Aug 16, 2019

Tech regulators put to the test

Illustration: Sarah Grillo/Axios

The backlash against giant tech companies is stressing the public institutions tasked with examining their power, as participants, observers and critics question whether regulators have the skill, will and authority to check corporate forces.

Why it matters: The machinery of antitrust regulation will process the broader conversation about tech's role in society through the mill of American politics and law — and some wonder whether it's up to the task.

Driving the news:

  • The Federal Trade Commission’s investigations into alleged privacy violations at Facebook and YouTube have raised questions about whether it has the authority it needs to police privacy in the era of aggressive online data collection. Some legislators and observers criticized the FTC’s proposed settlement with Facebook last month for multiple consumer privacy issues as weak, given the scale of Facebook’s revenues.
  • Broad reviews at the FTC and DOJ of the market power of major tech platforms like Facebook, Google, Amazon and Apple may put to the test the agencies’ ability to rein in alleged monopolies using decades-old legal doctrine and century-old laws.
  • The Department of Justice’s decision to approve T-Mobile’s merger with Sprint, as long as Dish created a fourth-major wireless carrier, was seen by critics as inadequate to protect competition in the wireless sector.

Context: Regulators are grappling with a moment where people across the political spectrum are increasingly distrustful of large tech corporations and the men and women they’ve turned into billionaires.

  • Presidential candidate Sen. Elizabeth Warren (D-Mass.) has risen in the polls attacking a corrupt culture in Washington that benefits megacorporations and the rich.
  • Even the right is no longer driven by purely deregulatory impulses. A vocal and influential part of President Trump’s base is more open to cracking down on large online platforms than the libertarians who have traditionally driven tech policy among conservatives in Washington.

Flashback: Earlier this month, a White House draft plan surfaced that would, per CNN, narrow the shield protecting platforms from liability for users’ content.

  • The plan would throw the Federal Communications Commission into a hot political debate over political bias online by asking it to serve as arbiter of the key legal protections for vast online platforms, although it's unclear if that would be within the agency's legal authority.

The big questions:

  1. Are these agencies up to the task of policing the industry?
  2. For those who believe they are not, what should Congress do about that?

What they’re saying: Some lawmakers have raised the prospect over the past year of either giving the regulators more power — or reorganizing the whole system.

  • “If we need to reassign jurisdiction away from the FTC and give it to an agency that’s better suited to enforcement, then maybe we should do that,” Sen. Josh Hawley (R-Mo.) said last month before the agency’s settlement with Facebook was announced. “You look at their history of frankly dilatory or non-enforcement, it makes me wonder if they are better suited to an oversight role and not very well suited to an antitrust enforcement role.”
  • Officials at the Federal Trade Commission have told Congress they would welcome a new national privacy law that gives them more power.
  • And activists have said that the predominant view in antitrust law that monopoly cases should hinge on whether consumers have been harmed, often in terms of a price increase — which can make it hard to go after a free service like Facebook or Google — is outdated.

Yes, but: The FTC has said it is doing the most it can do with the powers Congress has granted it, and the leader of the Department of Justice's antitrust division said last year that "there are serious risks to democracy in abandoning" the current standard.

What's next: The 2020 presidential election is likely to put corporate power — from tech to healthcare — in the spotlight.

Go deeper

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 5,410,228 — Total deaths: 345,105 — Total recoveries — 2,169,005Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 1,643,499 — Total deaths: 97,722 — Total recoveries: 366,736 — Total tested: 14,163,915Map.
  3. World: White House announces travel restrictions on Brazil, coronavirus hotspot in Southern Hemisphere Over 100 coronavirus cases in Germany tied to single day of church services — Boris Johnson backs top aide amid reports that he broke U.K. lockdown while exhibiting symptoms.
  4. Public health: Officials are urging Americans to wear masks headed into Memorial Day weekend Report finds "little evidence" coronavirus under control in most statesHurricanes, wildfires, the flu could strain COVID-19 response
  5. Economy: White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Public employees brace for layoffs.
  6. Federal government: Trump attacks a Columbia University study that suggests earlier lockdown could have saved 36,000 American lives.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Updated 2 hours ago - Politics & Policy

U.S. coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios. This graphic includes "probable deaths" that New York City began reporting on April 14.

The CDC is warning of potentially "aggressive rodent behavior" amid a rise in reports of rat activity in several areas, as the animals search further for food while Americans stay home more during the coronavirus pandemic.

By the numbers: More than 97,700 people have died from COVID-19 and over 1.6 million have tested positive in the U.S. Over 366,700 Americans have recovered and more than 14.1 million tests have been conducted.

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Japan's economy minister outlined plans on Monday to end the nationwide state of emergency as the number of new novel coronavirus cases continues to decline to fewer than 50 a day, per Bloomberg. Japan has reported 16,550 cases and 820 deaths.

By the numbers: Over 5.4 million people have tested positive for the virus as of Monday, and more than 2.1 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 13.7 million tests). The U.K. is reporting over 36,800 deaths from the coronavirus — the most fatalities outside the U.S.