London Politica & Warwick Think Tank: The Social Face of Spyware Report
Following the recent heated battle for a TikTok ban in U.S Congress earlier this month, the words ‘TikTok’, ‘China’ and ‘Spyware’ have taken the internet by storm. In this new report, titled The Social Face of Spyware, we examine the ways in which the revolutionary social interface of TikTok may contain deeper interwoven systems of data collection, user tracking and surveillance tools that make it a substantial political threat. Through our series of articles, analysts from both London Politica and Warwick Think Tank delved into the ways in which TikTok has influenced propaganda and misinformation, whether it can be used as a means of surveillance, how it compares to long- standing privacy regulations and what implications this has for the wider international landscape.
Big Tech Under Fire: Antitrust Crackdown Targets Industry Titans
In recent years, there has been a resurgence of antitrust actions against major technology companies, both in Europe and the United States. In Europe, the European Commission, led by the new Commissioner for Competition, Margrethe Vestager, has brought multiple high-level lawsuits against companies such as Alphabet, Meta, and Apple, due to their alleged anti-competitive behaviour. On the American side, the Biden administration has appointed several officials with the explicit goal of dismantling the monopolistic barriers erected by these tech conglomerates. The ramifications of these actions could potentially span decades.
In Europe, the European Commission has launched numerous legal proceedings against major technology companies and introduced major legislation aimed at levelling the playing field for technology companies in recent years. As a result of its unlawful restrictions on Android phone manufacturers, Alphabet received the largest fine to date, which was upheld by the European General Court in 2022. The fine was more than 4 billion Euros. The company had previously been fined nearly 2.5 billion Euros for favouring its own services on the Google search engine. In 2023, the commission won another major lawsuit against a major technology company, Meta, for its data collection practises. This suit resulted in a fine of almost 400 million Euros. By reaching a settlement agreement with the European Commission at the end of 2022, to change its business practices in the 27-nation bloc, Amazon was able to avoid large fines from the European Commission. The changes will impact how Amazon displays rival products in customer searches and prohibit the company from using internal data on independent merchants to influence Amazon's home brand product offerings. Several lawsuits are currently pending against Apple for limiting access to mobile payments, with Apple Pay being the only allowed application on Apple devices, and for the Apple Store rules for music providers. Simultaneously, political agreements on the Digital Markets Act and Digital Services Act were reached in the first half of 2022, which will affect how technology companies interact with consumers and act as gatekeepers of online platforms. These pieces of legislation will go into effect between 2023 and 2024, with a particular emphasis on large technology conglomerates.
On the other side of the pond, American regulators have also become more active in limiting the powers of major technology companies. One example is the Department of Justice's antitrust lawsuit against Google, which accuses the company of stifling competition by abusing its dominance in online search and advertising. To maintain its dominance, Google allegedly entered into exclusivity agreements and linked its search engine to its other products. Another example is the FTC's antitrust lawsuit against Meta, which accuses the company of engaging in a "systematic strategy" to acquire potential competitors in order to maintain its dominance in the social media market. Regulators have also taken more aggressive preemptive action, such as the FTC suing to prevent Microsoft from acquiring Activision Blizzard, alleging that the company intended to use the game developer to further corner the gaming console market by lowering the quality of releases for other gaming platforms.
As antitrust actions against major technology companies gain traction, one possible outcome is increased regulation of these firms. This could take the form of even stricter antitrust enforcement, including the imposition of ever-increasing fines and penalties on companies that engage in anti competitive behaviour. For example, the framework introduced in the Digital Markets Act would result in fines of up to 10% of the offender's global annual turnover. This increased regulatory scrutiny may result in changes in how these companies operate and conduct business, potentially creating a more level playing field for smaller businesses and startups.
The dissolution of large technology companies, as seen in historical antitrust cases such as the breakup of Standard Oil and AT&T, is a less likely but still possible outcome of these actions. This could include the forced sale of specific business units or the division of various aspects of a company's operations, which would result in the emergence of new competitors and increased innovation in the technology industry. A widely floated example is the proposed break-up of Facebook, which would be implemented by spinning off Instagram or Whatsapp, as regulators argue that the acquisitions were approved in error. Many people, however, believe that such action is too drastic and unnecessary.
It is also important to note that these actions may have unintended consequences. According to a National Bureau of Economic Research study, antitrust actions have historically slowed innovation and reduced the efficiency of the technology industry. Furthermore, the costs of complying with new regulations may be passed on to consumers, leading to higher prices for technology products and services. Additionally, some academics argue that the antitrust tools and assessments used may not apply to the technology industry and might actually stifle the emergence of new companies.
The growing trend of antitrust measures on both sides of the Atlantic is highly advantageous as it serves to mitigate the expansive power of large technology corporations and promote a more equitable environment within the technological realm. By dismantling the barriers established by these companies as gatekeepers of their platforms, a more level playing field is established. However, it is essential to exercise caution and avoid more radical calls for dissolution and instead focus on developing antitrust strategies that are better suited to the unique characteristics of technology companies in order to preserve value.