More stories

  • in

    The Other Side of the Indian Farmers’ Protests

    In November 2020, the Friedrich Ebert Foundation published an article by Paul Nemitz and Matthias Pfeffer on the threat to digital sovereignty in Europe. They called attention to the need in Europe for “decentralised digital technologies” to combat a trend they see as essential for preserving “a flourishing medium-sized business sector, growing tax revenues, rising prosperity, a functioning democracy and rule of law.” 

    The authors felt encouraged by the fact that the European Council was at last looking at challenging the US tech platforms that dominate global cyberspace: Google, Amazon, Facebook, Apple and Microsoft. Europe appears ready to draft laws that would impose targeted regulation strategies different from those that apply to “small and medium-sized actors, or sectoral actors generally.”

    Indian Farmer Protests Explained

    READ MORE

    There are multiple reasons for such a move, which will inevitably be attacked by the corporations as violating the sacrosanct principle of free trade. Nemitz and Pfeffer recognize the complexity of the implicit goal, to ensure “strategic autonomy while preserving an open economy.” Besides the threat to traditional businesses incapable of competing with the platforms, they cite the fact that “unregulated digitalisation of the public sphere has already endangered the systemic role of the media in two respects” to the extent that 80% of “online advertising revenues today flow to just two corporations: Google and Facebook.” This threatens the viability of “costly professional journalism that is vital for democracy.”

    Europe is struggling to find a solution. In the context of the farmers’ protests in India, the Joint Action Committee Against Foreign Retail and E-commerce (JACAFRE) recently took an emphatic stand on the same subject by publishing an open letter addressed to Prime Minister Narendra Modi. In this case, the designated culprits are the US powerhouses of retail commerce, Amazon and Walmart, but the authors include what they see as a Quisling Indian company: the mega-corporation, Reliance Industries.

    The giant conglomerate claims to be “committed to innovation-led, exponential growth in the areas of hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and telecommunications.” JACAFRE suspects it may also be committed to the idea of monopolistic control. It complains that Reliance’s propensity for establishing partnerships with Facebook and Google is akin to letting the fox in the henhouse. This has less to do with the platforms’ direct action than the coercive power their ever-increasingly possession and control of data represents. “If the new farm laws are closely examined,” the JACAFE’s authors claim, “it will be evident that unregulated digitalisation is a very important aspect of them.”

    Today’s Daily Devil’s Dictionary definition:

    Unregulated digitalization:

    A pandemic that grew slowly in the first two decades of the 21st century with the effect of undermining most human economic activities, personal relationships and even mental equilibrium

    Contextual Note

    Three years ago, Walmart purchased the Indian retailer Flipkart. Interviewed at the time, Parminder Jeet Singh, the executive director of IT for Change, complained that the data controlled by e-commerce companies is no longer limited to patterns of consumption but also extends to production and logistics. “They know everything, who needs it, when they need it, who should produce it, who should move it, when it should be moved, the complete control of the data of the whole system,” he said. That capacity is more than invasive. It is tantamount to omniscient and undetectable industrial spying combined with forms of social control that are potentially as powerful as China’s much decried social credit system.

    Embed from Getty Images

    In 2018, Singh appeared to worry more about Walmart than Facebook or Amazon, because it represents the physical economy. The day US companies dominate both the data and the physical resources of the Indian economy, Singh believes it would “game over” for Indian economic independence. He framed it in these terms: “If these two companies become a duopoly in the e-commerce sector, it’s actually a duopoly over the whole economy.” 

    On the positive side, he insisted that, contrary to many other countries, India has the “digitally industrialized” culture that would allow it not only to resist the domination of a US-based global company, but also permit it to succeed in building a native equivalent. He viewed Flipkart before Walmart’s takeover as a successful Indian company that had no need of a monopolistic US company to ensure its future growth. 

    Historical Note

    Fair Observer’s founder, CEO and editor-in-chief, Atul Singh, recently collaborated with analyst Manu Sharma on an article debunking the simplistic view shared across international media that persists in painting India’s protesting farmers as a David challenging a globalized Goliath insidiously promoted by Narendra Modi’s government. The Western media’s narrative puts the farmers in the role of resistance heroes against a new form of market-based tyranny.

    But as Singh and Sharma point out, this requires ignoring history and refusing to recognize the pressing need to move away from a “Soviet-inspired model” that ended up creating pockets of privilege and artificial dependence. These relics of India’s post-independence past became obstacles not only to productivity but to justice as well, to the extent that the existing system favored those who had learned to successfully exploit it.

    Singh and Sharma highlight the incoherence of a system that risks provoking deeper crises. Does that mean that Modi’s proposed reform is viable and without risk? The two authors acknowledge the very real fear farmers feel “that big private players will offer good money to farmers in the beginning, kill off their competition and then pay little for agricultural produce.” They realistically concede that, once in place, “India’s agricultural reforms will have intended and unintended consequences, both positive and negative.”

    But there may be more to the story. From the JACAFE’s perspective, the farmers’ instincts are correct. Their fear of the big players leveraging their clout in the traditional marketplace by exercising discretionary control of production and distribution becomes exponentially greater when considering that, thanks to their mastery of data, their control is not limited to the commodities themselves. It extends to all the data associated not only with the modes and means of production, but also with the channels of distribution and even habits of consumption. That explains why the JACAFE sees the 2018 takeover of Flipkart by Walmart as particularly foreboding.

    This dimension of the issue should also help us to understand why Prime Minister Modi has recently been playing cat and mouse with both Jeff Bezos of Amazon and Mark Zuckerberg of Facebook. At some point, the purely rhetorical game that even a mouse with a 56-inch chest can play while dodging the bite of a pair of voracious and muscular cats (Amazon and Walmart) has its limits. India is faced with a major quandary. It needs to accelerate its development of domestic resources in a manner that allows it to control the future economic consequences for its population but must, at the same time, look abroad for the investment that will fund such endeavors.

    .custom-post-from {float:right; margin: 0 10px 10px; max-width: 50%; width: 100%; text-align: center; background: #000000; color: #ffffff; padding: 15px 0 30px; }
    .custom-post-from img { max-width: 85% !important; margin: 15px auto; filter: brightness(0) invert(1); }
    .custom-post-from .cpf-h4 { font-size: 18px; margin-bottom: 15px; }
    .custom-post-from .cpf-h5 { font-size: 14px; letter-spacing: 1px; line-height: 22px; margin-bottom: 15px; }
    .custom-post-from input[type=”email”] { font-size: 14px; color: #000 !important; width: 240px; margin: auto; height: 30px; box-shadow:none; border: none; padding: 0 10px; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-pen-icon.svg”); background-repeat: no-repeat; background-position: center right 14px; background-size:14px;}
    .custom-post-from input[type=”submit”] { font-weight: normal; margin: 15px auto; height: 30px; box-shadow: none; border: none; padding: 0 10px 0 35px; background-color: #1878f3; color: #ffffff; border-radius: 4px; display: inline-block; background-image: url(“https://www.fairobserver.com/wp-content/plugins/moosend_form/cpf-email-icon.svg”); background-repeat: no-repeat; background-position: 14px center; background-size: 14px; }

    .custom-post-from .cpf-checkbox { width: 90%; margin: auto; position: relative; display: flex; flex-wrap: wrap;}
    .custom-post-from .cpf-checkbox label { text-align: left; display: block; padding-left: 32px; margin-bottom: 0; cursor: pointer; font-size: 11px; line-height: 18px;
    -webkit-user-select: none;
    -moz-user-select: none;
    -ms-user-select: none;
    user-select: none;
    order: 1;
    color: #ffffff;
    font-weight: normal;}
    .custom-post-from .cpf-checkbox label a { color: #ffffff; text-decoration: underline; }
    .custom-post-from .cpf-checkbox input { position: absolute; opacity: 0; cursor: pointer; height: 100%; width: 24%; left: 0;
    right: 0; margin: 0; z-index: 3; order: 2;}
    .custom-post-from .cpf-checkbox input ~ label:before { content: “f0c8”; font-family: Font Awesome 5 Free; color: #eee; font-size: 24px; position: absolute; left: 0; top: 0; line-height: 28px; color: #ffffff; width: 20px; height: 20px; margin-top: 5px; z-index: 2; }
    .custom-post-from .cpf-checkbox input:checked ~ label:before { content: “f14a”; font-weight: 600; color: #2196F3; }
    .custom-post-from .cpf-checkbox input:checked ~ label:after { content: “”; }
    .custom-post-from .cpf-checkbox input ~ label:after { position: absolute; left: 2px; width: 18px; height: 18px; margin-top: 10px; background: #ffffff; top: 10px; margin: auto; z-index: 1; }
    .custom-post-from .error{ display: block; color: #ff6461; order: 3 !important;}

    In a recent article on foreign direct investment (FDI) and foreign portfolio investment (FPI) in India, Singh and Sharma noted that the recent flood of cash can be attributed to the fact that “corporations from the US and the Gulf have bought big stakes in Reliance Industries, India’s biggest conglomerate. They are also buying shares in Indian companies. In effect, they are betting on future growth.” The problem with all foreign investment is that while it is focused on growth, the growth that investors are targeting is the value of their own investment and its contribution to augmenting their global power. From the investors’ point of view, the growth of the Indian economy is at best only a side-effect. The case of Reliance in particular will need to be monitored.

    In December 2020, Reliance’s chairman, Mukesh Ambani, promised a “more equal India … with increased incomes, increased employment, and improved quality of life for 1 billion Indians at the middle and bottom of the economic pyramid” thanks to the achievement of a $5-trillion economy by 2025. While reminding readers that “Facebook and Google are already partnered with Reliance and own stakes in Jio Platforms,” the Deccan Herald reports that the three companies have joined hands again to “to set up a national digital payment network.” The question some may be asking is this: When three partners occupy a central place in expanding Asia’s second-largest economy, who are the foxes and who are the hens?

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

  • in

    Win the Amazon union fight and we can usher in a new Progressive Era | Robert Reich

    The most dramatic change in American capitalism over the last half-century has been the emergence of corporate behemoths like Amazon and the shrinkage of labor unions. The resulting imbalance has spawned near-record inequalities of income and wealth, corruption of democracy by big money and the abandonment of the working class.All this is coming to a head in several ways.Over the next eight days, Amazon faces a union vote at its warehouse in Bessemer, Alabama. If successful, it would be Amazon’s first US-based union in its nearly 27-year history.Conditions in Amazon warehouses would please Kim Jong-un – strict production quotas, 10-hour workdays with only two half-hour breaks, unsafe procedures, arbitrary firings “and they track our every move”, Jennifer Bates, a worker at Bessemer, told the Senate budget committee on Wednesday.To thwart the union drive, Amazon has required Bessemer workers to attend anti-union meetings, warned workers they’d have to pay union dues (wrong – Alabama is a “right-to-work” state that bars mandatory dues), and intimidated and harassed organizers.Why is Amazon abusing its workers?The power shift can be reversed – but only with stronger labor laws, tougher trade deals and a commitment to antitrustThe company isn’t exactly hard-up. It’s the most profitable firm in America. Its executive chairman and largest shareholder, Jeff Bezos, is the richest man in the world, holding more wealth than the bottom 39% of Americans put together.Amazon is abusing workers because it can.Fifty years ago, General Motors was the largest employer in America. The typical GM worker earned $35 an hour in today’s dollars and had a major say over working conditions. Today’s largest employers are Amazon and Walmart, each paying about $15 an hour and treating workers like cattle.The typical GM worker wasn’t “worth” more than twice today’s Amazon or Walmart worker and didn’t have more valuable insights about how work should be organized. The difference is GM workers a half-century ago had a strong union, summoning the collective bargaining power of more than a third of the entire American workforce.By contrast, today’s Amazon and Walmart workers are on their own. And because only 6.4% of America’s private-sector workers are unionized, there’s little collective pressure on Amazon or Walmart to treat their workers any better.Fifty years ago, “big labor” had enough political clout to ensure labor laws were enforced and that the government pushed giant firms like GM to sustain the middle class.Today, organized labor’s political clout is minuscule by comparison. The biggest political players are giant corporations like Amazon. And what have they done with their muscle? Encouraged “right-to-work” laws, diluted federal labor protections and kept the National Labor Relations Board understaffed and overburdened.They’ve also impelled government to lower their taxes (Amazon paid zero federal taxes in 2018); extorted states to provide them tax breaks as condition for locating facilities there (Amazon is a champion at this game); bullied cities where they’re headquartered (Amazon forced Seattle to back down on a plan to tax big corporations to pay for homeless shelters); and wangled trade treaties allowing them to outsource so many jobs that blue-collar workers in America have little choice but to take low-paying, high-stress warehouse and delivery gigs.Oh, and they’ve neutered antitrust laws, which in an earlier era would have had companies like Amazon in their crosshairs.This decades-long power shift – the emergence of corporate leviathans and the demise of labor unions – has resulted in a massive upward redistribution of income and wealth. The richest 0.1% of Americans now has almost as much wealth as the bottom 90% together.Corporate profits account for a growing share of the total economy and wages a declining share, with multi-billionaire executives and investors like Bezos taking home the lion’s share.The power shift can be reversed – but only with stronger labor laws, tougher trade deals and a renewed commitment to antitrust.The Biden administration and congressional Democrats appear willing. The House has just passed the toughest labor reforms in more than a generation. Biden’s new trade representative, Katherine Tai, promises trade deals will protect American workers rather than exporters. And Biden is putting trustbusters in critical positions at the Federal Trade Commission and in the White House.I’d like to think America is at a tipping point similar to where it was some 120 years ago, when the ravages and excesses of the Gilded Age precipitated what became known as the Progressive Era. Then, reformers reversed the course of American capitalism for the next 70 years, making it work for the many rather than the few.Today’s progressive activists – in Washington, at Amazon’s Bessemer warehouse and elsewhere around the nation – may be on the verge of doing the same. More

  • in

    Amazon to stop selling books that frame LGBTQ+ identities as mental illness

    Amazon will no longer sell books that frame gay, lesbian, transgender and other sexual identities as a mental illness.
    The company made the announcement public in a letter sent to Republican senators who had asked why Amazon had stopped selling When Harry Became Sally: Responding to the Transgender Moment, a book by the conservative academic Ryan Anderson, best known for his opposition to same-sex marriage.
    In the letter, first obtained by the Wall Street Journal, Amazon writes: “As a bookseller, we provide our customers with access to a variety of viewpoints, including books that some customers may find objectionable.
    “That said, we reserve the right not to sell certain content. All retailers make decisions about what selection they choose to offer, as do we. As to your specific question about When Harry Became Sally, we have chosen not to sell books that frame LGBTQ+ identity as a mental illness.”
    The letter came in response to criticism from the rightwing senators Marco Rubio, Mike Lee, Mike Braun and Josh Hawley who wrote to the Amazon founder, Jeff Bezos, criticizing the book’s removal and calling it a signal “to conservative Americans that their views are not welcome on its platforms”.
    The move will have a significant impact on books that frame LGTBQ+ identities as mental illnesses. Amazon accounts for 53% of all books sold in the US and 80% of all ebooks, according to Codex Group, a book audience research firm.
    The decision comes at a moment when Republicans and the conservative movement are increasingly focused on so-called “cancel culture”. Republicans have recently criticized the decision by Dr Seuss publisher to stop publishing six of his books because they portrayed people of color “in ways that are hurtful and wrong”.
    “Everyone agrees that gender dysphoria is a serious condition that causes great suffering,” Anderson and Roger Kimball, publisher of Encounter Books, which published the book, said in a statement given to the Journal.
    “There is a debate, however, which Amazon is seeking to shut down, about how best to treat patients who experience gender dysphoria,” they added. “Amazon is using its massive power to distort the marketplace of ideas and is deceiving its own customers in the process,” they said.
    A spokesperson for LGBTQ advocacy group GLAAD said: “There’s an antiquated and shameful history of equating LGBTQ identity to mental illness, and Amazon’s decision to stop selling books that falsely equate the two is a positive step in ending the misinformation campaign against LGBTQ people, especially trans youth, meant only to cause harm.
    “This book is dangerous and harmful to trans kids, and those who are looking for information about trans identity should not look to resources written by someone who has made their livelihood by publishing screeds against the trans community.” More

  • in

    What if the most important election of the year is happening right now in Alabama? | Indigo Olivier

    This month, 5,800 Amazon warehouse employees in Bessemer, Alabama, will be voting on whether or not to unionize with the Retail, Wholesale and Department Store Union in what could turn out to be the most important election of the year.While the Bessemer fulfillment center itself is a drop in the bucket when compared to Amazon’s roughly 500 facilities around the country, this could be the ballot heard around the world. If successful, this election would mark the first unionized Amazon facility in the US.Over the past 26 years, Jeff Bezos has built himself a private empire. Amazon is now the second largest employer in the US, after Walmart, and the fifth largest in the world. The more than 800,000 Amazon employees across the country represent a population between the size of Maine and Montana. Globally, the company employs more than 1 million workers.Amazon is also the largest online retailer in the world, with a market cap (or value of the company’s shares) at $1.5tn – larger than the GDPs of most countries. The power this company yields is unrivaled.Yet Amazon’s success has been made possible by the labor of the underpaid and overworked employees who keep operations running; by weakened anti-trust laws; by a larger US economic shift from manufacturing to the service and logistics sectors; and, of course, by generous government subsidies, which have seen the company get away with paying no taxes in recent years.Unions alone will not bring Amazon to heel – but without them, all bets are off.The message this election will send to workers is: if we can do it in the anti-labor, “right-to-work” south against one of the most powerful companies in the world – one with no scruples with regards to its anti-union tactics – then workers can unionize anywhere.It would be a marked shift since Ronald Reagan’s mass firing of striking air traffic control workers, which caused a chilling effect on organized labor and ushered in a new pro-business, anti-worker era. Labor organizers are hoping that a victory in Bessemer might turn this tide.The labor movement recognizes the significance of this election. Members of the AFL-CIO and nurses from a recently unionized hospital in North Carolina have been phone banking to speak with Bessemer workers directly about the importance of voting yes on a union. Supporters have also made it clear that the fight at the Bessemer facility, where about 85% of workers are Black, is also a fight for racial justice.Biden’s recent statement in support of workers organizing in Alabama suggests that under this administration significant gains for labor can be won, but only if workers are willing to fight for them.One of the biggest lies sold to the American public has been to convince the vast majority of people that “politics” means showing up to the polls every few years to elect representative officials who will take it from there. Like many aspects of our lives, politics has become something to consume passively. It’s cable news networks, the punditry class, bumper stickers, lawn signs, campaign donations. It’s horse-race journalism and partisan tabloids.A union victory for one workplace is a victory for all workersIt has narrowed the spectrum of the “political” to red and blue, kids in cages or “migrant overflow facilities”, dog whistles over bull horns, an open disdain for working people or a veneer of compassion. Far fewer see the actions they take day-to-day, in the workplaces where we spend the majority of our waking lives, as something worthy of being political.The Bessemer election has the potential to topple this frame in favor of a new horizon. The difference between electoral politics and labor organizing is the difference between voting in a president who says he will phase in the minimum wage to $15 an hour over the next four years – yet surrenders before the battle begins – and taking direct action to ensure that higher wages are guaranteed in your contract immediately.Amazon prides itself on paying its workers $15 an hour – more than double the federal minimum wage – plus benefits. But rather than being a product of the benevolence of an enlightened CEO, we should all understand this to be a Machiavellian tactic used to preempt the serfs from storming the castle.More importantly, workers organizing towards a union must recognize that in the long run, without labor protections, every employee lives under the dictates of an unforgiving and despotic market. These “tides” will only turn when workers see themselves as a unified force and recognize that a union victory for one workplace is a victory for all workers. It favors a rising tide that will lift all boats to the trickle-down economics that have left us in perpetual drought.The Bessemer election is not one in which fulfillment center employees will cast their ballots and abdicate all further responsibilities. Rather, this vote would open the floodgates. More

  • in

    McDonald's spies on union activists – that's how scared they are of workers' rights | Indigo Olivier

    On 24 February, Vice reported that McDonald’s has, for years, spied on activists and employees engaged in labor organizing and the Fight for $15 campaign. Internal McDonald’s corporate documents obtained by Vice confirmed that the company has been concerned with gathering “strategic intelligence” on workers involved in efforts to secure higher wages, better working conditions and a union. This includes using data collection software to monitor employees and their networks through social media and “a team of intelligence analysts in the Chicago and London offices”.
    This comes after years of reporting on similar efforts by Amazon to prevent the unionization of their own employees. Job postings for intelligence analysts to monitor and report on “labor organizing threats”; social media monitoring; interactive “heat mapping” tools to anticipate and pre-empt strikes or union drives; Pinkerton operatives; and, most recently, coordinated efforts with county officials to change the traffic lights outside Amazon’s facility in Bessemer, Alabama to prevent organizers from speaking to workers during shift changes – all have been deployed to secure the company’s bottom line.
    As Vice points out, surveillance against labor organizers is nothing new. What’s new is the use of technology to aid in these efforts, which may also be in violation of federal labor law.
    The surveillance and intimidation of workers is a feature, not a bug, and one that has come to define American capitalism at home and abroad. As Vox noted last June, “the creation of urban police forces was largely spurred by a desire to contain union activism and protest.” While police in southern cities are largely a vestigial outgrowth of slave patrols, in northern cities like Chicago, elite businessmen pushed for the development of municipal police forces to suppress labor organizing around demands like an eight-hour workday. The concept of policing as “public safety” came later.
    There is no evidence to suggest government involvement in the surveillance of workers at either Amazon or McDonald’s. Yet the failure on the part of past administrations to condemn these egregious labor violations – or condemn the yawning wealth gap between megacorporations and the underpaid workers whose labor they depend on – amount to tacit approval of business-as-usual by any means necessary.
    This Sunday, Biden broke this awful trend by releasing a surprisingly strong statement in support of unions. While he stopped short of calling out Amazon by name, his video address was directed at “workers in Alabama” and represents the strongest pro-union statement of any president in modern US history.
    “You should remember that the National Labor Relations Act didn’t just say that unions are allowed to exist, it said we should encourage unions,” Biden said. “There should be no intimidation, no coercion, no threats, no anti-union propaganda. Every worker should have a free and fair choice to join a union. The law guarantees that choice.”
    Under an economic system that enriches CEOs by underpaying workers for the value of their time and pocketing the profits, there is a direct connection between the dystopian anti-labor tactics used by the likes of McDonald’s and Amazon and the $1.3tn transfer of wealth to the country’s 664 billionaires over the course of the pandemic. Bezos’s path to becoming the world’s first trillionaire is precisely because of his successful efforts at preventing unions from taking hold in his private empire.
    As Marx put it: capital is dead labor, which, vampire-like, lives only by sucking living labor, and lives the more, the more labor it sucks.
    Biden now has a choice to make: Amazon or unions. He can’t fight for both.
    On the campaign trail, Biden sent conflicting messages by cultivating the image of a blue-collar union man and simultaneously promising a room full of corporate donors that under his presidency “no one’s standard of living will change, nothing will fundamentally change.”
    Biden adopted a $15 minimum wage as one of his few concessions to the left, in an effort to win over Bernie Sanders supporters, and later changed his tone by saying he didn’t believe the provision would last in the most recent Covid-19 stimulus package. The statement amounted to a shrugging off of one among a number of campaign promises that look less likely to be fulfilled by the day. Democrats are now dishonestly pointing the blame at a single and little-known Senate parliamentarian, though Kamala Harris could easily overrule the decision and lift nearly a million people out of poverty.
    We can and should give credit to Biden for his recent statement on unions while also recognizing that words alone are not enough. Biden has the power to immediately pass a federal $15 minimum wage, raise corporate taxes, call on the National Labor Relations Board to investigate companies like McDonald’s and Amazon which unlawfully spy on their employees, and take a trip to Bessemer to show support for the facility’s 5,800 workers.
    This is a David-versus-Goliath fight and the stakes are simply too high to stop short of executive action. Until he proves otherwise, we need to remember Biden’s message to corporate America: nothing will fundamentally change.
    Indigo Olivier is a 2020-2021 Leonard C Goodman investigative reporting fellow at In These Times magazine More

  • in

    All I want for 2021 is to see Mark Zuckerberg up in court | John Naughton

    It’s always risky making predictions about the tech industry, but this year looks like being different, at least in the sense that there are two safe bets. One is that the attempts to regulate the tech giants that began last year will intensify; the second that we will be increasingly deluged by sanctimonious cant from Facebook & co as they seek to avoid democratic curbing of their unaccountable power.On the regulation front, last year in the US, Alphabet, Google’s corporate owner, found itself facing major antitrust suits from 38 states as well as from the Department of Justice. On this side of the pond, there are preparations for a Digital Markets Unit with statutory powers that will be able to neatly sidestep the tricky definitional questions of what constitutes a monopoly in a digital age. Instead, the unit will decide on a case-by-case basis whether a particular tech company has “strategic market status” if it possesses “substantial, entrenched market power in at least one digital activity” or if it acts as an online “gateway” for other businesses. And if a company is judged to have this status, then penalties and regulations will be imposed on it.Over in Brussels, the European Union has come up with a new two-pronged legal framework for curbing digital power – the Digital Markets Act and the Digital Services Act. The Digital Markets Act is aimed at curbing anti-competitive practices in the tech industry (like buying up potential competitors before they can scale up) and will include fines of 10% of global revenues for infringers. The Digital Services Act, for its part, will oblige social media platforms to take more responsibility for illegal content on their platforms – scams, terrorist content, images of abuse, etc – for which they could face fines of up to 6% of global revenue if they fail to police content adequately. So the US and UK approach focuses on corporate behaviour; the EU approach focuses on defining what is allowed legally.All of this action has been a long time coming and while it’s difficult to say exactly how it will play out, the bottom line is that the tech industry is – finally – going to become a regulated one. Its law-free bonanza is going to come to an end.Joe Biden’s choices for top staff in his administration include a depressing proportion of former tech company stalwartsThe big question, though, is: when? Antitrust actions proceed at a glacial pace because of the complexity of the issues and the bottomless legal budgets of the companies involved. The judge in one of the big American antitrust cases against Google has said that he expects the case to get to court only in late 2023 and then it could run for several years (as the Microsoft case did in the 1990s).The problem with that, as the veteran anti-monopoly campaigner Matt Stoller has pointed out, is that the longer monopolistic behaviour goes on, the more damage (eg, to advertisers whose revenue is being stolen and other businesses whose property is being appropriated) is being done. Google had $170bn in revenue last year and is growing on average at 10-20% a year. On a conservative estimate of 10% growth, the company will add another $100bn to its revenue by 2025, when the case will still be in the court. Facebook, says Stoller, “is at $80bn of revenue this year, but it is growing faster, so the net increase of revenue is a roughly similar amount. In other words, if the claims of the government are credible, then the lengthy case, while perhaps necessary, is also enabling these monopolists to steal an additional $100bn apiece.”What could speed up bringing these monopolists to account? A key factor is the vigour with which the US Department of Justice prosecutes its case(s). In the run-up to the 2020 election, the Democrats in Congress displayed an encouraging enthusiasm for tackling tech monopolies, but Joe Biden’s choices for top staff in his administration include a depressing proportion of former tech company stalwarts. And his vice-president-elect, Kamala Harris, consistently turned a blind eye to the anti-competitive acquisitions of the Silicon Valley giants throughout her time as California’s attorney general. So if people are hoping for antitrust zeal from the new US government, they may be in for disappointment.Interestingly, Stoller suggests that another approach (inspired by the way trust-busters in the US acted in the 1930s) could have useful leverage on corporate behaviour from now on. Monopolisation isn’t just illegal, he points out, “it is in fact a crime, an appropriation of the rights and property of others by a dominant actor. The lengthy trial is essentially akin to saying that bank robbers getting to keep robbing banks until they are convicted and can probably keep the additional loot.”Since a basic principle of the rule of law is that crime shouldn’t pay, an addition of the possibility of criminal charges to the antitrust actions might, like the prospect of being hanged in the morning (pace Dr Johnson), concentrate minds in Facebook, Google, Amazon and Apple. As an eternal optimist, I cannot think of a nicer prospect for 2021 than the sight of Mark Zuckerberg and Sundar Pichai in the dock – with Nick Clegg in attendance, taking notes. Happy new year!What I’ve been readingWho knew?What We Want Doesn’t Always Make Us Happy is a great Bloomberg column by Noah Smith.Far outIntriguing piece on how investors are using real-time satellite images to predict retailers’ sales (Stock Picks From Space), by Frank Partnoy on the Atlantic website.An American dream Lovely meditation on Nora Ephron’s New York, by Carrie Courogen on the Bright Wall/Dark Room website. More

  • in

    If you think Biden's administration would rein in big tech, think again | John Naughton

    Before the US presidential election I wondered aloud if Mark Zuckerberg had concluded that the re-election of Trump might be better for Facebook than a Biden victory. There were several reasons for thinking this. One was the strange way Zuckerberg appeared to be sucking up to Trump: at least one private dinner in the White House; the way he jumped on to Fox News when Twitter first placed a warning on a Trump tweet to say that Facebook would not be doing stuff like that; and the majority report of the House subcommittee on tech monopolies, in which it was clear that the Democrats had it in for the companies.But the most significant piece of evidence for the belief that a Biden administration would finally tackle the tech giants, and Facebook in particular, came in the long interview Biden gave last January to the New York Times, in which he was highly critical of the company.“I’ve never been a big Zuckerberg fan,” Biden said. “I think he’s a real problem … I’ve been in the view that not only should we be worrying about the concentration of power, we should be worried about the lack of privacy and them being exempt, which you’re not exempt. [The New York Times] can’t write something you know to be false and be exempt from being sued. But he can. The idea that it’s a tech company is that Section 230 should be revoked, immediately should be revoked, number one. For Zuckerberg and other platforms.” As readers of this column know only too well, section 230 of the 1996 US Telecommunications Act is the clause that exempts tech platforms from legal liability for anything that users post on their platforms. It’s the nearest thing social media has to a kill switch. Pull it and their business models evaporate. Trump had been threatening to pull it before the election, but he lacked the attention span to be able to do anything about it. Biden, on the other hand, had already talked about it in January and would have people around him who knew what they were doing. So maybe we were going to get some real progress in getting tech giants under control.And then he gets elected and what do we find? Biden’s transition eam is packed with tech industry insiders. Tom Sullivan, from Amazon, is earmarked for the Department of State. Mark Schwartz, also from Amazon, is heading for the Office of Management and Budget, as are Divya Kumaraiah from Airbnb and Brandon Belford from Lyft, the ride-hailing company. The US Treasury gets Nicole Isaac from LinkedIn, Microsoft’s department of spam, and Will Fields, who was Sidewalk Labs’ senior development associate. (Sidewalk Labs was the organiser of Google’s attempt – eventually cancelled – to turn Toronto’s waterfront into a data-geyser for surveillance capitalism.) The Environmental Protection Agency, a body that Trump looted and sidelined, gets Ann Dunkin, who is Dell’s chief technology officer. And so on.Well, I thought, perusing this sordid list, at least there’s nobody from Facebook on it. How innocent can you be? Politico reveals that the joint chair of Biden’s transition team, Jeff Zients, is a former Facebook board member. Another former board member is an adviser. And two others, one who was a Facebook director and another who was a company lobbyist, have, according to Politico “taken leadership roles”. And then, to cap it all, it turns out that Biden himself has a friendly relationship with a guy called Nick Clegg, who was once a serious politician and now doubles as Mark Zuckerberg’s bagman and representative on Earth.Truly, you couldn’t make this up. And just to add a touch of satire to it, the woman who is now a heartbeat away from the presidency, Kamala Harris, has a career-long record of cosying up to Silicon Valley. She participated, for example, in the marketing campaign for Lean In, Sheryl Sandberg’s anthem of capitalist feminism, even though at the time Harris was California’s law enforcement official most responsible for overseeing Facebook. As the state’s attorney general, she took a semi-comatose view of the way the big tech companies were allowed to gobble up potential rivals and bulldoze their way into new industries. Facebook’s controversial acquisitions of WhatsApp and Instagram, perhaps the most obvious anti-competitive mergers in the short history of the tech industry, happened on her watch and triggered no regulatory reflex. If Silicon Valley could be said to have a darling, then Ms Harris is it. And all those campaign donations from tech companies and moguls may turn out to have been a shrewd investment after all.Given these sobering circumstances, how should we calculate the odds of a Biden administration taking on the power of the tech giants? The answer: slightly better than those of a snowball staying cool in hell. But only slightly.What I’ve been readingIs 2020 just a taster?Graeme Wood has written a riveting essay, titled The Next Decade Could Be Even Worse, on the work of Peter Turchin, a quantitative historian who believes he has discovered iron laws that predict the rise and fall of societies.Birth of an iNationWhat if we viewed tech giants as countries? A thoughtful essay in Tortoise Media considers Apple as a one-party state as secretive as China. But more liberal. Phew!Is less Moore?I enjoyed a lovely post by Venkatesh Rao on the Ribbonfarm blog, about the mindset induced by living in a world governed by Moore’s Law. More

  • in

    Amazon removes shirts with derogatory slogan about Kamala Harris

    Amazon has removed a clothing line emblazoned with an offensive slogan referring to Kamala Harris from its website after complaints from Twitter users who branded it “unacceptable”.The T-shirts, tank tops and hoodies which had the words “Joe and the hoe” written in red, white and blue in the style of Democratic presidential nominee Joe Biden and his running mate Harris’s campaign logo, were on sale for between $24.99 and $42.99.The derogatory phrase was also recently adopted by the conservative radio host and friend of Donald Trump Rush Limbaugh, who has a history of making abusive comments about the senator.The removal of the items followed pressure from Twitter users who urged people to complain to the retail giant.“Let @amazon know this is unacceptable,” wrote @LesaPamplin, a criminal defence attorney from Texas, with a screengrab of the clothing. “We are not sitting idly by and taking this bullshit.”An Amazon spokesperson said on Wednesday that the products had been removed, adding: “All sellers must follow our selling guidelines and those who do not will be subject to action including potential removal of their account.”While the products appear to have been removed, the seller, “The Oxygen Bandit”, still seems to be active on the site with a range of politically themed garments including a “Byedon 2020” hoodie and “Kamala smelled best” and “I’m an AmeriKaren” T-shirts.Later on Wednesday Harris is due to make US history as the first woman of colour on a major party ticket when she accepts her party’s vice-president nomination at the Democratic national convention. More