The end of choice
At the Congressional hearings a few weeks ago, all four CEOs who appeared - Mark Zuckerberg (Facebook), Jeff Bezos (Amazon), Sundar Pichai (Google), and Tim Cook (Apple) - said essentially the same thing in their opening statements: they have lots of competitors, they have enabled millions of people to build small businesses on their platforms, and they do not have monopoly power. The first of these is partly true, the second is true, and the third...well, it depends which country you're talking about, how you look at it, and what you think they're competing for. In some countries outside the US, for example, Facebook *is* the Internet because of its Free Basics program.
In the weeks since: Google still intends to buy Fitbit, which for $2.1 billion would give it access to a huge pile of health-data-that's-not-categorized-as-health data; both the US and the EU are investigating.
In California, an appeals court has found that Amazon can be liable for defective products sold by third-party sellers.
Meanwhile, Apple, which this week became the first company in history to hit a $2 trillion market cap, deleted Epic's hugely popular game Fortnite from the App Store because its latest version breaks Apple's rules by allowing players to bypass the Apple payment system (and 30% commission) to pay Epic directly for in-game purchases. In response, Epic has filed suit - and, writes Matt Stoller, if a company with Epic's clout can't force Apple to negotiate terms, who can? Stoller describes the Apple-Epic suit as certainly about money but even more about "the right way to run an economy". Stoller goes on to find this thread running through other current disputes, and believes this kind of debate leads to real change.
At Stratechery Ben Thompson argues that the Democrats didn't prove their case. Most interesting of the responses to the hearings, though, is an essay by Benedict Evans, who argues that breaking up the platforms will achieve nothing. Instead, he says, citing relevant efforts by the EU and UK competition authorities, better to dig into how the platforms operate and write rules to limit the potential for abuse. I like this idea, in part because it is genuinely difficult to see how break-ups would work. However, the key issue is enforcement; the EU made not merging databases a condition of Facebook's acquisition of WhatsApp - and three years later Facebook decided to do it anyway. The resulting fine of €110 million was less than 1% of the $19 billion purchase price.
In 1998, when the Evil Borg of Tech was Microsoft, it, too, was the subject of antitrust actions. Echoing the 1984 breakup of AT&T, people speculated about creating "Baby Bills", either by splitting the company between operating systems and productivity software or by splitting it into clones and letting them compete with each other. Instead, in 2004 the EU ordered Microsoft to unbundle its media player and, in 2009, Internet Explorer to avoid new fines. The company changed, but so did the world around it: the web, online services, free software, smartphones, and social media all made Microsoft less significant. Since 2010, the landscape has changed again. As the economist Lina Khan wrote in 2017, two guys in a garage can no longer knock off the current crop by creating the next new big technology.
Today's expanding hybrid cyber-physical systems will entrench choices none of us made into infrastructure none of us can avoid. In 2017, for example, San Diego began installing "smart" streetlights intended to do all sorts of good things: drive down energy costs, monitor air pollution, point out empty parking spaces, and so on. The city also thought it might derive some extra income from allowing third parties to run apps on its streetlight network. Instead, as Tekla S. Perry reported at IEEE Spectrum in January, to date the system's sole use has been to provide video footage to law enforcement, which has taken advantage to solve serious crimes but also to investigate vandalism and illegal dumping.
In the UK, private developers and police have been rolling out automated facial recognition without notifying the public; this week, in a case brought by Liberty, the UK Court of Appeal ruled that its use breaches privacy rights and data protection and equality laws. This morning, I see that, undeterred, Lincolnshire Police will trial a facial recognition system that is supposed to be able to detect people's moods.
The issue of monopoly power is important. But even if we find a way to ensure fair competition we won't have solved a bigger problem that is taking shape: individuals increasingly have no choice about whether to participate in the world these companies are building. For decades we have had no choice about being credit-scored. Three years ago, despit the fatuous comments of senior politicians, it was obvious that the only people who can opt out of using the Internet are those who are economically inactive or highly privileged; last year journalist Kashmir Hill proved the difficulty of doing without GAFA. The pandemic response is making opting out either antisocial, a health risk, or both. And increasingly, going out of your house means being captured on video and analyzed whether you like it or not. No amount of controlling individual technology companies will solve this loss of agency. That is up to us.
Illustrations: Orwell's house at 22 Portobello Road, London, complete with CCTV camera.
Wendy M. Grossman is the 2013 winner of the Enigma Award. Her Web site has an extensive archive of her books, articles, and music, and an archive of earlier columns in this series. Stories about the border wars between cyberspace and real life are posted occasionally during the week at the net.wars Pinboard - or follow on Twitter.