Antitrust Legislation Insufficient for Information Marketplace
October 3, 2017
At his blog, Continuations, venture capitalist Albert Wenger calls for a new approach to regulating the information market in his piece, “Right Goals, Wrong Tools: EU Antitrust Case Against Google.” Citing this case against Google, he observes that existing antitrust legislation is not up to the task of regulating companies like Google. Instead, he insists, we need solutions that consider today’s realities. He writes:
We need alternative regulatory tools that are more in line with how computation works and why the properties of information tend to lead to concentration. We want networks and network effects to exist because of their positive externalities. Imagine as a counter factual a world of highly fragmented operating systems for smartphones – it would make it extremely difficult for app developers to write apps that work well for everyone (hard enough across iOS and Android). At the same time we want to prevent networks and network effect companies from becoming so powerful and extractive that they stifle innovation. For instance, I have written before about how the app store duopoly has prevented certain kinds of innovation. Antitrust is a sledge hammer that was invented at a time of large industrial companies that had no network effects. Using it now is a bad idea and doubly so because it goes only after Google which has by far the more open mobile operating system when compared to Apple.
Wenger suggests a solution could lie in a requirement for open standards, or in the “right to be represented by a bot.” He points to his 17 minute Ted talk, embedded in the article, for more on his public policy suggestions.
Cynthia Murrell, October 3, 2017
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