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  2. December 2016

December 2016

Forget AT&T. The Real Monopolies Are Google and Facebook.

[Commentary] Alphabet (the parent company of Google) and Facebook are among the 10 largest companies in the world. Alphabet alone has a market capitalization of around $550 billion. AT&T and Time Warner combined would be about $300 billion. Alphabet has an 83 percent share of the mobile search market in the United States and just under 63 percent of the US mobile phone operating systems market. AT&T has a 32 percent market share in mobile phones and 26 percent in pay TV. The combined AT&T-Time Warner will have $8 billion in cash but $171 billion of net debt, according to the research company MoffettNathanson. Compare that to Alphabet’s balance sheet, with total cash of $76 billion and total debt of about $3.94 billion. In the first quarter of 2016, 85 cents of every new dollar spent in online advertising will go to Google or Facebook, according to Brian Nowak, an analyst with Morgan Stanley. Google and Facebook can achieve huge net profit margins because they dominate the content made available on the web while making very little of it themselves. Instead, they both have built their advertising businesses as “free riders” on content made by others, some of it from Time Warner. The rise of these digital giants is directly connected to the fall of the creative industries of our country.

[Taplin is the author of “Move Fast and Break Things: How Google, Facebook and Amazon Cornered Culture and Undermined Democracy.”]

A big change to US broadcasting is coming — and it’s one Putin might admire

[Commentary] For years, members of Congress have fumed about what they regard as ineffective US public diplomacy, including the failure of broadcasting operations such as the Voice of America and Radio Free Europe/Radio Liberty to match the reach and apparent influence of networks such as Russia’s RT and Qatar’s al Jazeera. A frequent and arguably fair focus of criticism has been the Broadcasting Board of Governors, the body created to supervise government-funded media outlets while serving as a firewall between them and the political administration of the day.

A radical change to that system is now coming — and it looks like one that Vladi­mir Putin and Qatar’s emir might well admire. An amendment quietly inserted into the annual National Defense Authorization Act by Republican House leaders would abolish the broadcasting board and place VOA, RFE/RL and other international news and information operations under the direct control of a chief executive appointed by the president. The new executive would hire and fire senior media personnel and manage their budgets. The damage to US interests could be considerable.

Lobbying muscle may help tech titans trump Trump

In recent years, internet firms and their trade associations have spent lavishly to become some of the most powerful influencers in Washington, shaping a range of policies that extend from immigration to privacy to taxes. And that may be difficult to change.

Companies such as Alphabet Inc. (Google’s parent), Facebook Inc., Amazon.com Inc., and their trade groups such as the Internet Association spent $50.9 million on lobbying in 2015, more than four times what they spent in 2009, according to data compiled by the Center for Responsive Politics and the Center for Public Integrity. Campaign contributions from these technology companies, many less than 10 years old, quintupled between 2009 and 2016. The investments reflect lessons sometimes painfully learned. Just a few years ago, America’s technology companies held a bemused disdain for Washington, which they saw as an anachronism in the emerging digital culture. But times have changed, and so have the stakes— as digital devices and apps have advanced to collect more of consumers’ personal information. So internet companies have turned their sights and pocketbooks on Congress and additionally have involved themselves on boards and committees that inform the agencies writing oversight rules.

Senate Passes OPEN Government Act

The Senate has passed legislation that would require agencies to make more data available to the public in a machine-readable format. The Open, Public, Electronic and Necessary Government Data Act, or the OPEN Government Act (S 2852), mandates federal agencies, when "not otherwise prohibited by law," make data available in a way that does not "impede use or reuse." It must also be free to the public, "with no restrictions on copying, publication, distribution, transmittal, citing, or adaptation."

That news comes shortly after various watchdog groups concluded agencies might miss the deadline in implementing another transparency-themed effort: the 2014 Digital Accountability and Transparency Act. That act requires major federal agencies to publish their spending data online, also in a format easily accessible to the public.

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