1. This is a holy $&$#& story of corruption and threats from Amazon, where their head lobbyist was caught on tape. First, the small stuff. It shows Amazon regularly buys off academics, in this case an antitrust professor named Daniel Sokol.
2. The more important thing he's caught saying is that if Canada strengthens its antitrust laws, Amazon will *pull out of Canada.*
3. Tens of thousands of merchants in Canada depend on Amazon, so do millions of consumers. It is core infrastructure. So when top Canadian exec James Maunder says it will leave Canada, it is a 'nice retail sector, shame if anything happens to it' moment.
It's Amazon's moment.
4. But this isn't just about Canada. Amazon is threatening THE UNITED STATES OF AMERICA. Here's the quote:
“If Canada were to adopt U.S.-style antitrust legislation—the six bills currently in Congress—we’ve said it in the U.S., we’d have to shut down Marketplace."
5. This is not the first time we've seen big tech firms - who are core infrastructure - threaten entire countries. Google did it to Turkey. mattstoller.substack.com/p/googles-dang…
6. Facebook intentionally sabotaged Australian media and communications in response to a proposed antitrust law to force the firm to pay for news. wsj.com/articles/faceb…
7. Google threatened to remove its search engine from Australia for the same reason. bbc.com/news/world-aus…
8. Google and Apple created contact tracing during the start of the Covid pandemic, and refused to work with public health authorities all over the world on design choices.
9. This isn't a 'big companies lobby a lot' corruption story. It's about firms who, because of their control of key infrastructure, are *rivals to democratic government.* Amazon isn't just lobbying Canada, it is openly saying Canadians are *not allowed to govern themselves.*
10. Now, these kinds of threats are often a bluff. Not always, especially for smaller countries who are not rich and English-speaking. But Google and Facebook ultimately caved to, for instance, Australia. And their news are flourishing. mattstoller.substack.com/p/should-we-sa…
11. Big tech are not like other businesses. They rival sovereign nations. It's why Zuckerberg tried to start a currency - stopped by Congress - and a Supreme Court for content moderation. It's why they are right now trying to defund the antitrust police. mattstoller.substack.com/p/big-tech-tri…
12. We must break their power. We must shrink them down so they can be contained within a democracy. And we can. Ultimately, our national governments are immensely strong, tied down only by our lack of imagination and confidence. It's time to learn how to be a free people again.
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“Thiel said Republicans needed to be more than just the party that doesn't like "woke stuff." He argued for Republicans to build a lasting coalition, the party needed to figure out a way to deliver broad-based economic growth that benefited all Americans.” foxnews.com/politics/gop-m…
The right is trapped in a doom loop. They can win elections but they have shown limited ability to move beyond ‘progressives are evil monsters’ which is not fundamentally a governing message. Without a rival vision Democrats set the terms of debate.
There is no governing without working with the populist left and repudiating the attack on the administrative state. Masters wants to govern but that’s the obstacle.
1. There's something missing from the left's view of finance. Since the Fed started tightening financial conditions, housing prices have begun coming down and now rent increases are slowing. twincities.com/2022/09/07/st-…
2. Those prices aren't coming down because people have lost their jobs, but because those sectors are heavily financialized and the Fed's loose conditions boosted asset prices. Yet the left has largely supported the Fed's choice to boost those prices.
3. Loose financial conditions are a *deliberate* strategy by the Fed to boost the fortunes of the wealthy. Here's Fed Vice Chair Don Kohn saying that years ago, but it hasn't changed. federalreserve.gov/monetarypolicy…
The answer is no, they won't. We need rules to stop targeted ads, and lots of antitrust law to break up big tech. This is one piece. And in Australia, the #JCPA-like law forced big tech to bargain fairly with the news and now journalist there is flourishing.
What is actually wild is how @mattfwood and his colleagues are weighing in on a bill about advertising when they have literally no idea how any of these markets work, and simply oppose for-profit news on principle.
And look, I don't mind those who oppose for-profit news and wish that America only had a public interest news ecosystem. I disagree with that premise. But if that's what you think, don't attack a bill that will redress advertising bargaining imbalances under false pretenses.
The Senate is now marking up the bill that would let publishers band together and bargain with big tech. Live-streamed here. #jcpajudiciary.senate.gov/meetings/09/08…
"Social media has lowered the cost of being an a-hole." - Senator John Kennedy
As one would expect, @SenMikeLee opposes the #JCPA. He says that the 'politicization of news' has already happened because of the introduction of the bill.🙄
Most people don't understand the news business model, so they don't recognize that there's a massive bargaining imbalance between publishers and Google. Look at this, Google won't negotiate to pay enough for the news. wsj.com/articles/googl…
One of the false claims about the new bargaining bill is that it would change copyright law and require a tax for linking to the news. But Google is willing to pay to feature news articles. Just not very much. Copyright is a red herring.
The reason I'm so excised about the bill that would force Google to bargain with publishers is because the bad faith criticisms illustrate exactly what I've claimed for a long time. Certain parts of the left are pro-monopoly and pro-concentration. mattstoller.substack.com/p/should-we-sa…
I wrote up how Australia is saving its newspapers, and why a bill to do the same thing in the U.S. is so controversial on the left. mattstoller.substack.com/p/should-we-sa…
I really enjoyed writing this piece, because it gets into some important and nitty gritty ideological disagreements within the left on the problem of monopoly. mattstoller.substack.com/p/should-we-sa…
Populists want to promote lots of news diversity by attacking Google's consolidation of ad markets. But for some groups, like Free Press, Google's consolidation of ad markets is a *solution* not a problem. It solves what they really dislike, which is a for-profit media.