Tech Giants: Feudalism, Free Speech and Fines

On the 20th Oct 2020 the DoJ filed an antitrust suit against Google for anti competitive behaviour. It was portrayed as a nuclear bomb for competition law but is really one that will probably fail to detonate. The big accusation by those in the competition field is that we have now entered into a time of near total monopoly.

Let's rewind a bit. Well a lot actually. In Medieval Europe there operated a feudal system. Wealthy landowners provided land to tenants in exchange for their loyalty and services. If you didn't stay loyal to your Lord you'd lose your income and livelihood. Absolute power wrested in the hands of a few. Zero competition.

Competition is considered great for innovation and great for consumers. Prices are kept in check, quality is maintained and the consumer benefits. The industry finds equilibrium. Okay, perhaps this view is somewhat quixotic but you get the idea.

The issue we now have is that big tech firms have all the users, all the engagement and all the data. Newcomers to the social media market for instance face an enormous battle. So much so in fact that the reality is there are no rivals.

Solutions have been offered to restrict the monopolies created but as valiant as they are they in their infancy and actually lack some grasp on reality. Take for instance the "power to the people" idea. Seductive? Sure! But individuals have been stripped of all their bargaining power in reality. Facebook didn't see a huge decline in users following the Cambridge Analytica scandal. Indicating that this is perhaps wishful thinking.

There have been token moves by the platforms to avoid regulation. They have been under pressure to remove content especially in the lead up to the USA election. All the social media platforms declared their wish to stay neutral but due to increasing pressure they have ended up being more akin to publishers. Facebook in fact announced recently it removes around 17million fake accounts per day. Do we want to hand that power to unelected monopolies? Is that really the best solution?

This is the problem with monopolies. There are not alternative platforms. There are no choices for consumers to make. Which means that the only people in the position to balance freedom of expression with safety and security are the big platforms.

Some have suggested breaking up these big tech firms, the counter argument this will dangerous hamper innovation. Some say an international watchdog that is neutral should be responsible for removing content on these platforms and not the companies themselves but again this sounds more like an idealistic dream right now. Some countries have been more proactive. Germany has passed a law requiring platforms to take down illegal content within 24hours of notification. This has had some success. Facebook chose to open a moderation centre just in Germany as a response.

The problem lies in our lack of choice. The lack of competition means that too much power sits with the few. Just like feudalism gave way to greater property rights in Europe we hope the same is true for data.