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Tech Market Has Many Opportunities for Smaller Companies, Says New America

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Photo of New America CEO Anne-Marie Slaughter by New America used with permission

July 1, 2020 — The time is right for smaller companies to seize market share amid the coronavirus, said New America representatives in a meeting of Slate’s Future Tense program on Tuesday.

Anne-Marie Slaughter, CEO of New America, said that the success of Zoom during a time when the majority of Americans are at least partially quarantined showed that smaller tech companies still have a fighting chance against larger companies like Google and Facebook.

“You can compete even if you are smaller,” she said. “You really just have to seize that market niche.”

LinkedIn Co-Founder and New America Board Member Reid Hoffman agreed and said that the number of large tech companies is actually increasing rather than consolidating.

“We have called it five plus large tech firms,” he said. “I think that’s five plus large tech firms going to ten, not going to two or three.”

Zoom has become indispensable for telework and telelearning, as well as recreational calling. While the company was little-known in America before the coronavirus pandemic, it has managed to surpass pre-existing videoconferencing apps and websites.

In efforts to compete with Zoom, Google has made its business-minded videoconference app Meet free for all users. Facebook has also expanded functionality for video calling within its apps, including Messenger Rooms, which allow calls with up to 50 people.

Hoffman was positive about the effect of newfound competition on the videoconferencing market.

“When you have a number of [companies] and they’re all competing really ferociously,” he said, “that competition created lots of space, not just in a competition between the large firms themselves, but for startups.”

Critics have expressed concern over Zoom’s ties to China as well as its reluctance to provide end-to-end encryption for all users until June, after receiving significant pressure from civil rights advocates.

Big Tech

Proposed Antitrust Legislation Not the Way to Regulate Big Tech, Panelists Say

Legislation currently before Congress will hurt American tech’s global competitiveness, event hears.

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Screenshot from the Foreign Policy event on Thursday

WASHINGTON, June 29, 2022 – Critics at a Foreign Policy magazine event blasted the efforts of the Federal Trade Commission and lawmakers to crack down on Big Tech, saying legislative efforts could impact America’s global competitiveness in the tech industry.

On Thursday, panelists were divided on how Washington should approach antitrust legislation proposals, referencing six antitrust bills introduced to Congress in June 2021 that target big tech companies. Those bills – including the American Choice and Innovation Online Act, H.R. 3816, Platform Competition and Opportunity Act, H.R. 3826, Ending Platform Monopolies Act, H.R. 3825, Augmenting Compatibility and Competition by Enabling Service Switching (ACCESS) Act, H.R. 3849, Merger Filing Fee Modernization Act, H.R. 3843, and State Antitrust Enforcement Venue Act, H.R. 3460 – aim to rein in the power of Big Tech through anticompetitive measures, new merger and acquisition review, and providing government enforcers more power to break-up or separate big businesses.

Sean Heather, senior vice president of international regulatory affairs and antitrust from the U.S. Chamber of Congress, criticized current antitrust laws saying it will hurt U.S. competition in the global world. He said “the answer is not to do it through antitrust” or implementing “sweeping judgement” that puts all businesses under one rubric. Instead, he suggested “targeted legislation” that would address individual issues of each business.

Clete Willems, from the Atlantic Council’s geoeconomics center, said that many of the proposed antitrust laws are ineffective. He stated a major flaw of these bills is that they penalize big technology companies because of their size, instead of for abuses of market power in common business practices.

Willems said that the bills simply ban “big tech companies because they are big but are not tying it to abuse of market power. That to me illustrates the fundamental problem with this agenda.”

Some panelists echoed flaws presented by Robert Atkinson, president of the Information Technology and Innovation Foundation in April, saying that antitrust regulation could hamper U.S. competition in the tech world or negatively hurt customers, as FTC Commissioner Noah Phillips said in May.

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Antitrust

‘Time is Now’ for Separate Big Tech Regulatory Agency, Public Interest Group Says

‘We need to recognize that absolutely the time is now. It is neither too soon nor too late.’

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Photo of Harold Feld, senior vice president at Public Knowledge

WASHINGTON, June 21, 2022 – Public Knowledge, non-profit public interest group, further advocated Thursday support for the Digital Platform Commission Act introduced in the Senate in May that would create a new federal agency designed to regulate digital platforms on an ongoing basis.

“We need to recognize that absolutely the time is now. It is neither too soon nor too late,” said Harold Feld, senior vice president at Public Knowledge.

The DPCA, introduced by Senator Michael Bennet, D-CO., and Representative Peter Welch, D-VT., would, if adopted, create a new federal agency designed to “provide comprehensive, sector-specific regulation of digital platforms to protect consumers, promote competition, and defend the public interest.”

The independent body would conduct hearings, research and investigations all while promoting competition and establishing rules with appropriate penalties.

Public Knowledge primarily focuses on competition in the digital marketplace. It champions for open internet and has openly advocated for antitrust legislation that would limit Big Tech action in favor of fair competition in the digital marketspace.

Feld published a book in 2019 titled, “The Case for the Digital Platform Act: Breakups, Starfish Problems and Tech Regulation.” In it, Feld explains the need for a separate government agency to regulate digital platforms.

Digital regulation is new but has rapidly become critical to the economy, continued Feld. As such, it is necessary for the government to create a completely new agency in order to provide the proper oversight.

In the past, Congress empowered independent bodies with effective tools and expert teams when it lacked expertise to oversee complex sectors of the economy but there is no such body for digital platforms, said Feld.

“The reality is that [Congress] can’t keep up,” said Welch. This comes at a time when antitrust action continues to pile up in Congress, sparking debate across all sides of the issue.

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Big Tech

Young American Views on Social Media Regulation Shaped by Use, Panelists Discuss

A March Gallup and Knight study found young Americans are less concerned about hurtful online discourse.

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Photo of Gallup Event

WASHINGTON, June 13, 2022 – Panelists at a Gallup event on Wednesday said young American’s use of social media primarily as an entertainment source shapes their views on tech regulation.

The view comes after a March study by Gallup and Knight said that young Americans aged 18 to 34 are less likely to stay within partisan boundaries about tech regulation. The study of 10,000 adults sought to compile American views on internet regulation and found that young adults are less likely to be very concerned about hurtful discourse online than adults 55 and older.

The report outlined a dichotomy between older and younger generations, with the report indicating that younger Americans are more motivated to participate in “traditional” civic behaviors like attending protests or donating to social causes as a result of social media than their older counterparts.

The older generation, on the other hand, generally use social media as a news source, the report claimed.

The study comes amid debate about what types of antitrust action needs to be taken by Washington on big tech companies with respect to content management. Some Americans are concerned that social media platforms allow for the spread of misinformation and hate speech. The study was conducted to better understand how U.S. citizens view regulation of online content and the responsibility for the internet’s governance.

The study developed six broad sample groups. One of these groups was “the unfazed digital natives,” characterizing 19 percent of the population. This group was the youngest of segments and favored, regardless of party affiliation, “individual responsibility and a hands-off approach by the government. Nevertheless, they support some degree of content moderation by social media companies.”

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