Platforms

As we enter the third decade of the 21st century—the digital century—it is time for the public interest to reassert itself. Thus far, the digital entrepreneurs have been making the rules about the digital economy. Early in this decade, We the People must reassert a visible hand on the tiller of digital activity. Will public policy intervene to protect personal privacy? Can our leaders act to preserve the idea of a competition-based economy?

Anger toward big technology companies has led to multiple antitrust investigations, calls for a new federal data privacy law and criticism of the companies’ political ad policies. Perhaps no issue about the tech companies, though, has united lawmakers in the Capitol like the decimation of local news. Lawmakers from both parties blame companies like Facebook and Google, which dominate the online ad industry. Senate Majority Leader Mitch McConnell (R-KY) gave a big boost to a bill that may provide some papers a lifeboat.

It was the biggest corporate merger in history, and it stunned the markets. On Jan. 10, 2000, America Online, the world’s largest internet service provider, bid $183 billion for Time Warner, the world’s largest content provider. But the merger tanked. Time Warner cast off AOL in 2009. Verizon acquired AOL in 2015 for $4.4 billion, less than 1% of its 2000 value, adjusted for the S&P 500 index. AT&T bought Time Warner in 2018 for 20% of the adjusted price AOL paid in 2000. The merger’s failure is often attributed to executive mismanagement and clashing corporate cultures.

By the end of the 2014 election, campaigns and political committees had directly spent about $8 million on Facebook advertising, less than half the amount they’d spent on Google. Through September of 2019, that figure neared $46 million, 50 percent more than what Google took in. And that’s only direct spending, excluding spending by political consultants on behalf of candidates or campaigns. In the 2016 campaign alone, Donald Trump’s team spent somewhere around $70 million on Facebook through a digital firm run by Brad Parscale, who is now Trump’s campaign manager. 

The House Consumer Protection Subcommittee held a hearing "Americans at Risk: Manipulation and Deception in the Digital Age" to look at deep fakes and online manipulation. Subcommittee Chairman Jan Schakowsky (D-IL) used the informational hearing to hammer Big Tech and Facebook in particular. She said that Big Tech had failed to respond to the "grave threat" of deep fakes, dark patterns, bots, and other technologies that are hurting the public in direct and indirect ways.

Twitter recently announced that it will no longer allow political advertisements on its digital platform. Implementation of this decision, if possible at all, will have dire consequences for American democracy. Defining a political advertisement is nearly impossible. And social media helps under-funded candidates. And Twitter's ban will not eliminate disinformation. 

Privacy experts from Facebook and Apple defended the security and use of consumer data on their platforms, though they said greater protections and public education are needed, especially as technology evolves and new laws around it take shape.

Federal Trade Commission Chairman Joseph Simons said that the FTC was still investigating Facebook for antitrust violations, and that the FTC's $5 billion settlement with the company is the thing he is most proud of over the past year. The other was the $170 million settlement with Google/YouTube over kids privacy. Chairman Simons renewed his call for Congress to pass comprehensive privacy legislation, but does not favor a Democrat-backed proposal to create a new, separate, privacy enforcement agency.

On Dec. 30, Andrew Bosworth, the head of Facebook’s virtual and augmented reality division, wrote on his internal Facebook page that, as a liberal, he found himself wanting to use the social network’s powerful platform against President Donald Trump. But citing the “Lord of the Rings” franchise and the philosopher John Rawls, Mr. Bosworth said that doing so would eventually backfire. “So what stays my hand?