Lina Khan, Big Tech Critic, Will Lead the FTC
npr.org
npr.org
https://text.npr.org/2021/06/15/1006807299/lina-khan-promine...
(Was having problems retrieving the full blown version.)
The New Brandeis Movement: America’s Antimonopoly Debate by Lina Khan https://academic.oup.com/jeclap/article/9/3/131/4915966
"We learned long ago that liberty could be preserved only by limiting in some way the freedom of action of individuals; that otherwise liberty would necessarily yield to absolutism; and in the same way we have learned that unless there be regulation of competition, its excesses will lead to the destruction of competition, and monopoly will take its place." – Louis Brandeis
But appointing someone so inexperienced to such a high office is not something you do you if you are serious about governing.
You’re complaining about someone who represents your interests, as opposed to representing the interests of someone you’ll never be, a billionaire.
Even for AWS, they have Microsoft and Google as competitors and a few other companies too.
We have Apple Pay, Google Pay, Paypal making it very simple to pay for things with a simple click, just like Amazon. Amazon has inertia, but it’s not exactly in a high barrier business. Walmart supplanted Kmart, and Amazon was able to gain share from Walmart.
The switching cost is visiting a different website. If you have a good product at a price people we willing to pay, the internet makes it very possible to survive without any big retailer’s help.
The bigger problem is probably someone cloning it but with 50% cheaper materials and selling it for 70% of your price, one that I’m sure many sellers on Amazon’s flea market are aware of.
And what's really crazy is: Competition tends to force companies to compete on treating consumers well. Protecting competing businesses protects consumer welfare pretty darn well, and it provides room for innovation which stagnates when a single company dominates a field.
That's true of many non-monopolies too. And Amazon is widely known to have pretty good service. Conversely, no cellular company has ever had a monopoly in the US but a number of them are famed for poor customer service.
They're still getting paid for your services. If my ad attention is equal to dollars, why don't I also get customer service for it?
I'd argue the idea that you shouldn't pay for services, and that you shouldn't expect to get customer support, are both examples of failures of the current antitrust regime.
Phone support is, unfortunately, a hard to find commodity anywhere in tech these days. Generally I have only selected web hosts and domain registrars that have 24/7, US-based customer service. I used to have a few options, now there's very few. :/ You're lucky if they have a ticket system they respond to in less than a day.
We can't tell other countries how to operate, but we can set a bar for who we do business with, and we have the market power to encourage foreign entities to meet those standards.
This is such an exaggeration. Google is not "absolutely reprehensible and societally harmful".
If you’re being intellectually honest, the source of low prices is Chinese outsourced labor, not monopolies. Amazon could vanish tomorrow, and shit will still be cheap.
I stand by my phrasing. She had (presuming usual timelines) 3 years of work between undergrad and law school. She went from law school student to law school associate professor (on the strength of her viral rewview article).
She has 0 non-academic work experience and will now be regulating entire industries.
In context, that's "so inexperienced".
Also I think i's safe to assume you don't just "get appointed" to the lead team in SpaceX you need to actually "show" that you have what it takes.
I'm not saying she won't be good, I'm just asking how can we trust?
- 2018, worked as a Legal Fellow at the FTC in the office of Commissioner Rohit Chopra
- 2019, began serving as counsel to the House Judiciary Committee's Subcommittee on Antitrust, Commercial, and Administrative Law
- Lead the Democrat's congressional investigation into digital markets and lead the investigation into digital markets.
She then got invited to do some fellowships, advisory roles, etc... while stepping from law student to associate law school prof. None of that exposes you to the inner workings of industry.
Surely, she's a very smart and capable person. But there's a lot you don't learn in academic settings.
Regulating trillions of dollars worth of industry with only a theoretical understanding of the market, acquired only from a regulatory perspective, does not inspire confidence.
I'm not saying it's bad, I'm saying it seems like there are narratives motivating this orthogonal to good governance.
Are you saying she, with zero industry experience, is the most capable person for the job?
Bork's legal career was not propelled by any singular brilliance.
Well there was the whole Blockbuster rental history thing during his confirmation but that’s more like fun/interesting pub-trivia than anything necessarily “brilliant”.
Rein them in from doing what exactly? Buying companies and making people rich?
This is a threat to the existing donor class in Washington, which has embarked on a project since 1968 to build power through political donations, the courts, and crushing labor.
Big Tech has been playing with fire warning up to democratic politicians.
Granted, America has done such a piss-poor job of actually enforcing antitrust laws already on the books that it's hard not to read into this enforcement now as the end result of someone refusing to play ball.
Or will it go after services people love, that are free, or that revolutionize industries?
Your assumption about the implications of bipartisan support seems a little Pollyanna-ish about the degree to which politicians represent their constituents on any given issue.
https://www.google.com/amp/s/www.theverge.com/platform/amp/2... (I couldn't find individual company numbers for 2021)
[1] I guess this isn't that weird, given that similar inconsistencies shows up in all sorts of polling.
Depends on which companies you're talking about. There's widespread discontent about social media companies, but the left and right wing of the political spectrum have opposite and incompatible discontents, so I don't think it's justifiable to call it "bipartisan grassroots discontent". The non-social-media "Big Tech" companies remain extremely popular and well-regarded in surveys of the general public. Google, Amazon, and Netflix were 3 of the top 5 most loved brands of 2020, losing out only to mail carriers (and Google took second place, ahead of UPS). Google and Amazon each have two of the top 10 spots (Google + YouTube, Amazon + Amazon Prime). The idea that there is roiling popular discontent about the activities of Google and Amazon is entirely a media fabrication.
https://www.statista.com/statistics/995767/consumers-most-lo...
Two words: Peter Thiel.
The efficiency from vertical integration come from global optimizations that aren't possible for separate organizations. The negative side of that is that there is less interest in finding new ways of using each of the components and finding reusing pieces of the infrastructure.
While these optimizations are economically positive in the short term they can delay innovation that would otherwise occur.
Take a look at Google - they had a cloud before "Cloud computing" was a thing. But when they built it, it was so tightly integrated that it didn't occur to them to sell the Cloud infrastructure (after all, it wasn't the "product", it was the process).
It took someone coming in later and building a less tightly coupled system for their applications to realize that it could be a product on it's own. Sand now Google is playing catch up as they have to undo all the shortcuts they developed that only work in their system.
It's worse today with all the content moving to walled gardens. Unlike when Google started, content is increasingly being locked away. The only way to search Facebook is to use Facebook search (or get Facebook's permission).
At the very least these tech giants should be forced to offer the same APIs they use themselves. Expose the natural gaps within the integrated stack for others to build off of. That should push things so that interoperability would be at least possible.
This is why I've always liked the idea of revenue-neutral progressive taxes on corporate revenue. Tax economy of scale.
Ex. Zero corporate taxes on the first 100k of revenue. For every order of magnitude above this revenue is taxed at ~1% more.
$1M in revunue -> 1%
$1B in revenue -> 4%
$100B in revenue -> 6%
Then reduce other corporate taxes to make it revenue neutral. In the most extreme case, the 1% figure or the curve could be tuned so that this is the only tax corporations pay.
This would be a massive boon for competition. Small businesses would be easier to start. Businesses may choose to stop growing: if you're making a healthy profit, don't jeopardize your margin in a perpetual struggle to amass the most power, leaving room in the market for competitors to coexist and meaningfully compete on quality.
This discourages acquisitions and encourages companies to split: if your economy of scale isn't yielding enough to justify the tax, you could spin off multiple smaller companies that would each be more profitable. The capacity for corporations to do evil is directly proportional to concentration of power. Smaller companies won't be able to afford as many lobbyists and lawyers to subvert regulation, their threats to move their businesses will be less existential for municipalities and they'll get less-sweet sweetheart deals. Being "Too Big to Fail" would be unsustainable and wasteful. The only mergers that would occur would be where the resulting economy of scale exceeds the increased tax burden.
It could also vastly simplify tax accounting, which would be a nice bonus.
I think it is a forgone conclusion that google will be split up, apple will lose their app-store monopoly, etc.
"As a man himself sows, so he himself reaps" — Mahabharata
Apple's control of mobile computing and commerce, Google's takeover of the web, Amazon reaching into every business: Apple should be mandated to allow web downloads of apps, Google can't ethically be in charge of Chrome as a product, and Amazon can't operate so many business units to siphon off and destroy smaller businesses.
It's really nice to see Lina Khan was supported as a bipartisan appointment. It's good that she's young too -- she understands the technology, unlike a lot of our policymakers that struggle to comprehend the systems at play.
The government moves slowly, but they're clearly starting to dip their toes in. Change is coming.
If you're a capitalist, you want lean, fierce competition. What we have now is not that.
If you're a small business, startup, or free software proponent, this is a score for the home team. Let's keep it up! Keep calling and writing your legislators.
edit: while we're on that topic, I'm actually a little less concerned about that. Where I live I can get Comcast, Google Fiber, AT&T, Verizon, T Mobile, etc. Data caps are an issue, but they're nowhere near as bad as Apple telling me what I can and cannot run on their devices. Or Google swallowing the web with Chrome, Amp, ads, and the rest.
“So lets improve municipal transportation options by putting a multipurpose device in everyone’s pockets that connects to this completely parallel wireless network, which is yet to be built, connected with high bandwidth cables underground - no it wont use the telephone poles why do you ask - and itll will have a random pricing scheme, so …. what does the county board think of how this fits in the budget?”
We don't have to chuck out private enterprise but I think we can crack the whip on the private companies squandering public funds.
They are also not the ones building platforms, buying their competition (startups), putting small businesses out of work. No idea why people are so angry about ISPs - Dumb pipes for the most part.
And regardless of leadership, there are hundreds of thousands of computer nerds who are doing quite well at these companies.
And there's plenty of post-unicorn little empires (Uber, Twitter, AirBnB, Robinhood, etc.) that probably command as great salaries as the monopolies. Not to mention there are other big tech companies that don't seem to be in regulators' crosshairs- Microsoft, Oracle, even Netflix.
Neither Amazon and Apple are known to pay as great salaries as Facebook/Google, and as mentioned it's debatable whether their stock prices would've continued in as explosive growth as in past years.
At any rate, if one was to break up the big companies (which isn't even likely to happen), who's to say that AdSense Inc. or Instagram wouldn't pay as well as they did when they were internal teams?
The big monopolies, and really just Google and Facebook, might set the pace for comp and other employment practices for the industry, but they're far from the only game in town.
Of course CEOs are in a whole different social and compensation stratum, but that’s a different story.
The government should think about supporting or even mandating technical frameworks or protocols for information exchange and commerce. For example, much (although by no means all) of what Amazon does with it's product sales that provides a lot of the value is provide an information service that collects and queries a wide range of product data.
Cryptocurrencies are the starting point for this. Along with other types of decentralized systems which provide, despite the name, the best ways we have to operate large scale systems holistically (as well as democratically).
But to take a step back, rather than mandating protocols that could easily become dated and detrimental, prescribe or at least very strongly encourage systems for sharing, subscribing to and consuming those protocols. Maybe things like package registries, or perhaps package registries for smart contract programming libraries.
But overall, I do not think that we can have effective government that is not integrated into society in a high tech way. And despite the track record of governments being horrible, I doubt we can function without them.
It may be. Or it may be that you're saying something that's obviously bogus to everyone else. Downvotes only give you one bit of information, and it's orthogonal to the "right/wrong" axis.
Historically, ideas that were "obviously bogus" were often unpopular.