1. Ok I guess it's time to address the push for 'interoperability.' The main problem we have with big tech is they are too powerful. Would mandating they interconnect their systems with competitors break this power? No. The CEO of Mapbox made it clear when he testified.
2. Mapbox is interoperable with Google Maps. But that didn't stop Google from threatening Mapbox's customers and bundling its products to destroy competition. These platforms are simply not governable in their current size and scope.
3. Businesspeople are terrified of these firms. I hear from them all the time. Facebook killed Wired's traffic after Wired did a negative story on Zuck. Claimed it was a glitch. Does anyone actually expect Mark Zuckerberg to stop trying to dominate?
4. You'd need a regulator with the strength of Hercules, the desire to inflict pain of the Marquis de Sade, and the funding of the Pentagon to stop these firms from doing what they've done for 20 years, which is crush everyone in their path by twisting rules or breaking them.
5. Moreover, how would interoperability work? The bill that would mandate interoperability is the Access act. This bill says that the Federal Trade Commission would regulate big tech firms to make them interoperate. I'm sorry. The FTC?
warner.senate.gov/public/index.c…
6. The FTC's claim to fame on regulation are consent decrees with Facebook, Google, and TikTok that these firms *continue to break.* It's so bad that a profitable investment thesis is likely a portfolio of firms who have consent decrees with the FTC because they are monopolizing.
7. So let me pause here for a mirthless chuckle at the idea that a small flaccid government agency can impose regulations on the most powerful firms in the world, each of which has significant internal conflicts of interest. Image
8. And that's the main point. As @HalSinger noted, these firms are *simply not governable* in their current form. Several witnesses pointed out that obvious fact.
9. For instance, Barry Lynn did not strongly endorse interoperability, he argued it is besides the point. We do not want a government powerful enough to understand firms of this size and complexity, he said. Such firms simply should not exist.
9. Would interoperability be useful? Very much so, but only in a world where firms are far simpler and less powerful, and follow the law. But without that? They might work, but it's equally like these rules would reinforce the dominance of these firms.
10. In other words, the core question is whether to support the first recommendation of the subcommittee report. That is to *break up these firms* to simplify them, which is a predicate to any non-authoritarian regulation. So this is the question.
11. Taking on the power of these firms is fundamentally about taking on power. There is no way around it. And frankly, the level of fear is pervasive, and it's just outrageous not to listen to businesspeople who speak up at great risk.
12. When the CEO of Mapbox says Google does a smash and grab and threatens his customers, some meek rules from the FTC on interoperability, when his system is already interoperable, won't matter. Just break up these firms already. End this reign of terror.

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More from @matthewstoller

13 Mar
1. There's an important debate w/in the Federalist Society over the conservative legal movement. The alliance between social conservatives and libertarians is breaking down. A few observations about this wonderful @jacklgoldsmith essay on the tension. libertiesjournal.com/now-showing/th…
2. My read, as an outsider to this debate, is that Scalia's view of Chevron and the regulatory state are a fulcrum for debate. Scalia expanded the power of the executive branch from the 1980s-2000. But bc of Obama's actions, libertarians are now fighting to overturn Chevron.
3. I'm not an expert here. But I suspect this debate skips over a key part of the conservative legal movement, which was Bork/Scalia's erosion of the anti-monopoly tradition in American law. Trinko - which got rid of Section 2 claims - is a useful and consequential decision here.
Read 16 tweets
12 Mar
House Antitrust Subcommittee is having a hearing now on big tech and the free press. Witnesses include @ggreenwald and Microsoft's Brad Smith. judiciary.house.gov/calendar/event…
Yeah this is probably true but also, so what?
Read 14 tweets
11 Mar
1. No Substack isn't a platform and no it's nothing like Google/FB/Spotify, etc. It could become like them, but right now it is simply a neutral service provider to content creators. It's like a magazine distributor.
2. There are few mechanisms for 'lock-in' for either users or writers. Users are using email, and it's as easy to receive email from anyone. Writers can port their lists if they want (though the financial data is probably a bit trickier).
3. There are no algorithms and there's no amplification. It's just a useful way for writers to communicate with readers, and to get paid from people who want to buy their content.
Read 6 tweets
11 Mar
1. Ok, I'm going to tell a quick story about how Republican Senator @SenToomey is sabotaging the GOP agenda on big tech and China. It's a subtle story, but here's how he's doing it. Last year, Trump's FTC filed suit to break up Facebook. But it wasn't just a GOP move.
2. In fact, GOP commissioners @FTCPhillips and @CSWilsonFTC voted *against* the suit. The Republican Chair Joe Simons, plus Democrats @chopraftc and @RKSlaughterFTC, voted for it. So it was 3-2 'break 'em up.' And Facebook then banned Trump and conservatives.
3. The suit is the result of FTC Commissioner Rohit Chopra's work, who has a track record of helping honest businesses. Example: Chopra stood for Made in USA labels over Chinese counterfeiters when his GOP colleagues did not. The GOP stance angered Trump. nytimes.com/2019/04/17/us/…
Read 13 tweets
5 Mar
I love Washington, DC, both living here and the symbols of democracy. I went around the city yesterday to look at fencing and security. We have ruined neighborhoods and the physical beauty of Congress and the White House.
After changing the name of the lovely park in front of the White House from Lafayette Park to Black Lives Matter Park, they closed off public access. And took all the BLM signs down.
I've lived in DC for fifteen years, and I've seen more and more of the Capitol closed off with barricades, fences, scanners, and men with guns. Now entire formerly open and lovely streets are blocked off, for *no reason* except no leader wants to overrule bureaucrats.
Read 4 tweets
4 Mar
1. So something extraordinary happened today on the anti-monopoly front. And not where you'd expect. Not in Congress. Or at the Federal level. Or in Europe.

But in Arizona.

Some legislators stood up to Apple and Google. And they won. This is the story.

mattstoller.substack.com/p/apple-threat…
2. Google and Apple are monopolies who control what is on your phone. Together they have 99% of the smartphone market. And they both charge high prices to app makers for the right to sell through their app stores. Apple made $64B from this tollbooth. cnbc.com/2021/01/08/app…
3. It’s basically impossible to sell mobile apps without going through the Apple/Google app stores, so they charge high prices - 30% of the take. Credit cards charge 2-3% to a merchant for access to a payment network. That's ten times Visa/MC, and Visa/MC are really greedy!
Read 20 tweets

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