In the 1990s, tech was seen as something that would make the future brighter and help out in everyday life. There were phones the size of bricks, travel agents and very limited social media – no need for a social media lawyer or social media compliance just yet – but there was so much trust in the power of technology.
Fast forward to 2019 when Big Tech is such a hot topic that presidential hopefuls are making a stand – and it could sway voters in the booths. Google, Facebook, Amazon and Apple are household names that trade your privacy for their services. The Department of Justice and the House Judiciary Committee are beginning an antitrust investigation to address these tech giants’ dominance and aggressive business practices. Some are calling for a breakup. However, the probe will likely result in new restrictions.
Mark Zuckerberg has always faced the Federal Trade Commission and the court of public opinion for their failure to adhere to social media federal regulations and taking underhanded social medial legal risks that may have tainted their reputation forever. It is already known that they abuse user privacy, but the question remains if they are a monopoly. They have several subsidiaries, such as Instagram and WhatsApp, that used to be competitors. Those that they have not purchased yet – SnapChat included – are seeing their services mimicked.
CEO Mark Zuckerberg believes that the successful company is a beacon of the American Dream and should not be broken up because of their competitive nature. He is, however, willing to discuss new rules for harmful content, election integrity, privacy and data portability. Given that Facebook is a free service and most monopolies focus on price control, a break up seems impossible. Expansion may be limited for Facebook and their subsidiaries may need to operate as separate entities.
Google provides the world its email, sets the rules for search engine optimization, and is a top mail advertising platform. It can promote its own ads and products over any competitor with ease. Its technology allows it to pick and choose who it does business with and it have no sense of obligation to rivals. Business, after all, is about competition. It sets its own regulations and has its own operating system for Android phones. Many believe that Google is a monopoly, but it’s hard to prove that in court.
Apple
Like Facebook and Google, Apple is everywhere. Its services entertain and connect the world. It is also the gatekeeper for apps with its access to the public and subscriptions. The Department of Justice may focus on its ability to pick and choose apps, raise its commission up to 30 percent of sign ups and 15 percent of renewals, and gouge competitors. Apple can also lock a user of out their account for perceived infractions, including not using Apple products such as screen-time managers. The counterargument is that Google Maps and Chrome are in their store despite being competitors. Regulators would focus on lowering commissions or have the app store be spun off.
Amazon
E-commerce, video streaming and grocery buying – is there anything Amazon is not a power player for? Europe has been conducting an antitrust probe on the company. The concerns are if third-party merchants are harvesting data for a competitive advantage and if the giant favors companies that use their delivery systems. Rivals claim that Amazon rolls out mimics of and steers customers to these masked brands. Amazon is a global retail player – only on line. Many brick and mortar shops still dominate their markets.
As a social media attorney, I understand that business as usual is constantly evolving competition is stiff but having boundaries creates happier customers. The government is cracking down on Facebook and other tech giants for violating the trust of their users and sidestepping regulations by being grossly out of compliance. As a social media law firm, we closely following how the Federal Trade Commission and the Department of Justice are dealing with these antitrust accusations.
