an outcome would only hurt Shopify, while protecting the larger company even more.

Aten’s take on the situation well-illustrates the challenges of addressing antitrust issues without creating even more problems.

April 16, 2021
Facebook Announces Platform to Support Writers and Journalists

Facebook has announced a platform to help writers and journalists monetize their content at a time when news and media are under siege.

This last pandemic-filled year has been particularly difficult for news publishers and the media industry in general. In the midst of those challenges, Big Tech has been under increased scrutiny for how it uses and profits from news and media. Australia passed legislation to force Big Tech companies to pay for the news they use and the US is considering a similar bill.

Facebook has now taken the step of developing a platform designed to make it easier for writers and journalists to self-publish content and monetize it.

As writers, experts and journalists publish more of their work independently, we’re working to better support those efforts and make it easier for those content creators to build businesses online.

In the coming months in the U.S., we’ll introduce a new platform to empower independent writers, helping them reach new audiences and grow their businesses. We will start by partnering with a small subset of independent writers. The platform will include a variety of support focused on content creation and audience growth.

The social media giant hopes its new platform will be especially beneficial to independent journalists.

A large part of this initiative is aimed at supporting independent local journalists who are often the lone voice covering a given community. We’ll work to include them at launch, and build tools and services specific to their needs. Since 2018, we’ve invested $600 million to support journalism and we’re investing $1 billion in news over the next three years. We will continue to support publishers through the Facebook Journalism Project, our existing products and initiatives such as Facebook News, Accelerators, grants, subscriptions tools, Instant Articles and more.

Facebook’s new platform could be a critical game-changer for independent writers, journalists and experts, and may help the company answer its critics.

March 27, 2021
Tim Wu, the Man Who Coined ‘Net Neutrality,’ Joins Biden Administration

Tim Wu is joining the Biden administration, likely signaling increased scrutiny for Big Tech.

Tim Wu, a Columbia law professor, famously coined the phrase “net neutrality” and has been a vocal critic of the tech industry. Wu has also been a proponent of more aggressive antitrust action against Amazon, Facebook and Google.

He has been hired by the Biden administration specifically to work on Technology and Competition Policy.

https://twitter.com/superwuster/status/1367814526159253506?s=20

Big Tech has been in the spotlight more and more over antitrust concerns. While ominous, Wu’s appointment isn’t necessarily a bad thing for tech companies. Steve Ballmer, former Microsoft CEO, said Big Tech should take a more proactive approach, embrace additional regulation and move forward with clear guidelines it can operate within.

“If I’m in these guys’ shoes, I say, come on, let’s get down there and let’s regulate me and let’s get it over with so I know what I can do,” Ballmer said in a “Squawk Box” interview.

“I’ll bet money that they will not be broken up,” Ballmer continued in his comments to CNBC.

“I also don’t think the case of Apple is the same as Google is the same as Amazon,” Ballmer added. “In a sense putting them all together makes good theater but it doesn’t necessarily mean good policy.”

March 5, 2021