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Antitrust

Google’s Chrome Ad Blocker Shows Why the Ungoverned Shouldn’t Govern Others

Alphabet-Google is an unregulated monopoly that currently is de facto regulating the entire digital advertising ecosystem – in part via its new Chrome ad-blocker.

With minimal government accountability, it’s no surprise Google apparently is exercising its monopoly power anticompetitively and coercively.  

Only an out-of-control, U.S. Internet policy could create such an upside-down situation where Internet platforms like Google are so ungoverned by the U.S. Government, that they are free to broadly govern other companies in coercive ways that even the U.S. Government legally can’t do.  

Congress needs to pass legislation that restores a fair playing field with equal online-offline accountability to the law. Current U.S. Internet policy and law in the 1996 Telecom Act effectively exempts only Internet platforms from: FCC communications law; Federal and State regulation; liability for consumer negligence; and normal U.S. sovereign governance.

Internet platforms, like Alphabet-Google, act like they are above the rules and outside the law, because they largely are.

What to Expect from the Simons-FTC

Summary

More change is coming to the FTC than most appreciate.

That’s because the FTC is in the process of an unprecedented, clean-slate leadership change, at the same time society is undergoing an extraordinary inflection point – the “techlash.”  

In a nutshell, the evidence to date shows the eventual Simons-FTC is on path to be a tough, bipartisan, populist, by-the-book, enforcer of antitrust and consumer protection laws. That would be in stark contrast to, the “laxter” enforcement and apparent Google-capture, of the 2012-2017 Ramirez-FTC, and the current, sidelined, no-quorum, Ohlhausen-FTC. 

Google’s Civilian Surveillance Data + A U.S. Military 5G Network = Bad Idea

 

SUMMARY

What could possibly go wrong with a nationalized, dual-use, military-civilian, secure 5G wireless network to centralize all military and civilian U.S. transportation traffic control and management with Alphabet-Google as the only commercial wireless ISP “financing/anchor tenant?” Way too much.

America Needs a Consumer-First Internet Policy, Not Tech-First

Internet users are the forgotten consumers.  

They have been forgotten for over twenty years because America’s Internet policy has been tech-first-consumer-last. 

Hiding in plain sight, U.S. Internet policy prioritizes what’s best for technologies and Internet companies over what’s best for people, because at core it assumed in 1996 and 1998 that whatever is good for Internet technologies and companies is good for Internet consumers.

For many years that appeared to be largely true. However, the cascading revelations this past year -- big societal, economic, and political problems caused by Google, Facebook, Amazon, Twitter, etc. -- prove that core U.S. Internet policy assumption false.

Let’s contrast the Government’s protection of Internet companies with its protection of Internet consumers.

The Solid Conservative Antitrust Case Against Alphabet-Google – My Daily Caller Op-ed

Please do not miss my latest Daily Caller op-ed: “BREAK UP GOOGLE: There Is A Solid Conservative Antitrust Case Against Alphabet-Google.”

 

A Remedy for the Government-Sanctioned Monopolies: Google Facebook & Amazon

Only three online intermediary platforms command bottleneck distribution control of ~90% of online demand and ~90% of offline supply, with gatekeeper access-power over users and toll-keeper pricing-power over suppliers. They are: Google in information/data; Facebook in social sharing; and Amazon in commerce.

It is no coincidence that the all the monopolizations in the American marketplace today exclusively involve online intermediary platforms; and that they are happening in the only country in the world with a longstanding official, Internet-first industrial policy, that specifically advantages the intermedia companies with permanent blanket protection from competition, regulation, and liability.

How did Google, Facebook, and Amazon become de facto government-sanctioned monopolies?

Evidence Alphabet-Google Expects an Adverse EU Android Antitrust Remedy

This quarter EU antitrust authorities are expected to rule that Google is illegally dominant in the markets for licensable smart mobile operating systems and app stores for the Android mobile operating system, because Google evidently abused its dominance by contractually requiring Android device manufacturers and mobile network operators to install only Google search and make it the default search engine.

Importantly, this expected EU Android ruling occurs in the context of the EU’s seminal antitrust decision last June that: 1) ruled Google’s search services were dominant; 2) ruled Google abused that dominance by giving illegal advantage to its own comparison shopping service; 3) fined Google a record $2.7b; 4) imposed a cease and desist order on Google to stop this illegal behavior in 90 days (or face additional fines of up to 5% of Alphabet’s revenues); and 5) imposed a remedy that requires that rival comparison shopping services get treatment equal to what Google provides itself, a requirement that Google apparently has not been respecting.

What this all suggests is that the next ruling, fines, and remedies that the EU will consider in the Android case, are likely to be more adverse to Alphabet-Google’s business and model than the previous one.

The U.S. Internet Isn’t a Free Market or Competitive It’s Industrial Policy

 

In 16 minutes I overview for you why there is a woefully incomplete understanding of the U.S. Internet’s three “Standard Oil-like” monopolizations (Google, Amazon, and Facebook) and the four cartelization dynamics these three monopolies have collectively spawned. I also spotlight why there is virtually no understanding of the root cause of these artificial and anticompetitive outcomes. Please see this link to a video (2:30-19:05) courtesy of The Capitol Forum and CQ’s Fourth Annual Tech, Media, and Telecom Competition Conference on December 13, 2017.

My remarks at this conference summarize and expand on my White paper entitled: “America’s Antitrust Enforcement Credibility Crisis: America’s three enduring intermedia monopolies and four market cartelizations are a result of lax, asymmetric antitrust law enforcement & America’s anticompetitive Internet-first industrial policy.”

Ad Hoc Neutrality Isn’t Neutral, It Is Discriminatory and Unfair

 

For a neutrality or non-discrimination principle to have legitimacy, it must be applied neutrally and non-discriminatorily itself, because everyone knows true neutrality means not taking sides.

Non-neutral application of a net neutrality policy takes sides and thus is discriminatory and unfair, the exact opposite of net neutrality’s purported purpose and the definition of its signature word.

Arguably, most all the controversies and conflicts over net neutrality for the last fifteen years have resulted from a supposed neutrality principle applied non-neutrally, to favor Internet intermediary distribution networks like Google, Amazon and Facebook, and cloud computing networks, like Amazon, Microsoft and Google, over legacy communications and content networks.

Today the FCC, in voting 3-2 for the Restoring Internet Freedom Order, is legitimately implementing net neutrality in a neutral fashion, i.e. treating similar information services similarly with the same light touch, under the same market transparency enforcement oversight at the FTC, and not taking sides by non-neutrally, picking winners and losers from the start.

America’s Antitrust Enforcement Credibility Crisis – White Paper

Below is the abstract of my new antitrust white paper, which can be accessed in full here.

I will present it at the Capitol Forum CQ 4th annual tech competition conference in New York City Wednesday on “Obstacles to Antitrust Enforcement.”

It is also a timely and relevant addition to the Senate Judiciary Antitrust Subcommittee hearing Wednesday in Washington D.C. on “The Consumer Welfare Standard in Antitrust: Outdated or a Harbor in a Sea of Doubt?” because it discusses how the Chicago School antitrust consumer welfare standard remains sound as is, but warns that its application to Internet intermediary platforms is being badly distorted by America’s Internet-first industrial policy and its longstanding Internet competition double standard.

Many will find the 27-page white paper with >150 cites, a very helpful, up-to-date, overview and fact set on the current badly troubled state of competition and antitrust in the marketplace today.

A White Paper

Pages

Q&A One Pager Debunking Net Neutrality Myths