Let's dig in on the substance of this claim. I think @matthewstoller is wrong here, interoperability will "work" with or without break-ups. It doesn't solve every problem tho. These are different tools that accomplish different goals, both important. Here's how they interact: 1/6
Interoperability opens up networks so the network effects are no longer locking users in to the incumbent network. That means competitors to Facebook will be more appealing to users because they can still communicate with their friends. 2/6
That's a huge benefit, even if we can't get FB broken up. Interoperability will make it much easier to compete against Facebook. Requiring it by law will give confidence to entrepreneurs & investors to start a product that actually competes against FB, not just try to get bought.
On top of interoperability, we could jumpstart competition with big divestitures from Facebook, a break-up. A break-up would provide built in guaranteed competitors, if we worried that insufficient competition would enter the market with interoperability alone. 4/6
If we do get a break-up, interoperability becomes particularly important for network industries like Facebook. Without interop, I think it's likely that a monopoly would re-form in social networking. If we leave those network effects in place they'll work to promote monopoly. 5/6
So interoperability and break-ups are both important tools. Interoperability is needed whether we get break-ups or not, but break-up could jumpstart competition that interoperability makes possible. 6/6

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More from @CharlottesWWWeb

11 Mar
Starting soon: Senate #Antitrust Subcommittee talks hugely important priority: antitrust reform! Sen @AmyKlobuchar 's antitrust reform bill will make it easier to bring and to win antitrust cases including break ups! judiciary.senate.gov/meetings/compe…
@amyklobuchar Klobuchar on "gatekeeper" platforms: Google can use it's leverage to hold companies hostage. If there was greater competition, you would see companies that would come up with innovations that would solve some of the problems with the platforms that we see today. #antitrustreform
This Zuckerberg email is *so* illustrative! He said these competitors are nascent, but they could be very disruptive to us. @amyklobuchar points out, "disruptive" is a *good* word! We *want* disruptive competition. "We need to reply to those emails." She says. "With legislation."
Read 31 tweets
10 Mar 20
The Self-Preferencing hearing is getting started shortly! You can watch live online here: judiciary.senate.gov/meetings/compe… #PlatformCompetition
Starting off with @SenMikeLee: FTC & DOJ are investigating whether tech giants have violated the antitrust laws. Big is not categorically bad he says, our antitrust laws tolerate monopolies, if they're acquired by business acumen or a better product. #PlatformCompetition
@SenMikeLee Really appreciate so many Senators being here for the subcommittee hearing when there are so many other issues taking their time today! We've got @SenMikeLee, @SenAmyKlobuchar, @SenBlumenthal, @SenBooker,
@HawleyMO, and @MarshaBlackburn in attendance. #PlatformCompetition
Read 38 tweets
15 May 19
Getting started at the #StiglerCompetition conference. First up, @ProfFionasm presents her joint paper with @publicknowledge's Gene Kimmelman, Doug Melamed, @ArielEzrachi, Roberta Katz, and others.
@ProfFionasm @publicknowledge @ArielEzrachi Free is not a special zone where antitrust doesn't apply. Users barter with their data.
--@ProfFionasm #StiglerCompetition
@ProfFionasm @publicknowledge @ArielEzrachi Platforms fear disintermediation by a complementary product. This means they may act to reduce that threat by making thing harder for the complementary products that rely on their system today. --@ProfFionasm #StiglerCompetition
Read 28 tweets

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