EU to unveil landmark law curbing power of tech giants
dw.com
dw.com
1. Alphabet/Google
2. Apple
3. Facebook
4. Match Group
Match group is lucky they're not getting much attention, but they own all major dating apps. They need a bit of smacking.
Reasons:
For Google, the biggest problem is their bundling of Chrome, YouTube, Gmail if you want to have Google certified android phone that has the Google play store. Google should be prevented from having their own WWW crawler too. The crawler should be made into it's own company and data should be purchased by Google and any other company that want to purchase it at the same costs.
For Apple, it's their app store. The app store needs to be eliminated. Apple has a problem with not allowing competing browser engines on iOS and misleading people by saying it's for privacy reason. Eliminating the control of the App store from Apple is going to fix the problem.
For Facebook, Instagram and Whatsapp should be spun off to their own entities.
For Match group, break off tinder into a separate company. And prevent any future dating app accusations by Match group or Tinder. NO MERGERS.
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From the Chinese side:
I'd like to see Alibaba group and Tencent being investigated.
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Edit: replying to calls below for travel industry.
The travel industry is already competitive enough, and the situation in these areas should be reviewed after a year or two.
For now, these are the critical problems for tech. Their control is taking the breath away from smaller companies and reducing innovation.
> Match group is lucky they're not getting much attention, but they own all major dating apps. They need a bit of smacking.
I had never heard that name and just googled them. HOOOOLLLYYY COW!!!!!!! That's what I call monopoly.
Doesn't seem terribly monopolized to me, especially if you factor in that one person often uses multiple of those apps.
That's exactly why I mentioned people using multiple apps, which lessens the effect quite a bit. Users on dating apps are also rather fickle, and will jump to the next best app once that becomes available, so even with a big market share, there isn't much lock-in and there isn't much of an outsized benefit to the position as a market leader. E.g. in the European market Bumble appeared a few years after Tinder and within 1-2 years basically everybody that I know that used Tinder before at least tried out Bumble and many continue to use both or switched outright. Of course that's very anecdotal, but current statistics for number of US users for both apps paint a similar picture[0].
> I think it's safe to assume they own 80-90% of the market share. That is pretty close to monopoly if you ask me.
In 2016, they apparently owned 25% of market share[1], which is pretty far away from a monopoly if you ask me.
It seems a bit weird to me to group them together with Alphabet/Facebook/Apple. The others span far more markets, and have much much stronger lock-in effect which they can unfairly leverage to push other products. Compared to that, Match Group is laughable.
[0]: https://www.statista.com/statistics/826778/most-popular-dati...
[1]: https://www.fool.com/investing/2020/06/07/why-match-group-st...
...so duopoly??
I think it's much more than that.
Google makes apps and services. Google makes the platforms apps run on (Android, ChromeOS, Chrome [web + electron], Stadia). Google makes the services used to monetize apps (AdSense). Google makes the services used to distribute apps (Google Play Store, Stadia). Google makes the services used to find apps and services (Google Search, Google Maps, Google Play Store). And that's not to mention the deployment platforms, communication platforms, payment platforms, analytics platforms, development tools, content hosting services, etc.
They have so much control that you can't hope to compete with any of their established apps or services - no matter how much better your own product might be. All you can to is try to make something new and get big enough that Google can't take you on directly.
Android was motivated to compete with Apple. The Play Store and Chrome Web Store required platform ownership for integration and optimization. Intertwined services demand mutual optimization. Many other Google products would likely struggle as startups, requiring massive scale to become profitable, if even possible. Most only exist because ads pay for them and they may contribute to improving ads.
Who knows? How many alternatives died or resolved themselves to relative obscurity because Google managed to get a strangle hold on the market before their competitors could establish themselves?
Maybe Windows Phone would still exist. Maybe we'd be much further along with a truly open mobile Linux platform.
Maybe Firefox wouldn't be slowly fading into obscurity. Maybe Opera would be one of the top browsers. Maybe Edge would still be developing its own browser tech instead of just reskinning Chromium.
Maybe OSM would be the most popular map provider. Maybe Vimeo would be the go-to platform for video hosting. Maybe people would prefer store their files on Box. Maybe ads would have never have become such a popular monetization strategy and we might have seen some new and innovative strategies in its place.
Who knows?
That's not to say I agree that all these predicates are met in Google's case, but if you really do find yourself in a situation where a company can't be broken up because the constituent products are necessary to society but can't function without one another, then that company probably can't be effectively regulated by any government.
Suppose Chrome couldn't be a part of Google. They would have just contributed to Firefox, wouldn't you say?
Or if they were worried about Apple, donated startup capital to a non-profit Android Foundation to get it off the ground, where it could subsequently operate under a business model similar to Mozilla.
The difference is that the independent entities wouldn't have the same conflicts of interest as they do as part of the mothership. Firefox can care more about privacy than Chrome, so if it was the dominant browser, all the better. An Android Foundation operated by people in the spirit of Debian would probably care more about continuing to support older phone hardware, and care less about monopolizing app distribution to their operating system.
Hopefully much fewer.
>How much innovation is restricted by splitting entities.
None. It's actually increased. What you listed is products, not innovations.
So was MeeGo, maybe we would be using that now if Google couldn't just throw its weight around.
> The Play Store and Chrome Web Store
Ah vendor locked in store fronts, nearly as innovative as the company store in mining towns. The promise by Google to completely pull the rug out under any Android manufacturer trying to get away from it only ads to its clear innovative superiority .
> Many other Google products would likely struggle as startups, requiring massive scale to become profitable, if even possible.
Yes, the last decade of venture capitalist funded loss companies like Uber has shown that no one could reach that size without Google to guide them.
Over the past 10 years, how many companies chose to build native apps for iOS instead of web apps running everywhere? How many people bought iOS devices instead of competing products because of that rich app ecosystem (working only on iOS devices)? How much money did they make through the App Store fee that app developers could have saved if Web Apps had been a viable option? How much money was poured in the native industry instead of the Web?
Apple has been preventing the growth of the Web as an app platform for years, it's time for a change, and it's time they pay for it.
The problem is that they prevent other browsers to add these features, because they prevent them from using their browser engines. That way, they prevent these browsers to really compete with theirs (Safari). Because if we could run the real Chrome on iOS, with all the APIs it supports, it's obvious everyone would ditch Safari straight away.
And more importantly, that way they prevent Web apps from competing with native apps. Because obviously, who would use a Web app which can't even send push notifications instead of a native app with all the native APIs it has access to?
So the problem is not Apple not caring enough about the Web. The problem is Apple having anti-competitive behaviour regarding Web browsers and application platforms on iOS.
You'd be running features that both Mozilla and Safari consider harmful and will not implement.
Most frontend devs that I know making PWAs complain endlessly about the number of exceptions and workarounds for Safari, and indeed it does slow down development and ends up being a justification for contemplating dedicated mobile apps.
Apple doesn't have to do anything, they just have to stop blocking others from doing anything.
Anything else, like two iOS versions, is simply a provocation on the level of "we cannot unbundle IE".
This is where this line of reasoning goes wrong.
People will be persuaded to go out of the App Store ecosystem regardless of whether it is good for them or not.
Tens of billions of dollars and the most valuable advertising real estate on Facebook, Amazon, and the front page of Google, not to mention Epic and the other TenCent owned games companies will all be used to convince users to install alternative App Store.
Facebook and Amazon will presumably bundle stores directly into their apps. Why wouldn’t many other companies do this. Presumably TikTok would.
Google seems iffier, since Chrome at least would never be viable as a standalone product (as the fates of Mozilla and Opera have taught us).
Totally agree that Match group is an interesting under-the-radar one. It's shocking how much of the market they control with all their "competing" apps.
Firefox has been viable as a standalone product for over a decade because Google pays for being the default search engine. This is roughly viable with Chrome being around, it would be even more viable if Chrome was not around.
However, Mozilla doesn't have a massive userbase like that, which leads me to suspect that Google only pays Mozilla to stave off pressure form regulators who would otherwise accuse them of having a monopoly on browsers.
You can't compete with Chrome when your primary merit is simply not being Google. Forcing Google to spin-off Chrome should have been done earlier though, before Microsoft had a stake on the engine. Now additional steps need to be taken to ensure that spinning off Chrome will not actually kill competition; with an independent Chrome, we can count on Google cutting down on Mozilla's funding since Google wouldn't be any longer in danger of being ruled as a browser monopoly.
I wonder if this means that we should all start starting dating app companies, given that apparently it's a guaranteed sale if you can attract enough users. We could start the "match group group," stamping out standardized dating apps and putting proven amounts of brand-building effort into each one, and selling them to Match Group at a repeatable price.
“ Google should be prevented from having their own WWW crawler too. The crawler should be made into it's own company and data should be purchased by Google and any other company that want to purchase it at the same costs.”
I know someone working on DOJ’s case vs G search, yet I haven’t heard any decent proposals to solve the problem. This is one. Simple and could spark a lot of innovation. (Probably has drawbacks that I haven’t considered yet.)
The harder problem is what you do with the result of the crawl once you have it. You need to index it. This is one of Google's deepest moats. Being able to serve any of hundreds of billions of documents in milliseconds requires an enormous amount of infrastructure and hundreds of careers worth of difficult software engineering.
I don't see a good way to split indexing out as a separate company from the rest of the search engine. It's tightly integrated with ranking. Generally a new ranking technique requires some new information to be associated with each document in the index, e.g. some precomputed scores that describe the document's quality or fitness for different kinds of queries. At query time, you're often just weighting and comparing these scores across documents.
If you had Google's index, you'd be a long way towards being able to replicate Google's results, but I don't think that would lead to the kind of innovation you're hoping for.
Not even close. I've used Common Crawl, it has nowhere near the breadth that Google has in their index.
Problem no. 1 is that website owners block non Google crawlers because of limited bandwidth. So you can't reliably even get started on creating your own search engine. Once we have the data available, we can figure out the other bits and what they require. But to get to that door, you need access to the crawl.
You don't need to have everything in the Google index to beat Google.
You need to be better than Google in the search niche that you'll serve.
And for that, at the bare minimum, you need access to all the crawl data that Google has to get started, then throw away the bits that you don't need.
Quote via [2]
--- start quote ---
When Mr. Maril started researching how sites treated Google’s crawler, he downloaded 17 million so-called robots.txt files — essentially rules of the road posted by nearly every website laying out where crawlers can go — and found many examples where Google had greater access than competitors.
ScienceDirect, a site for peer-reviewed papers, permits only Google’s crawler to have access to links containing PDF documents. Only Google’s computers get access to listings on PBS Kids. On Alibaba.com, the U.S. site of the Chinese e-commerce giant Alibaba, only Google’s crawler is given access to pages that list products.
--- end quote ---
[1] https://www.nytimes.com/2020/12/14/technology/how-google-dom...
[2] https://daringfireball.net/linked/2020/12/14/wakabayashi-goo...
When they saw crawler they don't mean Googlebot or something.
They mean the whole thing you've described, the search engine as a backend.
What the law proposes is that other companies should be able to just buy the search engine service from a new company split from Google, of which Google which will just be just another client.
>I don't see a good way to split indexing out as a separate company from the rest of the search engine. It's tightly integrated with ranking.
The idea is to split the whole search part from Google. Let them have the ad business, Android and so on, and just rent the search from the spin-off company...
And at the same time, on the same website I need to enter Google-provided captcha. To fight robots.
In the end, the point would be to make Google closer to what it was at the beginning -- just input and output. No ads on top of it, no bundling with other offerings etc. And if the publisher's ranking remains as good as it should, then surely some will be willing to pay not only for the raw data, but the ranking as well.
For site owners, it may prove to be lower maintenance to simply whitelist such a bot for crawling, though on the downside they may want to pick and choose which search engines can index it, and since the crawl (assumedly) would use one UA it would complicate how site owners can tell respective search engines what they're allowed to do with the crawl data.
While we're at it, how about making shady practices about "last seat available" and "secure your seat" and "sit with your family!" and so forth illegal. "Upgrade to clue!"
Oh fuck NO. Apple has saved me from scummy apps more times than I can remember. They always refund without question, including when I fell for Match.com's "Pay up to see how many bots like you" scam.
Right now I'm fighting to get my money back from Couchsurfing.com (they started throwing a "COVID contribution" prompt on the app and the website that blocks you from doing anything, can't even delete your account until you pay) and they're flat out ignoring me. They use a custom payments system. If it was a regular In-App Purchase, Apple would have refunded me within hours by now.
Anyone clamoring for the protections of the App Store to be abolished is very likely someone salivating to prey upon users.
They own Windows + Internet Explorer/Edge + Bing and a lot of internet services.
I think it's problematic that Skype gets auto-installed eery time Windows updates.
While Microsoft bundles, it's not problematic like Google or Apple. Their way of doing things is different.
The problem with the smart phone world is that apps are distributed through stores not websites. There isn't any worthy exclusive Windows Store app I can find. Every useful software is available from the websites.
In the smart phone world, as a device manufacturer you have to get Google's blessings. They control the play store. And as a device manufacturer, no play store = no sales.
The app store parasite model needs to end. I get no viruses in years, and I download software from websites all the time on Windows 10.
We're beginning to see the limitations of globalization. For all the anti-trust rhetoric from the US, it's unlikely it'll accept this level of over-reach without pushing back. Imagine a US company getting approval for a merger from the US and not getting approval from the EU, what happens then? Can China also grant itself this level of influence over American business?
We're definitely in the beginning stages of a new world order that's far less cohesive, with distributed levels of influence.
I don't think it's shocking at all. Every market is free to regulate itself however it sees fit, regardless of what "nationality" players on it have. It's interesting hardly anyone blinks an eye when that regulation allows "American" companies to save costs in developing countries but there are complaints when it disadvantages those companies, often for the same kinds of regulation: labour and environmental.
Both of these are already the status quo even before this law
Let's not forget that this is a US based website. It's only natural that US based issues and US based viewpoints will always surface.
- Bumble
- Badoo
- Eharmony
- Zoosk
- ChrstianMingle
- JDate
- tons of international and niche sites and apps
- many, many others
The idea that there is monopoly power being leveraged here to prevent other dating sites from being started and grown and be successful has very little evidence behind it.
If you agree that Apple should be on the list, then Match Group should without question be on the list.
Instead, the reason why they are bad, is due to things like barriers to entry, and the anti competitive practices that they enact.
For dating apps, I don't see how match group is putting up anything that could be described as a barrier to entry, for other dating apps.
Whereas Apple is absolutely doing things that effect competition in the market, by, for example, preventing competing app stores on the Iphone.
Therefore, Apple's actions are much worse than Match Groups, even though they have a smaller percentage of the market.
In your opinion, what is the real reason for no allowing alternative browsers?
I like this idea, but more precisely I'd put the index with the crawler as well and only keep the ranking/filtering and display part separate. I'd like to see many "heads" on top of the crawler/indexer.
Regarding "match". You would be surprised how much fraud exits in the dating industry. How many people get payed to keep paying customers engaged with the app. Also, just wait until your Tinder gold expries. You will get tons of (hidden) likes.
Microsoft
They might be the ones who finally push it for mainstream adoption, then PayPal can go kick rocks.
If it fails, then maaaybe we could think about it. Still not as bad as these 4 major offenders.
As such, the only reasonable thing to do is to slowly ween ourselves off American tech in favor of letting our our own grow, just like China did. They probably won't be as good, but unless we want to be completely dependent on a foreign power for all our IT, we have no choice. And really, we have no obligation to let American companies pick the fruits of our markets out of some weird sense of "fairness" of free markets. The world is not fair. Of course, there will be retaliations, but for any non-IT tech there are local or Chinese substitutes.
the issue is even deeper. You can't compete without recreating the same issues that those giants already have in the US or China. I don't even want to compete with Facebook just to have European Facebook, it'd suck just as much.
I want smaller companies, which don't abuse data, which don't sacrifice security for 'hypergrowth', who are able to moderate their content and comply with laws rather than ignore them, and so on. Companies like this will never compete with American or Chinese giants in a 'free market'. It's like having a green energy company compete with companies that can legally pour their waste into the river.
The EU needs to create rules to reward small companies and to curb large ones. Don't copy "maximal consumer welfare" doctrines or prioritise convenience, promote decentralisation. It looks like there's some good stuff in these new laws, but they don't go far enough yet.
Why would smaller companies be better positioned for those things?
any given smaller company is non-essential, meaning it cannot challenge lawmakers on the grounds of being essential, or bully lawmakers into submission.
Smallness also incentivises business models that aren't data-analytics driven because small companies simply lack huge pools of user-data, hopefully diminishing the toxic surveillance-capital model of predominantly large firms.
Also, the US has 50% of the worldwide online advertisement market in a single cultural region.
There's two things the EU could do here: force big companies to split up (so they can't favour their own services) and require social networks to be interoperable (using ActivityPub or similar).
The US got to take their wealth and invest it in innovation and growth. Europe had to beg, borrow and steal just to rebuild what it had a couple of decades earlier.
It certainly wasn’t charity, and most of it was via loans that were repaid. So yes, thank you, but equally don’t get too big for your boots, it was driven by only shrewd self-interest.
So why Germany and not say France or the UK? Countries that saw much less destruction than Germany?
For example it's difficult to create a startup in France because it's very difficult to discipline or fire anyone, and tech workers are used to clocking off at 5pm and having 35+ holiday days per year.
This means that no one's creating these epic billion dollar companies in a hurry, but at the same time the populous is defended, healthy, and not overworked. As opposed to the US where often a company's rise comes at the cost of a wealth of underpaid and mistreated workers (Amazon, Uber, we could go on).
To use an intentionally extreme analogy, your argument feels like sitting around watching the US build lovely tall pyramids with slave labour, saying that Europe's regulations get in the way of it building such tall pyramids. Well, yes, of course, the US is better, if all you're measuring is the height of the pyramids. (nevermind that the US is the easily the biggest user of slave (penal) labour outside of China)
It seems like US workers and the US public lose out on almost every other measurement.
Well China would like to have a word with about your "tiny little" country. A world exists outside of the borders of the USA.
There"s always someone bigger than you so "tiny little" is usually not a good platform for an argument.
> If for some reason you still succeed, now you have to recruit tens of thousands of people to move to your tiny little country
Further, the idea that all employees of one company must work in one country is clearly not the case. Or did globalisation not happen?
> but also because who wants to spend the energy to learn Swedish for a single job
Whilst not in huge numbers, generalisations such as this also do not help your argument.
European culture is more homogeneous than I think a lot of people in Europe appreciate. And that's the root of the tech issues, in that the culture doesn't foster risk taking.
Jury's still out on that one, Apple Music is making very large in roads, and Spotify is starting to struggle.
It quite possible for the statement "the US have greater cultural homogeneity than the EU" to true alongside the statement:
> European culture is more homogeneous than I think a lot of people in Europe appreciate.
And I would argue that's exactly the case. Having been in startup that seriously looked at expanding in the US vs expanding in the rest of the EU (it expanded into the US), I'm confident to say the US is far more homogenous. Interestingly that doesn't necessarily mean that it's easier for an EU company to expand the US rather than the EU. But it does mean that EU startups have a much larger bump in the road than US companies when they're expanding.
Large in roads amongst Apple customers or large in roads to the general market?
I'm just a realist. Spotify is not big by comparison. I just looked up a list of the 30 most highly valuated America, and the least valuable was bigger than Spotify.
> European culture is more homogeneous than I think a lot of people in Europe appreciate
I've lived in both and it's just no comparison. What differences you find within the US you find within single European countries. The fact is that an American startup can target a huge, homogeneous and rich country with barely any extra work.
It's also a lot different than American culture -- I've long maintained that as far as cultural attitudes and preferences go, a person from New York has more in common with someone from Mexico City or Sao Paolo than someone from Paris or London.
Interesting—do you mind expanding on this?
I believe most of those big companies fed from Europe but not only from a market perspective but from a technological perspective.
Contrary to what the media try to depict, most of the tech on which those companies are built were designed in Europe and most of the brain that lead them studied in Europe.
I believe Americans are the best to market an idea, as they mostly focus on optimizing for the product market fit. Which produce the biggest market capitalizations.
But long term planning is still mostly done in Europe as it's considered too expensive almost everwhere else in the world, particularly in the states where remnants from the cold war makes the concept of the government pooling money to fund big projects a politicaly incorrect idea.
So the next logical step will be that like last time Americans will not produce anything meaningful for next 20 years which will give the time to Europe to capitalize on their previous innovations and to produce the next generation of ideas, and the cycle will repeat.
But if we wanted to increase the pace of those innovations, some bipartite solutions could be imagined...
In the US it is taken for granted that there has been a virtuous cycle between public research money, research universities, venture capital and tech companies. My impression is that most of the tech originates in this ecosystem.
I don't see why not. The EU's GDP is almost as big as the USA's, and the EU has plenty of educated people who understand the relevant technologies.
> As such, the only reasonable thing to do is to slowly ween ourselves off American tech in favor of letting our our own grow, just like China did.
Yes. This needs to be done not just for web services and social networks, but for the whole technology stack including chips and operating systems.
Try convincing tens of thousands of engineers to learn Polish, Estonian or Dutch. Some will do it, or are fine living in a country without speaking the language, but surely it puts a wet blanket on job market mobility. It's a hard sell: "Come to Stockholm to work with us, learn a new language that is useless anywhere else, and adapt to our culture or be forever an outsider. Oh, and your next job might be in Denmark, so do it all over again."
Google has 120,000 employees today. You may find half of that in Germany, France or the UK, but not in the rest of the 40-ish countries scattered throughout the continent.
> Yes. This needs to be done not just for web services and social networks, but for the whole technology stack including chips and operating systems.
Totally agree, especially chips. This one is the hardest though.
By the way, Danish, Norwegian and Swedish are very similar to each other, and they are not tricky at all compared to German or Dutch. Most other rich EU countries are large enough that learning their language opens up lots of career possibilities. Eastern Europe is a different story. Many do well, but these countries still tend to suffer from a net brain drain towards the richer countries.
ARM was until recently a European company. This is part of the dynamic - some companies in the US have huge piles of cash. If a European company gets successful enough, there'll be interest from a large US company in acquiring it.
These 50 countries are so different (sarcasm) culturally and linguistically that in every single one of them almost everybody uses the same Google ;-)
I wouldn't mind using a Dutch search engine or a Portuguese social network if they were nearly as good.
I don't understand how is it harder to engineer a better search engine (or anything) in the EU than in the US.
If this comes to pass as described, this is a landslide shift in mentality. Paying fines for shady practices will no longer simply be the cost of doing business, but there's a real risk of being locked out of a major market.
The risk is that too large fines are bankruptcy events so companies gamble on polluting and then shut down after making a few years of profit. Companies that get environmental permits such as mines or chemical industry, should have to deposit the money required to restore the environment - even after bankruptcy.
It didn't happened like that. And it was not a fine, big or small. It just has to shutdown operations until the problem is fixed. So, it auto-scales with the size of the factory.
It works, it's proven, why not use it for tech ?
For tech there is obviously no environmental “cleanup” after bankruptcy.
Yes! And that's how it should be.
A fine is just a permission slip for rich people.
Since e.g. Apple holds something like $200b in cash, fines are anti-competitive in this field. A small player can't afford to risk a fine; Apple can pay any level of fine, if it ultimately needs to.
If (in the US) corporations are people, then clearly corporations should face the prospect of ending their existence if they make an egregious-enough violation: the corporate death penalty.
That being said, of course Google and FB are never going to be banned in the EU. They'll lobby to death to get the regulation to be "reasonable", and they'll mostly comply because they want their part of the advertising market, and they'll pay the fines when they get caught.
Sure they can be banned EU-wide, although it can obviously be circumvented by the ambitious. Have you been paying attention to EU politics lately regarding the digital single market? Because the EU already has huge behind-the-scenes plans (generally unannounced) for EU based platforms and developments.
Given that Brexit is looming, this doesn't sound very sustainable. If the people feel the EU's power is no longer legitimate, there may be consequences.
More likely the EU would negotiate with the companies rather than outright ban them.
Ultimately, local politicians are the EU's decision-makers. MEPs sit as members of national political parties; the European Council are heads of national governments.
Passing the buck to the EU is a weak position, and in general a mistruth.
There aren't many issues divides nations in the EU from each other - most, if not all, decisions that the EU takes have divisions within nations (between the political groups), not without (between national groups).
You can argue that "blame the EU" is a position that the UK government has taken successfully - continually blaming the EU for any problems that they have created themselves (sometimes blaming the EU despite incompetently avoiding the EU's clear recommendations).
But, now that the UK has left the EU, they don't have anyone left to blame for their own poor planning and decisions. We'll see how that pans out.
(they were still rioting over other issues, just not Amazon)
As far as I can tell, this had no noticable effect on the political parties. I think you are overestimating the power of large tech companies to influence foreign EU democracies.
There are other examples, including one involving google, where they tried to block access to certain services and expected the population to blame their government.
Unless you can give me a counter example, I think it's more likely people will blame the tech company.
[1] https://www.ft.com/content/9c9bf084-994f-11e5-95c7-d47aa298f...
Buying competitors, actions which are already well regulated and overseen by the FTC? And European bodies?
And then ... ?
Giving away software for free?
The populism is getting way out of hand.
First, if there are some anti-competitive issues to address, the EU should do that, but it's hard to do in retrospect.
Google / Chrome / Android is an obvious one, Apple's issue with App Store another, but Facebook / Insta / What's a much less obvious one.
Second, the real underlying issue is Europe's failure to produce anything material in this landscape. They have almost no winners and are being dominated, these are the acts of system with a weak hand. If SAP and a bunch of other European companies dominated the US landscape, this legislation would be different.
Apple would have to significantly redesign their entire OSs if this comes to pass. Will be really interesting to see!
You can argue that someone else would fill that gap but they didn't really seem to be doing that before Apple stepped in. In fact I would guess that Apple would have preferred not to have developed them, it's not as if they generate any direct revenue.
I think you may have inadvertently stumbled on the point of these laws.
The EU doesn't want companies getting to Google or Apple scale, and all the power that amasses with it, without it being possible to ensure they're holding up EU ideals, rather than their own.
The sanest thing you can do is use LineageOS, but I can't really trust the LineageOS team since the april fools fiasco.
The lack of a third option is simply because of incompetence, not monopoly.
Would Apple itself be here if Microsoft didn't port Office to their OS?
Also size-based limits would be hard to create/enforce. IBM has about 350K employees wordwide. McDonalds has about 200K. Google has about 100K. Amazon 1.1M. Do you look at market cap? The industry specifically?
It's a complex problem, that's why there is no simple solution.
"Mergers: Commission fines Facebook €110 million for providing misleading information about WhatsApp takeover" https://ec.europa.eu/commission/presscorner/detail/en/IP_17_...
Please, please make it happen...
I don't see any of the major players having a hissy fit and walking away from that kinda user-base. Though the prospect of large companies hiding behind firewalls to protect themselves from EU users, does bemuse me.
Anecdotal and hardly conclusive but I work in UK local government and we get a weekly email from our web proxy showing the top 50 domains by proxy traffic in that period. The usual split is something like 42 domains that are linked to US companies, 5 are UK companies with the remainder being the rest of the world (including the EU). That's been the case for years now.
It's common for a pragmatic 'Cassandra' to point to the newest evidence as permission for people to finally wake up to the problem rather than berating them for not paying attention any earlier.
Surely the pandemic forced them to use some more tech.
I will use this in the future as an example for this simpler (and cheaper) system working just fine.
I would add that despite the funding coming from the government,
> The work of DW is regulated by the Deutsche Welle Act, meaning that content is intended to be independent of government influence [0]
Specifically, the supervisory board of Deutsche Welle consists of 7 members that get elected by the parliament and the acting federal government and another 10 members that come from non-profit organizations like labor unions, religious groups, cultural and sports organizations, among others.[1]
[0] https://en.wikipedia.org/wiki/Deutsche_Welle
[1] https://de.wikipedia.org/wiki/Deutsche_Welle#Aufsichtsgremie...
Ms. Vestager kind of glosses over this (2:40 min into the interview video).
They're well within their rights to do it of course, that's how trade works, but I expect the US to defend American companies from unfair sanctions like this one.
Seems that language and regulations are not the barriers here.
Even US companies aren't that "unified", they're hailing from a specific state (often California) and have nothing to do with the other 49. You could easily swap "California" with "Germany".
Looks to me like access to capital and risk aversion are the biggest problems. Always have been.
The UK is by far the best place for a startup in Europe, and I'd wager that will stay the same even after Brexit, as long as every other country has this obsession with saving cash and not investing in risky business, or any business at all.
Localization is easy, getting millions for a startup is hard. And God forbid you fail, you will very likely never get any funding from anyone in the EU and will have to move to the US. Such a waste of entrepreneurs.
Yes, because that US company was already big in the first place thanks to its foothold in the US (a single-language market). The same thing was starting to happen with AliExpress just before the pandemic but I'm not so sure how things stand right now (politics-wise, mostly).
It's pretty hard close to impossible to become a "google" or "facebook" in the local German or French markets big enough to conquer the rest of the continent. Spotify and the rest of the similar European products have had the success that they encountered precisely because they focused on an international (i.e. English-speaking) market first.
Basically, I think starting with just one language is a mistake - if you're aiming for the whole EU market, start with as many languages as you can.
Of course, that will be more expensive on a continent where funding is not easily available.
Some resellers, Wish and Joom for example, have ads in every European language, it's the same ad but with different text/voiceover. Seems to work pretty well for them.
US companies can create massive businesses within the US. They are backed by massive VCs, national press.
Once you're 'big in the US' you can knock out many other countries like dominos - except for those that are protected, or too big, or both.
EU nations are mostly separate. The Swedish market is basically too small to be relevant for most things, to have a credible business model you have to raise money on the basis of 'EU wide' and that's a hard thing to do.
French media doesn't care one bit about Swedish startups, just the opposite, they probably prefer their own.
Ebay and Amazon bought up all their smaller competition in Europe, that same pattern is repeated.
So it's an existential problem.
We need a degree of fiscal integration at the federal level, similar to what the US have. At that point, smart people running smart companies will be free enough to deal with the cultural-border problems just fine.
Yes EU unifies a lot of things, but also leaves a lot of details up to the individual nations which means things aren't quite as similar as one might imagine.
EU visitors are obviously a small fraction of their traffic, which allows them to do this. But there are millions of other websites where that's true. And yet, none of them feel the need to implement geoblocking. I just tried Four Seasons Total Landscaping, and it works fine.
So there's something else going on. To cut to the chase, it's publishers being ideological and idiotic: they are trying to make some point about EU imperialism and US sovereignty, by pretending that the EU has powers it doesn't have.
As a European citizen, I don't want this.
It also costs money to implement GDPR
Yes, that's what regulations do, and it is for the _benefit_ of the citizens.
Oh I'm sure the service providers took information security very seriously as they proclaimed to. In which case, GDPR is only a legal framework they had no trouble (and serious expenses) to adhere to.
Could be, but another explanation is that the newspapers have heard of GDPR and don’t understand it (detailed legalese that they can skip by not serving EU citizens, I can’t really blame them), while Four Seasons Total Landscaping hasn’t even heard of it (weird foreign thing about tech — who cares? We sell spades, not computers!)
I do not expect that to happen.
I just imagine billions of dollars burnt to no avail.
It's very unlikely though -- google bends over backwards to do business in China.
Also what does the HN community think will happen to the "Get big fast then exit" strategy if these conglomerates get busted up? Will that SV investor scene die or change? I'm already seeing the rise of bootstrappers and the term lifestyle business no longer being a "lesser-than" moniker.
Just what's on my mind this morning, would love good discussion.
https://ec.europa.eu/commission/presscorner/detail/en/ip_20_...
https://threatpost.com/spotify-changes-passwords-data-breach...
Spotify's side: https://www.timetoplayfair.com/facts/ (this page is theirs)
Apple's side: https://www.apple.com/newsroom/2019/03/addressing-spotifys-c...
To pass the Council a Regulation like this only requires a Qualified Majority,[0] that's votes in favour from at least 14 countries representing at least 65% of the EU's population.
[0] https://en.wikipedia.org/wiki/Voting_in_the_Council_of_the_E...
Do "shadow profiles" of people who never registered but have data collected on them count towards this?
"> Europe adopts resolution on security through and “security despite” despite encryption" see https://news.ycombinator.com/item?id=25429373
it becomes a lot different and realistic goal to achieve. "think DRM!" too. Lawful Interception on "legal comms channels" are then the norm, and e2ee (because it breaks LI) is illegal.
I see a lot of critiques about "bundling", but the fact is every deal is a package deal. Force Apple to allow installing a non-Safari browser; you're still running iOS, you're still using Broadcom chips, you're still indirectly supporting the CCP, etc. But good for Apple because these token changes keep people from leaving their product altogether.
The sad irony is that these actions will further entrench established firms by diminishing/obviating competitive advantages of would-be competitors, and/or yield worse outcomes for consumers. This has been the case throughout the entire history of "anti-trust" law.
Aside: Competing is not "anti-competitive". A "competitive market" is not determined by counting extant competitors, but by whether or not would-be competitors are interfered with by third-parties.
The GDPR, in my opinion, turned out to be a terrific first step (which does not mean it does not have its issues). It's been a rocky two+ years, but most sites are already up to a point where they actually give me a way to express my consent, or (more importantly) to object to processing on grounds of legitimate interest (which is where advertisers come in).
And that's just one example. The GDPR starts with the following sentence (in recital 1): The protection of natural persons in relation to the processing of personal data is a fundamental right. And the EU is living up to it.
It's empowering to actually have a say in how one's own data is being processed, rather than just being the product at someone else's mercy.
I can only welcome any further steps in this direction. I have no issues with some entity getting rich and powerful, the problem is when they get too powerful.
This is what happens when you get incompetent non technical people to regulate on things.
Most people still just accept everything and we get terrible, government mandated ui.
Oh and let's not forget all the foreign websites I can't access anymore because they're not compliant and required to block traffic from EU.
Why can't I read anymore local USA newspapers? Is this freedom?
It's the EU that it's getting too powerful (unless we look at the economy)
Weird, I manually opt out of everything on most websites I visit and I find it pretty straightforward. There's only a handful of flows that most websites use, so it's not that difficult. There are some egregious exceptions (Yahoo being a particularly annoying one), but that's a small number of cases and, in most cases, it makes me realise I didn't actually care that much about reading their content, so I just move on.
Also, the dark patterns are not a result of the law, but a result of insufficient law enforcement. If the EU comissions starts going after a few websites that employ particularly dark patterns for consent, you'll see everyone fall in line.
> Is this freedom?
Yup, it's that website's freedom to block EU traffic.
But the point is that a bunch of people don't want to be blocked from using that website, and it is because of the problems with the GDPR.
The OP was talking about "their" freedom to access that website. GDPR claims to support his freedom, but all it has done is resulting in him being unable to access local american news websites.
Which does not seem like it helps his freedom much at all.
The EU makes a law, and suddenly a bunch of newspapers choose to exclude europeans.
> Really anything except the Backwater End Times and The Suburbian Dystopia Monthly
Sour grapes thinking. If that were really the case people wouldn't notice it at all. You click on a link because it interests you, then see that as a european you can't access it and then tell yourself that it didn't actually interest you.
There's a terrific browser extension called Consent Manager [1] that automatizes it.
[1] https://github.com/privacycloud/consent-manager-web-ext
As for freedom, well, you're free to just consent and get your identity traded and become a digital slave.
By and large the law works just as it was meant to : showing in broad daylight the extent of what the data market has become.
Yes. It is freedom. I'll take a few popups over the worst excesses of big tech privacy invasion, rent-seeking and monopolistic practices.
If a site wants me to do that all individually, I close the window. ¯\_(ツ)_/¯. Oh, and I probably should report them, because it's almost certainly illegal.
And yes, this is freedom. The freedom for me to choose. I can still click "accept all" if I want to. I couldn't before, and I didn't even know how much there was.
What you meant is "convenience". Freedom is not always convenient.
Well, this is exactly the thing that's illegal under GDPR. Don't blame the regulator if websites are blatantly not complying with the law.
The popups is the tiny, visible part of the GDPR. The rest of the iceberg that is the GDPR is that those sites already had to think about how they handle your data.
I hope the popups thing will be resolved by clarification and some stiff example-making fines. Hopefully those examples make it clear that no kind of "optional" tracking can be included via a prominent "Accept and continue" button and that all such default actions must lead to zero tracking/third party ad cookies being used. Once sites realize that almost no one will make an effort and actively enable tracking, these things will disapppear (as will a lot of the sites that can't find alternative revenue - this is a good thing)
I think GDPR, and the so-called "cookie law" before it, was done pretty competently. The principles are pretty clear: data policies/controllers/etc. have to be explicit and limited; personal data collection requires consent of the people involved; opting into a service implies consent for data required by that service (e.g. cookies for shopping carts, local storage for highscores, etc.); if consent isn't implied, it must be requested explicitly.
Explicit consent is a last resort, and only required when collecting personal data which (a) isn't directly required to provide a service or (b) comes from people who aren't users of your service (i.e. who haven't opted in). Advertising is a good example, since the "users" of an ad network (those opting to use it) are the people buying and selling ad space; people viewing those ads aren't users (they haven't opted in); and advertising isn't required to provide a service (e.g. a news site; it might be indirectly required, for raising revenue, but the site would work just the same with any revenue source).
The fact you're tired of popups shows that GDPR is working; the extent of data collection, surveillance, etc. has been brought to the surface. Your anger is misdirected though: it's not GDPR's fault that so many surveillance organisations are trying to track and target you; quite the opposite!
> make it easy to accept everything in one click
> Is this freedom?
Do you think it would be "freedom" to waive all of your waivable rights, to anyone and everyone who asks, without even knowing they asked? That's what an automated banner-clicker would be doing, since consent popups are not restricted to talking about cookies (just like GDPR isn't about cookies); they can ask for pretty much anything. In fact, I imagine many of them ask for more than they're legally allowed (this happens all the time, e.g. many privacy policies do this, many "warranty void if removed" stickers are not legally enforcable, etc.).
If you'd instead rather tell your browser to accept certain pre-selected terms which you're comfortable with, then you're in luck! There's a standard for that called P3P https://en.wikipedia.org/wiki/P3P It's not supported by Chrome, but you can enable it in Firefox, as long as you're using version 2 (it was removed in Firefox 3). Then you just need to convince every Web site you visit to implement it. Good luck!
It absolutely is the fault of GDPR that now a bunch of websites in the US are blocking him.
There was a new law, and now a bunch of newspapers responded to that law. As predicted.
It was entirely predicted that this was going to be the result of GDPR. It should be obvious that some companies would simply block people from the EU, and those people could be worse off for being blocked.
> The fact you're tired of popups shows that GDPR is working
But the person does not want those popups. They simply don't care that much about data tracking. And instead, they are more annoyed by the popups. This is a negative consequence that you have to recognize.
> Do you think it would be "freedom" to waive all of your waivable rights
Well here is a better solution. The people who want the popups to show up, all the time, with the horrible UI, could have that. But what if, for everyone else, we had a single click button that said "ignore all this GDPR stuff, and go back to how it was before".
That way, people for prefer the frequent popups can have them, and the people who don't want that, can just agree to all of it, at once, and not have to worry about it anymore, if we choose do so.
That would be a choice, right? Thats freedom.
The dark patterns are straight up non-compliant with the law. The GDPR mandates about 0 of those popups, it's the shitty companies that "comply" because they want to abuse your data that make those popups.
Same with the foreign newspapers, they're _not_ required to block anything. They just chose to because it's somehow easier to block traffic than to not track them.
Let's not kid ourselves, the main reason EU is pushing against them so easily is that they're not European so they have nothing to lose.
See how little resistance from the EU, VW and other EU major car manufacturers faced with emission cheating/scandals and the amount of lobbying they do.
If Google and Facebook would be locally home grown and provide tens of thousands of well paid jobs and billions in tax revenue to the EU economy, not to mention provide the EU with a global (surveillance)hegemony on tech, it would be safe to assume the EU would let many of the current things slide.
The EU consistently puts down very strict regulations regarding emissions and with the new 2021 laws it's predicted VW alone will have to pay 4.5 billion euro fines to the EU for not reaching the emission targets. It's one of the reasons they started selling the ID.3 when it was only half-finished.
These laws are not designed to hit only Google and Facebook they are hitting tech in general, including local companies. If the EU were to have any locally home grown tech companies to speak of, it would be safe to assume the EU would let many of the current things slide.
I can only assume the EU gave up completely on its own businesses to ever be able to compete with any US tech company. These regulations upon regulations increasing the bar of entry continuously practically guarantee that there won't ever be a competitor to any US tech company coming out of the EU.
The EU can empower citizens with anti tech corporate action while also dropping the ball whean dealing with European car manufacturers. It's not either/or.
https://www.enforcementtracker.com/
It will cost < 1000 € to go after a big tech company that doesn't respect GDPR ( Cfr. If you start it in the Netherlands)
Data protection in the EU goes back to before Facebook was even founded. Google was still a small startup. The GDPR was just the next iteration of it.
In any case, even if that were the case, then recognizing the right to one's own data as a fundamental right would just be an empty pretext.
> See how little resistance from the EU, VW and other EU major car manufacturers faced with emission cheating/scandals and the amount of lobbying they do.
It's possible for someone to do well in one area, and to perform badly in another.
As a counterpoint, the GDPR has been enforced just as strongly against European banks, for example.
Edit: here you go, the first EU incarnation that recognizes the rights of individual to their data, published in October 1995 (when none of these tech giants even existed):
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A...
This isn't because I dislike capitalism or business - they really enrich everyone -- it's just that checks and balances are always better for everyone.
This is the opposite of capitalism, this is big companies colluding with the government to keep their dominant position and prevent competition. For example, look at how VATMOSS forced sellers to use Amazon / eBay or implement complicated tracking / accounting.
I don’t think that was originally the case, I think that’s something campaigners managed to get later.
I think VATMOSS happened because big companies chose to operate from whichever EU country had the lowest VAT rate, and charged all sales at that VAT rate, which would explain why it happened. But I’m not a lawyer and I wasn’t doing B2C self employment at the time of the change, so don’t take my word for it.
But - this method doesn't allow for over-regulation, over-government, and megafines. The benefits go to small and medium-sized European businesses, instead of the European bureaucrat class, so its a no-go.
Yay.
[edit]: looks like the brits jumped ship just in time.
We should be grateful it doesn't look like they're screwing up small businesses (VATMESS) or the entire internet (cookie law, GDPR, copyright link tax) this time
That means anyone storing any kind of consumer data had to consider a) how to report on what they were storing if asked and b) how to delete data if asked. Banks and others spent massive amounts of cash on implementing GDPR. It was a major breakthrough in getting corporations to take privacy seriously.
Has it solved surveillance capitalism? No. And for most of us dumb consumers we're just "ugggh.... annoying modals about privacy on every website".
But it's the first step towards having some kind of protection for consumers and it shows, despite lobbyists or otherwise, governments can have a real impact. And now the EU is building on that success.
As a small business, that is just an extra pile of regulations and pain I need to deal with that previous competitors didn't have.
And give it another 10 years and the same GDPR regulations will have entirely established and cemented the tech giants (the only ones with the army of lawyers on retainer) as the only players possible.
That was ICANN's decision. They implemented a scorched-earth policy in response to the GDPR rather than, say, showing corporate ownership information and hiding personal ownership information.
It was petty, and, I imagine, would not have happened if ICANN wasn't a US corporation.
and most of them use dark patterns to not let us disable analytics.
There are websites with hundreds of "partners" that you have to disable one by one if you don't want to get their cookies.
For once the EU is fighting the good fight, but they have no teeth. Look at the quagmire that is Google privacy options list.
There are already precedents of large fines for similar bullshit.
It just takes a very long time, but when doing business in the EU, following the letter of these regulations won't be enough.
The way you improve the tech scene is by providing better alternatives. Music piracy was reduced through services like Spotify rather than some business/political people getting sites 'removed'. Elon Musk creates OpenAI with the goal of building safe AGI, the JS creator created Brave for privacy. Good luck trying to start any of these projects here.
Laws that try to moderate only create a chase that goes in circles. They are not a solution.