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Big Tech Not Anticompetitive, But May Require Careful Regulation

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Screenshot from the webinar

March 8, 2021 – Lawmakers should not rush to paint big technology companies as monopolists and should carefully analyze what is worth regulating, according to commentators speaking at a Thursday Law and Economics Center webinar.

The fallacious notion that big tech companies don’t have much competition stems from the perception about how society interacts online, and which may by dictated by a small number of these corporations.

But Adam White, executive director at the C. Boyden Gray Center for the Study of the Administrative State at George Mason University’s Antonin Scalia Law School, said different tech companies are focusing on completely different parts of the human and social experience, thus making it harder to categorize these companies as anticompetitive monopolists.

The debate comes as lawmakers propose reforms to the Section 230 internet liability provision, which currently insulates social media platforms from lawsuits stemming from what their users post.

Genevieve Lakier, assistant professor of law at the University of Chicago Law School, said big tech shouldn’t have to raise competition alarms to be regulated.

Rather, lawmakers should look to how these companies influence behavior, with targeted ads and the push to show people what the technology companies think people would like.

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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