US officials and tech giants: 5 steps to split Google and Facebook

Contents:

• Senator Elizabeth Warren: The War on Big Tech and Its Consequences
• Lina Khan: A Revolutionary in the World of Big Tech Antitrust Regulation
• The Covid Infodemic: The Relevance of Social Media Transparency in Modern Society
• A Liberal Solution to the Infodemic: How to Adapt Social Media to the Interests of Society Without Government Intervention

Senator Elizabeth Warren: The War on Big Tech and Its Consequences

The summer of 2019 proved to be a key moment in American politics, as the Democratic Party was actively preparing for the primaries that would determine the candidate for the 2020 presidential election. Among the most prominent participants in this race was Elizabeth Warren, Senator from Massachusetts, who at that time was considered one of the leading representatives of the progressive wing of the party. Her ideas and proposals resonated with voters, which made her one of the leading contenders for the nomination.

In her election platform, Elizabeth Warren presented an ambitious strategy called "Crush Big Tech." This plan includes a number of regulatory initiatives aimed at combating the monopolies of leading digital companies, known as GAFA (Google, Amazon, Facebook, Apple). Warren is committed to ensuring fair competition and consumer protection, proposing measures that could limit the market influence of these giants and prevent abuses of their dominant position. The strategy aims to create a more transparent and fair digital economy where innovation can develop freely and users have more control over their data.

Elizabeth Warren's key initiatives focus on prohibiting the simultaneous ownership of companies that both produce and serve as platforms for their promotion. She also advocates for the reversal of recent significant acquisitions and mergers. These measures are aimed at preventing conflicts of interest and protecting competition in the market.

One of the most radical proposals is the possibility of breaking up large corporations, which has the potential to significantly change the structure of the digital economy. Such a move could lead to a healthier competitive environment, fostering innovation and improving the quality of services for consumers. The breakup of these giants could create new opportunities for small and medium-sized businesses, which in turn would facilitate the growth and development of various economic sectors.

Facebook could lose messaging apps like WhatsApp and Instagram. Amazon would be forced to divest its AmazonBasics brand, as well as its Whole Foods chain and online clothing retailer Zappos. Such losses would significantly impact these companies' businesses, reducing their market share and reducing their competitiveness. The loss of such popular services and brands could lead to a decline in user base and revenue. In the highly competitive tech and e-commerce market, such changes could be critical for the companies' future development.

Google could suffer significant losses if it loses its core Ad Exchange platform or search engine. In this case, the company's acquisitions, such as the Waze navigation app and Nest Labs, a company specializing in smart home solutions, would also be at risk. The loss of these assets will negatively impact Google's business and its market position.

While Apple was not explicitly mentioned in the program, the senator emphasized in an interview that the company will have to make a choice between managing the App Store and their app development business. This choice could significantly impact their strategy and competitiveness in the market.

Warren emphasized that key features of companies like Google and Amazon will remain available to users. She noted, "You'll still be able to search on Google or shop for coffee machines on Amazon." This suggests that despite the changes, familiar services and opportunities for consumers will remain unchanged.

Ultimately, Joe Biden won the primaries and the presidential election. However, Elizabeth Warren's ideas have attracted interest from both Democrats and Republicans. This demonstrates growing concern about the influence of large tech companies on the economy and society. Growing concerns highlight the need to discuss the regulation of tech giants, their role in politics, and the potential impact on citizens.

Lina Khan: A Revolutionary in the World of Big Tech Antitrust Regulation

Lina Khan, a 32-year-old lawyer of Pakistani descent, was appointed head of the Federal Trade Commission (FTC) by President Joe Biden in June 2021. Her appointment is a significant step in the fight against the monopoly of big tech companies. Khan is known for her research and publications on antitrust policy and regulation of digital markets. Under her leadership, the FTC focuses on ensuring fair competition and protecting consumers in the face of the growing influence of technology.

Han's approach to antitrust law is based on a deep critical analysis of the practices of large companies, particularly Amazon. In 2017, she attracted public attention with her article "The Amazon Antitrust Paradox," which became a key moment in the debate over the need for antitrust reform in the United States. Her research highlights the importance of revising existing regulations to ensure fair competition in the marketplace and protect consumer interests.

Khan argues that current antitrust laws are unable to effectively address the challenges posed by tech giants. She emphasizes that the concentration of economic power in the hands of a limited number of companies undermines the foundations of democracy and fair competition. Legislative changes are needed to ensure the protection of the market and consumer interests. Without adequate regulation, we risk becoming controlled by a few large players, which could lead to negative consequences for innovation and economic growth.

Khan proposes an alternative approach to assessing monopolies that differs from the traditional model that dominated until the 1970s and was based on the views of Chicago School economists. Instead of focusing solely on prices, his method incorporates more rigorous criteria that assess the impact of monopolies on the market and society as a whole. This approach allows for a deeper understanding of the mechanisms through which monopolies can influence competition and consumers. Effectively assessing monopolies requires a comprehensive analysis that encompasses not only economic indicators but also social impacts, which is an important step toward a fairer and more competitive economy.

She criticizes Amazon for engaging in anticompetitive practices, including price dumping and aggressive acquisitions of other companies. Khan also points to examples of the corporation copying the ideas of smaller manufacturers. In particular, she cites the case of laptop stands sold under the AmazonBasics brand. Such actions undermine market competition and threaten innovation in the industry.

Khan proposes two key approaches to regulating large tech companies. The first is a return to the strict antitrust practices that were relevant in the past. This approach implies active government intervention to prevent unfair competition and protect consumer interests. The second approach views large tech companies as natural monopolies, which requires special attention to their impact on the market and consumers. Both approaches aim to create a fairer and more competitive environment that fosters innovation and protects user rights.

• Punishments for predatory behavior and price dumping.
• A thorough analysis of mergers and acquisitions from a competition perspective.
• Evaluation of vertical mergers as potential threats.
• Recognition of the concentration of economic power as a threat to democracy.

The second regulatory approach requires strict oversight, including non-discrimination of users and government regulation of prices. This implies the development of clear rules for large tech companies, which will prevent abuses and protect the interests of smaller market participants. Effective regulation will ensure a fair competitive environment and increase user trust in digital platforms.

The US authorities are currently focusing on the first regulatory approach, but there is growing support among experts for the second, stricter method. In the current market conditions and the growing influence of large tech companies, the ideas put forward by Khan are becoming increasingly significant. Big Tech regulation requires attention as it directly impacts competition and innovation in the digital economy.

Lina Han has the potential to become a central figure in reimagining US antitrust policy. Her work focuses on protecting consumers and supporting small producers, which is especially relevant in the face of the dominance of Big Tech companies. Given her approach to regulation, we can expect significant changes in antitrust practices, which will contribute to a fairer competitive environment in the marketplace.

The Covid Infodemic: The Relevance of Social Media Transparency in Modern Society

The COVID-19 pandemic has caused a sharp increase in misinformation on social media, which has negatively impacted government efforts to combat the virus. In some cases, fake news has achieved greater reach than information from official health organizations. This highlights the need to rethink current models of interaction between the public and social media to more effectively inform the public and combat misinformation.

A study published in August 2020 found that more than 5,800 people were affected by false advice circulating online. This advice led to serious consequences, including hospitalizations and even deaths due to the use of methyl alcohol and cleaning products as treatments for COVID-19. These figures highlight the critical danger of unverified information during crises, when citizens seek reliable sources of information. It is important to be attentive to data sources and follow the advice of medical professionals to ensure your safety and health.

Disinformation has become a serious problem, affecting even highly developed countries. In April 2020, conspiracy theorists in the UK set fire to 30 5G towers, believing they were connected to the spread of coronavirus. According to polls, in August 2020, one in four Americans sincerely believed the theory that the coronavirus was engineered to implant chips into the population. These facts highlight the scale and danger of the spread of false information in society.

According to experts, dangerous misconceptions and conspiracy theories have never spread as quickly as they do today. Scientists have described this situation as an infodemic and are urgently calling for the development of new methods for regulating social media. The growing amount of disinformation online requires a comprehensive approach to content management and improving the media literacy of users.

In July 2021, a group of scientists consisting of philosophers and biologists published an article emphasizing the need to recognize the study of the negative impact of social media on public behavior as a "crisis discipline." This area requires a prompt response to prevent potential social catastrophes. Studying the impact of social media on the psyche and behavior of people is becoming increasingly relevant, as the results of such research can significantly contribute to the development of strategies to minimize harm and improve public interaction.

Professor Carl Bernstrom, one of the authors of the study, noted that social media contributes to the formation of communities that support false theories. This creates conditions for the more natural spread of disinformation. This fact underscores the importance of a thorough analysis and possible revision of social media content policies to protect users from unreliable information. Creating a new model of interaction between government and social media is a complex task. Excessive government power can lead to censorship, while strict moderation risks violating free speech. It is important to note that the problem of the infodemic cannot be ignored, as it has a significant impact on public opinion and political processes. Thoughtful approaches are needed that will ensure a balance between the need to control information and the protection of citizens' rights to free expression.

A Liberal Solution To combat the infodemic: how to adapt social media to the interests of society without state interference

In November 2020, experts from the Forum on Information and Democracy, a joint research initiative with the UN, presented a report with an innovative model for regulating social media. This model aims to achieve a balance between the interests of society, the state, individuals, and the platforms themselves. Central to this concept are human rights, which serve as the basis for creating harmony in the digital space. Regulating social media with human rights in mind contributes to a safer and more responsible online environment, where the interests of all parties are taken into account and protected.

The report contains 250 recommendations for governments and social media companies aimed at increasing responsibility and transparency in the digital space. These recommendations will help create a safer and more open online environment, promoting compliance with ethical norms and principles in the field of digital technology.

The researchers urge states to require social media companies to disclose information about their activities. Transparency in the operations of social platforms helps build user trust and ensures the protection of their rights. This also allows for more effective control over the spread of disinformation and manipulation. A clear understanding of the algorithms used to promote content, as well as the sources of funding and advertising campaigns, will help create a safer online space. States must actively engage with platforms to ensure accountability and ethical standards in the digital environment.

• content and advertising moderation rules;
• the number of interactions with posts;
• the functioning of algorithms;
• the number of active users and bots;
• methods of handling user data.

Companies are obliged to ensure transparency of their internal activities by providing complete and accessible information. This helps build trust with customers and partners, and also helps in compliance with the norms and standards established by law. Complete information about the internal workings of a company is an important aspect of its reputation and can have a significant impact on the success of a business in the long term.

Compliance with established requirements should be monitored at the ex post facto stage. In case of violation, researchers propose introducing fines for companies in the amount of 3-4% of annual turnover. This is significantly higher than current fines, which often have an insignificant impact on business. In extreme cases, blocking social networks at the country level is possible. Responsibility for compliance should be assigned to the CEO, who will sign regular reports to state regulators. Effective enforcement measures and significant fines can help improve business compliance.

The state should have access to information about the functioning of social media platforms, but its influence should be clearly limited. An independent digital regulator should play a vital role in this process, ensuring transparency and accountability. Any government intervention should be openly disclosed to ensure user rights are respected and trust in digital platforms is maintained. This approach will balance the interests of the public with the need to oversee information technology.

All decisions on sanctions against social media platforms should be made exclusively by the courts, not by executive authorities. Laws that impose stricter restrictions on internet censorship than UN recommendations should be repealed. In particular, Russia's Article 282 of the Criminal Code on extremism should be revised, as it creates excessive barriers to free speech and open communication online. Ensuring user rights and adhering to international freedom of information standards should be a legislative priority.

Researchers recommend harmonizing content moderation policies on social media platforms in line with UN norms. This includes removing materials that promote terrorism, extremism, and disinformation. It is important that all moderation actions be justified, and that users have the opportunity to appeal decisions. This approach contributes to a more effective fight against threats and ensures the protection of users' rights to free speech.

Social media platforms are obligated to more closely monitor the accounts of government agencies and politicians, applying stricter moderation criteria to them than to ordinary users. The report emphasizes that platforms such as Twitter and Facebook have already begun blocking or labeling posts by government officials containing false information about COVID-19. This is necessary to ensure the accuracy of information and protect public health, as inaccurate data can lead to serious consequences. Strict moderation of such accounts helps prevent the spread of disinformation and promotes a more responsible information space.

The report's authors emphasize the importance of recalibrating social media algorithms to ensure users have access to a diversity of viewpoints, especially on key issues related to political processes and elections. Social platforms are obligated to ensure a level playing field for all candidates by providing an equal number of advertising spots. This approach promotes a more open and fair information space and supports democratic principles.

Currently, many countries and corporations are choosing a path that restricts free speech. For example, democracies such as Australia and India are implementing laws that strengthen government control over information online. At the same time, authoritarian regimes are implementing strict measures, using content control as a means of suppressing public discontent. The only example of regulation that comes close to liberal ideals is the initiative being developed in the European Union.