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    Undertaxed and over here: why the UK welcomes US mega firms | Phillip Inman

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    Americans love Britain, and in many ways the British admire Americans, but the benefits of the relationship are becoming increasingly one-way.That’s the argument set out in a book published next month documenting how US companies have made inroads into the UK economy by exploiting a desperate need for investment, weak regulation and a public that seems oblivious to the cost to themselves and, ultimately, the economy.Clinton, Bush, Obama, Biden: whichever administration is pulling the levers, presidents pay lip service to a special relationship with the UK. Each one makes sure US companies leverage Washington’s power to gain entry, kill off local competition, secure monopoly control and run off with the profits largely tax-free.But UK companies that try to break into the US face huge legal and regulatory hurdles. It’s true that selling goods to America is a lucrative business. That’s not the same as setting up a US subsidiary in the US and going head-to-head with domestic corporations.Labour leaders fall into the trap of lauding energetic and profitable US companies as much as their cheering Tory counterparts do. Tony Blair and Gordon Brown were more ardent Americanophiles than most. And Keir Starmer shows every sign of rushing to Washington should he be elected, even if Trump is in charge – much as Theresa May did in 2017, before a humiliating return visit two years later.The new book is not an anti-American leftist call to arms of the kind published in the 1980s, when Margaret Thatcher’s admiration for Ronald Reagan generated tomes about the UK being the 51st state of America. Vassal State by Angus Hanton (Swift Press) examines for the first time the disparate data showing how much US companies have embedded themselves in the UK, capitalising on our willingness to pay them outlandish fees and subscriptions and afford them the hefty tax breaks needed to keep them in the UK.We know about the power and influence of Amazon, Apple, Meta/Facebook, Microsoft, Netflix and Alphabet/Google. Other high-profile names include online sellers eBay, Wayfair and Etsy, and streaming companies Sky, Disney and Apple TV.The internet’s cloud storage is mostly provided by American companies. All our data, bit by bit, is being collected by US firms, whether at the front end as we buy stuff using Amazon or travel using Google Maps, or at the back end, so to speak, as health data is scraped by US spy technology firm Palantir – which is run by Peter Thiel, the co-founder of another US web behemoth, PayPal.Hanton, a London-based entrepreneur who co-founded the Intergenerational Foundation charity, documents their rise, but also that of less well-known firms which have acquired the UK’s financial and physical plumbing.A classic example is WorldPay, a payments system used by tens of thousands of UK businesses to process card transactions. Once owned by NatWest, it was offloaded after the 2008 crash to US private equity firms Advent International and Bain Capital for £2bn.That was a European Commission order that the UK could have ignored but chose to obey. Advent and Bain floated the company on the London stock market for a handsome profit in 2015, but it soon went private again. Another Advent-owned firm, payments processing technology company Vantiv, paid $10.4bn for it in 2018, then Florida-based Fidelity National Information Services (FIS) paid $35bn in cash and shares for WorldPay in 2019.What ties these firms together is that they offer popular services that somehow we accept should be charged for, without any reference to the cost of production or market influence.It doesn’t happen on the continent in nearly the same way – and some would probably argue France, Germany, Spain and Italy are the poorer for it. WorldPay executives would no doubt say US companies are big investors, enhancing and expanding the UK businesses they buy, often with a long-term vision. Except that the vision includes domination and control of the economy, holding the government to ransom with threats of cutting investments if tax subsidies are not generous enough or tax rates low enough.Google’s soon-to-be-opened monster HQ in London’s King’s Cross is emblematic of the way the UK’s red-carpet treatment for investors has profited US companies and offset the threat of an exodus after Brexit. Google has found the UK, unlike the EU, willing to turn a blind eye to its monopolistic practices.That is great news for Brexiters. It’s not so good for the rest, who, wherever they turn, must pay for the services of an ever-expanding array of US mega-companies. More

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      Google accused of spending billions to block rivals as landmark trial continues

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      The court battle between the US justice department and Google has entered its second day, as the United States government seeks to prove that the tech behemoth illegally leveraged its power to maintain a monopoly over internet search engines. The trial is a major test of antitrust law and could have far-reaching implications for the tech industry and for how people engage with the internet.The question at the heart of the trial is whether Google’s place as the search engine for most Americans is the result of anti-competitive practices that gave internet users no other choice but to use its services.On the first day of the trial, attorneys for the justice department and the dozens of states that have joined in the suit accused Google of shutting out competition through billion-dollar agreements with companies such as Apple and Samsung.The justice department lawyer Kenneth Dintzer alleged Google spends $10bn a year in deals to ensure it is the default search engine on devices such as the iPhone, effectively blocking meaningful competition and positioning Google as the gatekeeper of the internet.“They knew these agreements crossed antitrust lines,” Dintzer said.Google’s opening statement gave a window into how the company and its lead attorney, John Schmidtlein, plan to defend against the accusations. Schmidtlein argued that Google has achieved its dominance over online search – the government estimates it holds about a 90% market share – because it is simply a better product than alternatives such as Microsoft’s Bing search engine. Consumers are free to switch default settings with “a few easy clicks” and use other search engines if they please, Schmidtlein told the court on Tuesday.The justice department called its first witness, Google’s chief economist Hal Varian. Over the course of two hours, Dintzer presented Varian with internal memos and documents dating back to the 2000s that showed him discussing how search defaults could be strategically important. One internal communication from Varian warned over antitrust issues that “we should be careful about what we say in both public and private”.On Wednesday, the justice department called the former Google executive Chris Barton, who had worked in partnerships and was an employee from 2004 to 2011. The department questioned Barton about the value of those partnerships in establishing dominance over the market.“As we recognized the opportunity for search on mobile phones, we began to build a product team,” Barton said, according to Reuters.As with the first day of the trial, the government has tried to show that Google saw the importance early on of making deals and securing its position as the default search engine on devices. The documents and witnesses it has brought up have so far been from over a decade ago, when the government says Google was first beginning to forge agreements that helped it monopolize search.The justice department has also alleged that Google was aware of possible antitrust violations and has consciously tried to obscure its actions. The government presented a document in court from an internal Google presentation on antitrust, which warned employees to avoid mentioning “market share” or “dominance”.The trial is set to last 10 weeks and feature numerous witnesses, as well as internal Google documents that the justice department hopes will show that monopolizing search has long been a top priority at the company. Judge Amit Mehta will decide the case, and there is no jury in the trial. More

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      Justice department alleges Google tried to ‘eliminate’ ad market rivals in lawsuit

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      Justice department alleges Google tried to ‘eliminate’ ad market rivals in lawsuitThe DoJ and eight states have filed a complaint against the tech company for violating antitrust laws The US justice department and eight states filed a lawsuit against Alphabet’s Google on Tuesday over allegations that the company abused its dominance of the digital advertising business, according to a court document.Google parent firm Alphabet to cut 12,000 jobs worldwideRead more“Google has used anticompetitive, exclusionary, and unlawful means to eliminate or severely diminish any threat to its dominance over digital advertising technologies,” the government said in its antitrust complaint.The government alleges that Google’s plan to assert dominance has been to “neutralize or eliminate” rivals through acquisitions and to force advertisers to use its products by making it difficult to use competitors’ products.The antitrust suit was filed in federal court in Alexandria, Virginia. Attorney general Merrick Garland said in a press conference Tuesday that Google’s dominance in the ad market means fewer publishers are able to offer their products without charging subscription or other fees, because they can’t rely on competition in the advertising market to keep ad prices low.As a result of Google’s dominance, he said, “website creators earn less and advertisers pay more”.The justice department asked the court to compel Google to divest its Google Ad manager suite, including its ad exchange AdX.The department’s suit accuses Google of unlawfully monopolizing the way ads are served online by excluding competitors. This includes its 2008 acquisition of DoubleClick, a dominant ad server, and subsequent rollout of technology that locks in the split-second bidding process for ads that get served on Web pages.Google’s ad manager lets large publishers who have significant direct sales manage their advertisements. The ad exchange, meanwhile, is a real-time marketplace to buy and sell online display ads.The lawsuit demands that Google break off three different businesses from its core business of search, YouTube and other products such as Gmail: the buying and selling of ads and ownership of the exchange where that business is transacted.Garland said that “for 15 years, Google has pursued a course of anti-competitive conduct” that has halted the rise of rival technologies and manipulated the mechanics of online ad auctions to force advertisers and publishers to use its tools.In so doing, he added, “Google has engaged in exclusionary conduct” that has “severely weakened”, if not destroyed competition in the ad tech industry.Alphabet Inc., Google’s parent company, said in a statement that the suit “doubles down on a flawed argument that would slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow”.The lawsuit is the second federal antitrust complaint filed against Google, alleging violations of antitrust law in how the company acquires or maintains its dominance. The justice department lawsuit filed against Google in 2020 focuses on its monopoly in search and is scheduled to go to trial in September.Eight states joined the department in the lawsuit filed on Tuesday, including Google’s home state of California. The states taking part in the suit include California, Virginia, Connecticut, Colorado, New Jersey, New York, Rhode Island and Tennessee.Dina Srinivasan, a Yale University fellow and adtech expert, said the lawsuit is “huge” because it aligns the entire nation – state and federal governments – in a bipartisan legal offensive against Google.Google shares were down 1.3% on the news.While Google remains the market leader by a long shot, its share of the US digital ad revenue has been eroding, falling to 28.8% last year from 36.7% in 2016, according to Insider Intelligence. Google’s advertising business is responsible for about 80% of its revenue.TopicsGoogleAlphabetUS politicsAdvertisingnewsReuse this content More

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      ‘Breeding grounds for radicalization’: Capitol attack panel signals loss of patience with big tech

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      ‘Breeding grounds for radicalization’: Capitol attack panel signals loss of patience with big techSubpoenas are an escalation in the committee’s efforts for answers as companies ignored information requests The House select committee investigating the January 6 insurrection at the Capitol has ordered several social media firms to hand over data relating to the attack, asignificant step toward transparency that could have broader privacy implications.Facebook whistleblower to claim company contributed to Capitol attackRead moreThe committee on Thursday subpoenaed Twitter, Meta, Alphabet and Reddit for private messages exchanged on the platforms about the attack aas well as information regarding moderation policies that allowed communities to remain online even as they incited violence in early 2021.Congressman Bennie Thompson, the chairman of the select committee, said the committee is seeking to answer two key questions: how the spread of misinformation contributed to the violent attack, and what steps social media companies took to prevent their platforms from “being breeding grounds for radicalizing people to violence”.The subpoenas mark an escalation in the committee’s efforts to get answers from the tech companies. Thompson added in his letter that the subpoenas came after “months of engagement” with the firms and that the four companies have so far ignored requests for information.“We cannot allow our important work to be delayed any further,” he said.The panel in August asked 15 tech companies, including the four subpoenaed on Thursday as well as TikTok, Snapchat, Parler and 4chan, for records related to the riot.In letters sent this week the tech firms, Thompson lamented their lack of response. In a letter to Meta CEO Mark Zuckerberg, Thompson said that “despite repeated and specific requests for documents” related to Facebook’s practices on election misinformation and violent content, the committee had still not received these materials.Following the January 6 attack, social media platforms have been scrutinized for amplifying calls to violence, spreading misinformation and serving as an organizing tool for the rioters.Last March, lawmakers grilled the CEOs of Google, Twitter and Facebook about the platforms’ role in the Capitol riot. And in the months since, the major platforms have all announced initiatives to curb the spread of misinformation through their products.But still, much about the content moderation policies of major tech firms remains black box, with executives slow to reveal details of how misinformation and hate speech is moderated and how many resources are dedicated to mitigating such issues. Now, increased transparency could come by means of subpoena.For lawmakers, the problem came even more acutely into focus with papers leaked by whistleblower Frances Haugen in October 2021, which showed how Facebook failed to enforce policies that would rein in hate speech because they were detrimental to its bottom line. Speaking to Congress, Haugen called for more transparency from Facebook and other companies, including an independent oversight board.In a letter to Zuckerberg, the select committee cited revelations from Haugen, requesting access to the company’s internal analyses of the spread of misinformation and calls to violence relating to the 2020 election.In particular, the committee requested more information on the “Stop the Steal” movement and how it was regulated. A “Stop the Steal” Facebook group amassed hundreds of thousands of members and was used to coordinate some of the actions on January 6. While Facebook eventually took it down, other related pages stayed online, said Imran Ahmed, CEO of the Center for Countering Digital Hate.“It is absolutely crucial to understand the decision making process that led to them to leave those pages online – how they executed enforcement of their policies against violence, encouraging violence, intimidation, extremism and hate.”Similarly, Reddit has been requested to provide information on its community r/The_Donald, which was used to plan the January 6 action before it was banned weeks later on 27 January.Lawmakers were also seeking materials from Alphabet, the parent company of YouTube, because the video platform hosted significant communications by key players in the Capitol attack, including Trump’s former chief strategist Steve Bannon and rioters livestreaming their movements on January 6.Activists say the need to hold companies accountable for how their policies contributed to the Capitol riots should be held in balance with civil rights and privacy protections.The subpoenas may bring up privacy concerns, said Evan Greer, deputy director of digital rights group Fight for the Future. “Forcing companies to hand over private messages of its users could have major privacy implications,” Greer said.“It’s essential to remember that government surveillance and demands for data from private companies are primarily weaponized against marginalized communities,” they said. “The white supremacists who stormed the Capitol deserve to be held accountable, but we should never cheer on expansions of surveillance or government overreach.”Twitter, Meta, Alphabet and Reddit did not immediately respond to the Guardian’s request for comment. 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      Capitol attack panel subpoenas Google, Facebook and Twitter for digital records

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      Capitol attack panel subpoenas Google, Facebook and Twitter for digital recordsSelect committee seeks records related to January 6 attackMove suggests panel is ramping up inquiry of social media posts The House select committee investigating the Capitol attack subpoenaed Twitter, Meta, Alphabet and Reddit on Thursday for records related to the 6 January insurrection, as it seeks to review data that could potentially incriminate the Trump White House.Facebook is part of Meta and Google is part of Alphabet.The move by the select committee suggests the panel is ramping up its examination of social media posts and messages that could provide evidentiary evidence as to who might have been in contact with the Trump White House around 6 January, one source said.Congressman Bennie Thompson, the chairman of the select committee, said in a statement that he authorized the four subpoenas since those platforms were used to communicate plans about the Capitol attack, and yet the social media companies ignored earlier requests.The subpoenas to the four social media companies were the last straw for the select committee after repeated engagements with the platforms went unheeded, Thompson said in letters that amounted to stinging rebukes over the platforms’ lack of cooperation.Thompson said in the subpoena letter to Twitter that the select committee was interested in obtaining key documents House investigators suspect the company is withholding that could shed light on how users used the platform to plan and execute the Capitol attack.The chairman said the select committee was interested in records from Reddit, since the “r/The_Donald” subreddit that eventually migrated to a website of the same name hosted significant discussion and planning related to the Capitol attack.Thompson said House investigators were seeking materials from Alphabet, the parent company of YouTube, which was a platform for significant communications by its users who played key roles in the Capitol attack.The select committee has been examining digital fingerprints left by the Trump White House and other individuals connected to the Capitol attack since the outset of the investigation, on everything from posts that show geolocations to metadata, the source said.To that end, the select committee issued data preservation requests to 35 telecom and social media companies in August, demanding that they save the materials in the event the panel’s technical team required their release, the source said.The Guardian first reported that month that the select committee, among other individuals, had requested the telecom and social media firms preserve the records of the former Trump White House chief of staff Mark Meadows in addition to a dozen House Republicans.The select committee gave the social media companies a 27 January deadline to comply with the subpoenas, but it was not clear whether the organizations would comply. A spokesperson for Twitter and Meta did not immediately respond to requests for comment.Congressman Kevin McCarthy, the Republican House minority leader who refused a request for cooperation late on Wednesday by the select committee, has previously threatened telecom and social media companies if they comply with the bipartisan panel’s investigation.“If these companies comply with the Democrat order to turn over private information, they are in violation of federal law,” McCarthy said at the time in August. “A Republican majority will not forget and will stand with Americans to hold them fully accountable under the law.”TopicsUS Capitol attackFacebookGoogleUS politicsSocial networkingAlphabetnewsReuse this content More

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      Is Biden’s appointment of a pioneering young lawyer bad news for big tech? | John Naughton

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      A flashback: it’s Wednesday 29 July 2020. I’m sitting glued to the US TV network C-Span, which is relaying – live – a hearing of the House of Representatives subcommittee on antitrust, commercial and administrative law. The hearing is being held following the publication of a sprawling report of a year-long investigation into the market dominance of Amazon, Apple, Facebook and Google.Arrayed on big screens before the members of the subcommittee are the four bosses of the aforementioned tech giants: Amazon’s Jeff Bezos, then midway through his Star Trek makeover; Tim Cook of Apple, looking like the clean-living lad who never understood the locker-room jokes; Facebook’s Mark Zuckerberg, wearing his trademark glued-on hairdo; and the Google boss, Sundar Pichai, every inch the scholarship boy who can’t understand why he’s been arrested by the Feds. And on the vast mahogany bench towering above these screened moguls sits David Cicilline, subcommittee chairman and the politician who has overseen the investigation.To be honest, I was watching out of duty and with low expectations. All the previous congressional interrogations of Zuckerberg and co had alternated between political grandstanding and farce. I expected much the same from this encounter. And then I noticed a young woman wearing a black mask standing behind Cicilline. She looked vaguely familiar, but it took me a few moments before I twigged that she was Lina Khan. At which point I sat up and started taking notes.I had been following her for years, ever since a paper she had published as a graduate student in the Yale Law Journal in January 2017. The title of the paper – Amazon’s Antitrust Paradox – signalled that there was something radical coming up, because since the mid-1970s US antitrust philosophy had been shaped by a landmark book by another lawyer, Robert Bork. Its title was The Antitrust Paradox and it argued that the prime focus of action against monopolies should not be corporate power, per se, but consumer harm as measured by unreasonably high prices. And since many of the products and services offered by the tech giants were “free” to their users they could hardly be accused of this; their wielding of monopoly power should not therefore be penalised by the state, for doing so would be tantamount to “penalising excellence”. Thus was shaped the legal doctrine that allowed a small number of tech companies to acquire immense power without being unduly troubled by legislators.This was the doctrine that Khan set out to demolish in her paper. She argued that Amazon was a dangerous monopoly that charged unsustainably low prices because the company knew that its shareholders would allow it to lose money for longer than its competitors. And it was also able to operate a “marketplace” that competed with the businesses that relied on it to reach customers, while amassing data on them that further entrenched its advantages. In other words, it wielded significant power for which there was no real redress.Khan’s paper lit a fuse that’s been fizzing ever since. It informed the Cicilline investigation and the subsequent report. And it’s what underpinned four of the five new bills that were unveiled last week, each one co-sponsored by Republican as well as Democratic politicians and each one targeted at monopolistic abuses identified in the report. The “Cicilline Salvo” is how the incomparable tech analyst Ben Thompson summarises them. The American innovation and choice online bill forbids platforms from giving advantages to their own products and services on marketplaces that they operate. The platform competition and opportunity bill outlaws pre-emptive acquisitions by tech giants of startups that might threaten their dominance (such as Facebook acquiring Instagram and WhatsApp, for instance). The ending platform monopolies bill bans platforms from owning any product or service that rests on top of its platform and competes with third parties in any way. And the augmenting compatibility and competition by enabling service switching bill requires tech platforms to make it easy for users to switch platforms (and take their data and social graph with them); in other words, it imposes on platforms what many jurisdictions now enforce on mobile phone operators, energy companies and other businesses.Of course, there’s many a slip ’twixt drafting and the statute book, but these are very significant pieces of legislation that go some way towards bringing tech companies under democratic control. And, to cap it all, last week also saw the announcement that Khan was to become chair of the Federal Trade Commission, the agency that, along with the US Department of Justice, has the legal muscle to enforce compliance with whatever these new laws stipulate.Which leaves us with two reflections. One is, as David Runciman pointed out in The Confidence Trap, his landmark study of the recent history of democracy, that while democracies can take a long time to awaken from their slumbers, once aroused they can be very effective. The other is a confirmation of the power of ideas, even those of a young graduate student, to change history.What I’ve been readingSituation vacant On Algorithmic Communism is a long, thoughtful review by Ian Lorrie in the LA Review of Books of Nick Srnicek’s and Alex Williams’s book, Inventing the Future, about a world without work.What’s in a phrase?There Is Nothing so Deep as the Gleaming Surface of the Aphorism is a nice – aphoristic – essay by Noreen Masud.Net costsThe Cost of Cloud: A Trillion-Dollar Paradox is a perceptive piece by Sarah Wang and Martin Casado on the expensive technology on which our networked world now depends. More

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      Antitrust: Hawley and Klobuchar on the big tech battles to come

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      Antitrust is hot. In February, the Minnesota senator Amy Klobuchar introduced the Competition and Antitrust Law Enforcement Reform Act of 2021. Weeks later, the Missouri senator Josh Hawley proposed the Trust-Busting for the Twenty-First Century Act. Both bills are pending before the Senate judiciary committee.Hawley and Klobuchar have both published books. Hawley offers The Tyranny of Big Tech, and Klobuchar Antitrust. There is plenty of overlap but the substantive and stylistic differences are glaring.Hawley takes pride in owning the libs. Klobuchar criticizes the Trump administration’s lack of antitrust enforcement. His book is barbed. Hers methodical.On 6 January, Hawley gave a clench-fisted salute to pro-Trump militants and voted against certifying the 2020 presidential election. On the page, he doubles down.Two weeks after the Capitol attack, Klobuchar told the presidential inauguration: “This is the day our democracy picks itself up, brushes off the dust and does what America always does.” She remains angry with Hawley and “Flyin’” Ted Cruz for the insurrection and its aftermath.Playing to type, Hawley has also provided the sole vote against a bill to crack down on anti-Asian hate crime and opposed renaming military bases named for Confederate generals. Roy Blunt, Missouri’s senior senator and the No 4 member of GOP Senate leadership, parted ways with Hawley on both. In the civil war, Missouri was a border state. A century and a half later, it looks like Hawley has picked the losing side.In his book, he upbraids corporate America, “woke capitalism”, Amazon, Google and Facebook. He demands that Google “be forced to give up YouTube and its control of the digital advertising market”.He would also have Facebook “lose” Instagram and WhatsApp, and accuses Amazon of destroying Parler, the conservative alternative to Twitter funded by Rebekah Mercer, a Hawley donor along with her father, Robert Mercer and other Trump acolytes.Hawley’s embrace of antipathy toward big business – even that in which he invests – is not exactly new.In 2008 he published a biography of Theodore Roosevelt, subtitled Preacher of Righteousness and approving of the 26th president’s relentless support for the little guy.Almost a decade later, as Missouri attorney general, Hawley launched an antitrust investigation of Google. Shortly after that, as a Senate candidate, he told Bloomberg News: “We need to have a conversation in Missouri, and as a country, about the concentration of economic power.”But Hawley is buffeted by contradictions. He has for example feted Robert Bork as a conservative martyr, even as Bork’s legal writings have served as intellectual jet fuel for those developments in the marketplace Hawley professes to abhor.The Tyranny of Big Tech makes no mention of the professor who wrote an influential anti-antitrust book, The Antitrust Paradox, in 1978, nine years before he was blocked from the supreme court.Klobuchar, by contrast, gives Bork plenty of face time.“For Bork,” she writes, “the accumulation of wealth in the hands of a few is not a relevant consideration for antitrust law.”Bork had issues with civil rights too. In 1963, when Jim Crow was still in full force, he branded what would become the Civil Rights Act of 1964 “legislation by which the morals of the majority are self-righteously imposed upon a minority”.In The Tyranny of Big Tech, Hawley also blasts corporate abuse of personal data and data mining – all while he looks to Peter Thiel of Palantir for donor dollars.Left unstated is that Palantir was embroiled in the Cambridge Analytica data scandal. Cambridge Analytica was owned by the Mercer family and Thiel was an early funder and board member of Facebook. The circle is complete.Hawley’s book can be viewed as plutocrat-populism in print. Tucker Carlson’s praise is blurbed on the jacket. Inside, Hawley defends Rupert Murdoch’s Fox News from purported predations by Mark Zuckerberg’s Facebook. Both Murdoch and Zuckerberg are billionaires many times over.Hawley is on stronger ground when he revisits the nexus between the Obama administration, Hillary Clinton’s campaign and Google. Eric Schmidt, then head of the company, was Obama’s chief corporate ally. On election night 2016, Schmidt, wore a Clinton staff badge, having spent months advising her campaign.In her book, Klobuchar furnishes an overview of the evolution of US anti-monopoly law and a call for rebalancing the relationship between capital and labor. She condemns corporate consolidation and wealth concentration, and views lax antitrust enforcement as antithetical to democracy.In a footnote, she commends Hawley for addressing the “turf wars” between the Department of Justice and the Federal Trade Commission, and their negative impact on antitrust enforcement. Unlike Hawley, however, Klobuchar vehemently disapproves of the supreme court’s Citizens United decision and characterizes it as opening “the floodgates to dark money in our politics”.In 2016, Dave Bossie, president of Citizens United, wrote an op-ed titled: “Josh Hawley for [Missouri] Attorney General”. In his maiden Senate race, Hawley’s campaign received $10,000 from the Citizens United Political Victory Fund.Unfortunately, Klobuchar goes the extra mile and calls for a constitutional amendment to overturn that decision. Her would-be cure is worse than the disease – an attack on free speech itself.The proposed amendment would expressly confer upon “Congress and the states” broad power to curtail campaign fundraising and spending. It also provides that “nothing in this article shall be construed to grant Congress or the states the power to abridge the freedom of the press”.Not so curiously, it is silent about “abridging the freedom of speech”, an existing constitutional protection. Media barons rejoice – all others start sweating.In 2020, Klobuchar came up way short in her quest for the Democratic presidential nomination. Now, she chairs the Senate’s antitrust subcommittee, where Hawley is a member.Both senators were law review editors: she at the University of Chicago, he at Yale. If Hawley has written a sort of campaign manifesto for the Republican presidential primary in 2024, Klobuchar’s book reads at times like an application for supreme court justice. It contains hundreds of pages of footnotes and pays repeated tribute to the late justice Louis Brandeis.Klobuchar also heaps praise on Stephen Breyer, a member of the court appointed by Bill Clinton and a former Harvard Law professor who in 1982 authored Regulation and Its Reform, a counter to Bork and the “Chicago School”.Klobuchar extends an array of “thank yous”. There is one for Jake Sullivan, her former counsel, now Joe Biden’s national security adviser; another for Matt Stoller, a former staffer to Bernie Sanders on the Senate budget committee and a sometime Guardian contributor; and another for Paul Krugman of the New York Times. All three come with definite viewpoints and are strategically placed.Increased antitrust enforcement by the DoJ, the FTC and the states appears to be more likely than wholesale legislative change. A government antitrust case against Google proceeds. Furthermore, Biden has already appointed two critics of big tech to key slots at the White House and the FTC. Who will lead DoJ’s antitrust division is an open question. Finding a suitable non-conflicted pick appears difficult.Klobuchar and Hawley will be heard from. Their books matter. More

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      Donald Trump being banned from social media is a dangerous distraction | Matt Stoller and Sarah Miller

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      In the wake of Donald Trump’s instigation of a shocking attack on the US Capitol, it’s easy to demand that Trump be barred from social media.“These corporations should announce a permanent ban of his accounts,” said Representative Bennie Thompson, chair of the House homeland security committee. “Nothing short of that will meet this moment.”Indeed, Facebook, Google and Twitter have taken action, suspending the president from their platforms or removing videos.But whatever one thinks of stopping Trump fomenting violence by limiting his ability to communicate, the ability of democratically unaccountable monopolies with extraordinary control over communications infrastructure, like Facebook and Google, YouTube’s parent company, to silence political speech is exceptionally dangerous. It also sidesteps the underlying problem – that it’s their dominance and business model that promotes conspiratorial, fake and violent content to millions.Policymakers must recognize the choices that enabled the rise of these toxic but wildly lucrative business modelsTrump is not the first demagogue America has seen and he won’t be the last. But his power is amplified by a corrupted information ecosystem created by Google, Facebook and media barons like Rupert Murdoch. Those who came to the Capitol to riot sincerely believed they were stopping the subversion of American democracy because an entire information ecosystem encouraged them to discount any political or media institution that told them otherwise. That ecosystem of disinformation, extremism, rage and bigotry won’t go away by banning Trump or his supporters. That’s because the driving force behind it is profit: Facebook and Google make billions by fostering it.To understand why, policymakers must recognize the choices that enabled the rise of these toxic but wildly lucrative business models. Traditionally, US media regulation encouraged localized press and a neutral system of information distribution, starting with the Post Office in 1791. But beginning in the 1970s, policymakers changed their philosophy to encourage consolidation.They altered rules around advertising, publishing and information distribution markets, weakening antitrust laws, killing important protections like the Fairness Doctrine and passing the Telecommunications Act of 1996, which lifted local media ownership caps and unleashed a wave of mergers and acquisitions. They also enacted Section 230 of the Communications Decency Act, a provision that today allows tech platforms to escape liability for illegal content they help shape and monetize. And over the last 20 years, policymakers enabled Google and Facebook to roll up the entire digital advertising and communication space by permitting hundreds of mergers, without a single challenge.The net effect is that two giant corporations, Facebook and Google, dominate online communications, profiting by selling advertising against cheaply produced, addictive clickbait and conspiratorial content. Making matters worse, in seeking ad money and quick profits, Facebook and Google, as well as private equity, have killed the pro-social institutions on which we rely, such as local newspapers, by redirecting advertising revenue to themselves. More than one-fourth of American newspapers have disappeared in the last 15 years, with many of those left being hollowed out as “ghost papers” with no news-gathering ability.Filling their place are conspiracy theories like QAnon, which these platforms amplify to turn a handsome profit. Survey results show Google provided ad services to 86% of sites carrying coronavirus conspiracies.This isn’t a uniquely American problem: Facebook, with its addictive user interface designed to maximize engagement, has helped foster deadly mob attacks in India, Sri Lanka and Myanmar and bent to the will of autocrats elsewhere. It’s not just the dramatic, either. More than three in five Americans feel lonely, and there is evidence that social media usage isolates and alienates us, changing our brains and drawing some to political extremism.The problem, in other words, won’t go away with banning Trump, because the problem is that the steady supply of toxic, addictive content that keeps eyeballs on ads is at the heart of these monopolies’ business models. Trump is far from the only supplier of that content now, and there’s no doubt others will rise up to replace him, with a boost from Facebook and Google.The Biden administration and the new Congress can fix these twin problems of monopoly power and profit motive by returning to a traditional policy framework of fair competition, neutral communication networks and business models that finance local news and a diversity of voices.For the tech platforms, Congress and agencies like the Federal Trade Commission have the authority to ban targeted advertising, much in the same way Verizon, for example, is prohibited by law from listening to your private calls and using that information to directly or indirectly advertise to you based on that surveillance.Breaking up these goliaths and prohibiting mergers by dominant firms would force them to compete over users based on data privacy and safety, as Facebook once had to do when it was in a competitive social networking world in the early 2000s. And imposing neutrality, like non-discrimination rules and interoperability requirements, would end the tyranny of algorithms that push us towards incendiary content.The good news is Republican and Democratic attorneys general in 48 states have filed historic antitrust suits against Google and Facebook, seeking to break them up, and the Biden administration and many in Congress seem wide awake to the pernicious role of social media platforms, particularly Facebook and Google, in the fraying of America’s social fabric.But until political leaders recognize that these tech barons make their billions by selling tickets to the end of American democracy, it will continue to creep ever closer. Seeing Trump booted off Facebook may be emotionally satisfying and even potentially prevent dangerous behavior in the short term. But only a wholesale restructuring of our online communications infrastructure can preserve democracy. More

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      Trump attempted a coup: he must be removed while those who aided him pay | Robert Reich

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      A swift impeachment is imperative but from Rudy Giuliani and Don Jr to Fox News and Twitter, the president did not act aloneInsurrection: the day terror came to the US CapitolCall me old-fashioned, but when the president of the United States encourages armed insurgents to breach the Capitol and threaten the physical safety of Congress, in order to remain in power, I call it an attempted coup. Related: Saving Justice review: how Trump’s Eye of Sauron burned everything – including James Comey Continue reading… More