You are here


US Internet Policy’s Anticompetitive Asymmetric Accountability - DOJ Filing

Note: this post summarizes a Precursor LLC presentation filing for the record of the U.S. DOJ Antitrust Division’s 3-14-18 Roundtable on Antitrust Exemptions & Immunities. See the presentation/filing here.

Presentation Title:

“A Market Divided: U.S. Internet Policy Creates Anticompetitive Asymmetric Accountability.”
Government exemptions and immunities overwhelmingly favor regulatory arbitrage over free market competition. Accountability arbitrage harms: consumer welfare; free market forces; the process of competition; and economic growth.

Executive Summary:

The Beginning of the End of America’s Bad “No Rules” Internet Policy

Americans strongly believe no one should be above the rules or outside the law.

This quintessential founding American value was importantly affirmed this week when the U.S. House of Representatives passed FOSTA, the “Allow States and Victims to Fight Online Sex Trafficking Act,” with 94% support, (388-25) over the strong opposition of some members of the Internet Association. The Senate is expected to pass it in a few weeks, in a similarly overwhelming 90+% fashion. President Trump has indicated he would promptly sign it into law.

Simply, the new law would empower child victims of online sex trafficking to finally be able to sue in court to have websites that knowingly aided or abetted in their trafficking to be held civilly and criminally accountable for their crimes, if they are found guilty in a court of law under due process.

Think about it. What kind of law would require a new law to enable tens of thousands of child sex trafficking victims of unspeakable tortures to just have their rightful day in court to try and prove under due process that they have been illegally violated like any other American rightfully can in every other instance in court?

Something is profoundly wrong here.

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.

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.”

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

A Tale of Two Realities -- DOJ versus AT&T-Time Warner Merger

Sometimes it is easy to miss the forest for the trees.

That may be the case with the outlook for the DOJ v. AT&T-Time Warner case.

In this analysis, rather than recount the legal antitrust “trees” that have been well-argued in the DOJ’s complaint brief and AT&T-Time Warner’s defense brief, and the rule of law “tree” I analyzed initially, it is important to focus on how this case is highly-unusual in one characteristic, and that characteristic begs us to try and examine the forest not the trees.

What is highly-unusual about this precedent-driven case is the Judge, U.S. District Court Senior Judge Richard J. Leon.

Net Neutrality’s Masters of Misdirection

On net neutrality, we have all been tricked by the masters of misdirection.

For many years Google, Facebook, Amazon, and the Internet Association have deftly misdirected the media’s and government’s attention away from their unaccountable market power, discriminatory models and practices, and real consumer protection problems, towards the potential for discrimination by legacy-regulated, competitive, broadband providers.

The masterful misdirection becomes painfully obvious when one looks at the facts.

First, it’s the supposedly “competitive” Internet “edge” that is hyper-dominant and hyper-concentrated, and it is America’s broadband industry that is the most competitive in the world.


Q&A One Pager Debunking Net Neutrality Myths