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Biden Calls for Antitrust Laws To Rein in Big Tech (theverge.com) 136

In his first State of the Union address since Republicans took a slim House majority, President Joe Biden called on Congress to take up an issue over which there's growing bipartisan momentum but powerful obstacles that stand in the way: strengthening American antitrust law to crack down on Big Tech's monopoly power. From a report: "Pass the bipartisan legislation to strengthen antitrust enforcement and prevent big online platforms from giving their own products an unfair advantage," Biden told lawmakers on Tuesday evening, referring to the American Innovation and Choice Online Act (AICOA). "Capitalism without competition is not capitalism," he added. "It's extortion. It's exploitation."

Biden's renewed push comes after Senate Majority Leader Chuck Schumer last year effectively killed two bipartisan antitrust bills aimed at cracking down on platform monopolies. While saying he supported the measures and promising a vote on them for months, the New York Democrat never brought the package to the floor, even after the White House urged congressional leadership to send the bills to Biden's desk during the lame duck session after the midterm elections. Schumer insisted the bills didn't have the votes needed to pass, contradicting the chief architects of the legislation, Sen. Amy Klobuchar, a Democrat from Minnesota, and Sen. Chuck Grassley, a Republican of Iowa. Grassley told TIME last fall that more than 20 Republicans were prepared to vote for the package.

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Biden Calls for Antitrust Laws To Rein in Big Tech

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  • by cahuenga ( 3493791 ) on Wednesday February 08, 2023 @10:30AM (#63275395)
    Exhibit "A": The California natural gas market
    • Re: (Score:2, Interesting)

      by thegarbz ( 1787294 )

      False. No competition is the single stable state of the system known as capitalism which is typified by private control and reliance of a free market economy.

      Ironically though the stable state is also referred to a condition of "market failure" meaning that the singular goal of capitalism is itself to fail.

      At least according to economic textbooks.

      The reality is no true free market exists because noone other than profit hungry corporations want that.

      • by gtall ( 79522 )

        Capitalism isn't a state, it is a process, and one at a polar end to true communism. And it requires a regulated market to prevent the reliance on a single company or group of companies. The world's economy changes, get use to it. So market regulation must also continually change. So, nice straw man you have constructed there for yourself.

        • by shanen ( 462549 ) on Wednesday February 08, 2023 @11:30AM (#63275589) Homepage Journal

          Interesting FP branch and the story is fresh enough to merit a comment. (Stale stores are for possible Funny, though there's so little of that these years...)

          To paraphrase the Gandhi joke:

          "What do you think of capitalism?"
          "Sounds like a nice idea. When are they going to try it?"

          Not like we've gotten anywhere close, but I think it's the rules of the game that matter, and right now the rules are crazy broken.

          So the solution approach I'd favor (and which I'm certain is nowhere near Biden's politically limited thinking on this topic) would be to tweak the tax system to favor freedom and discourage mindless greed. Imagine (if you can) a progressive tax on profits linked to market share. Then the royal road to higher retained earnings would call for reproducing your market-dominating company with amoeba-like division into smaller competing companies.

          (And I bet you couldn't.)

          Or in the form of a recent Mastodon [elephant sound?] comment:

          In theory, #democracy in a #republic means each person should get equal consideration of any good ideas that help everyone.

          In practice, the only ideas that get considered by the "elected" representatives are those coming from selfish rich folks who are most clever in bribing the politicians. Even more shocking, it turns out most of those "good" ideas are about ways to make themselves richer.

          Job creators in a flying pig's eye. Just cunning money grubbers treating other people like grubs.

          • by Anonymous Coward
            Oh good so cablecos wil have to open their lines to competitors.
      • The reality is no true free market exists because noone other than profit hungry corporations want that.

        Slightly disagree. An auction is the truest form of free markets. Here's a product. How much will you pay for it? In this one case, the free market determines the final price, not the company/seller.

        You might think you have something worth $100, but to the people bidding it's only worth $10.
        • by haruchai ( 17472 )

          "You might think you have something worth $100, but to the people bidding it's only worth $10"
          Further up the chain, someone mentioned cable companies having to sell access to competitors.
          How will that work with auctions, if the incumbents can set reserve pricing that the "people bidding" don't think is good value?

          • You can bid $0 dollars and not buy it. Enough people do that and the pricing changes.
            • by grmoc ( 57943 )

              Similarly, you can starve to death to protest food prices, or die of dehydration to protest water prices, etc.

              Sometimes it isn't as easy as you're making it out to be.

            • by haruchai ( 17472 )

              You can bid $0 dollars and not buy it. Enough people do that and the pricing changes.

              No, it won't.
              The cable companies want to keep their infrastructure private. If they get to set the price & you don't pay, you get nothing & they keep everything.

    • Capitalism is an ism. Almost most words that end in ism, means it is an ideology.

      Ideology is a poor replacement for a proper implementation. While a good ideology is easier to implement well, while a bad ideology tends to be more difficult to have a good implementation. The ideology in itself isn't good or bad. If people are willing to put in the extra work to make a bad ideology work well and just then it will be better than a good ideology that was put together like crap.

      Capitalism in general is a goo

  • by GlennC ( 96879 ) on Wednesday February 08, 2023 @10:33AM (#63275409)

    This is the result of decades of voting for "the lesser of two evils."

    It's become so bad now that "Team Red" and "Team Blue" can't ever be seen to work together.

    The real tragedy is that they have become such a powerful duopoly that other choices are no longer available.

    This will not end well.

    • This is the result of decades of voting for "the lesser of two evils."

      It's become so bad now that "Team Red" and "Team Blue" can't ever be seen to work together.

      The real tragedy is that they have become such a powerful duopoly that other choices are no longer available.

      This will not end well.

      You guys really need some sort of "I a Democrat supporter do promise to vote third party instead of dems, if you, a Republican supporter promise to vote third party too" kind of matchmaking scheme. Though I do wonder if trust and honor are enough to sustain this scheme. After all, we all know that supporters of [the other party] are lying bastards.

      • by GlennC ( 96879 )

        Unfortunately, the average American is unable to comprehend much beyond "my team good, other team bad."

        • by Dusanyu ( 675778 )
          I have always voted for the person and there views Lately I am Disappointed in the people running and angered about how the Issues are never talked about properly in election cycles
          • by shanen ( 462549 )

            When I was young, that's how I handled the top of the ballot, but for the rest of the races I tended to go for the person who sounded least represented. Just the name is often enough for that one, and the party tag could be ignored. At the top of the ticket, it was too often a "least bad" choice.

            However things changed over the years, and these days I think the only hope is for the dissolution of one party, so at that point the question became "Which party deserves to die and get replaced?" Looking at recent

            • by GlennC ( 96879 )

              ...I think the only hope is for the dissolution of one party...

              Fortunately there is only one Party.
              It has the two factions I like to call "Team Red" and "Team Blue."

              • by shanen ( 462549 )

                Bogus and defeatist. There are real differences, but it is unfortunate that the system basically hard-coded into the Constitution encourages, even forces, so much concurrence. If a page-one rewrite were allowed, I'm sure I could create an entirely new bunch of problems.

                We don't live in a perfect word. Get over it.

      • Ranked choice could be interesting, but good luck getting the self-centered elite pricks in office to ever allow that change to happen at the national level. They know it'd be certain doom for the same-ol', same-ol' lesser of two evils schtick to keep working, so they'll never let it happen.

        They've done a good enough job of keeping the public entertained with their supposed public fights that the public will never build trust between the two parties themselves. Granted, I think 99.99% of the bullshit public

        • by DarkOx ( 621550 )

          ranked choice is a horrid system for selecting leadership over the long term.

          It almost universally negative arguments rather than positive policy proposals to put the voters. Winning becomes more about convincing people to put the presumptive front runner somewhere other than the #1 spot then anything else. You think we have whip-saw policy now...

          Rank-choice would almost certainly lead to a whole new level of dysfunction. Either we will still have the two party legacy but see the government mostly change

          • It almost universally negative arguments rather than positive policy proposals to put the voters. Winning becomes more about convincing people to put the presumptive front runner somewhere other than the #1 spot then anything else. You think we have whip-saw policy now...

            Have you got examples of this happening, I don't know of may places that implement this on a national level, there are city councils I know of that do this and it seems fine.

            What I do know is the current system is not working, it doesn't allow change from the current 2 parties and needs to change.

            Will there be dysfunction with ranked voting? Most probably. The question is will it be more than the current system? My answer is I don't know. But I believe the current system is so broken that we need to at leas

            • For a better voting system, look at Australia. We have compulsory voting (you have to turn up and get your name ticked off, you can scribble on the ballot paper if you like. Of course there is early voting, online, phone, mail) You vote for candidates or parties with 1,2,3,4 ... etc. It's called preferential voting. Counting takes a bit longer. It works pretty well.
      • by Merk42 ( 1906718 ) on Wednesday February 08, 2023 @10:58AM (#63275469)
        We need stuff like Ranked Choice Voting. The current way voting works encourages a two party system.
        Of course, rolling out RCV would require that very same two party system to vote against its own interests.
      • by DarkOx ( 621550 )

        Sounds like vote swapping and its a crime

      • by irving47 ( 73147 )

        No it's not enough to sustain that. I like the idea, but when we have members of a party re-registering to the opposing party so they can vote in the Primary elections for a candidate that they want their *actual* party choice to beat, it's F'd up.

        Both have had major media players encourage the "strategy".

      • The idea that you get to rank your choices and if your first choice doesn't get in then the second counts and so on, that would allow people to vote for who they want as opposed to stopping the people who they least want getting in, aka the largest opposing party. But since this idea would likely break up the 2 party system it probably will not happen.

        I also like the idea of voting for no one, that is explicitly state that you believe none of the candidates/parties are able to run the country. I don't quite

    • Re: (Score:3, Informative)

      by Brett Buck ( 811747 )

      The system is designed around "partisan bickering", it is an intentional features. The various branches of the government are supposed to be at each others throats all the time. "Gridlock" is a benefit - it assures that only those laws with broad support are passed. The intent was to minimize the ability of the government to "rule". If they are busy arguing with each other, they aren't creating a ruling class, which was what the founding fathers were trying to avoid.

      • by Ichijo ( 607641 )

        "Gridlock" is a benefit - it assures that only those laws with broad support are passed.

        This assumes that passing laws with broad support is a benefit, but that's just an example of the bandwagon fallacy.

      • Except it's become dysfunctional now that the two factions are operating with two different sets of facts, and only one of them based on reality.

    • It's become so bad now that "Team Red" and "Team Blue" can't ever be seen to work together.

      This can actually be considered a feature, if you don't agree with the agendas of either parties. Musk tweeted [twitter.com] a statement along those lines prior to the mid-term elections (though he's hardly the first person to suggest this).

      It also doesn't always work, because sometimes, as the saying goes, both parties will agree to do something which is both evil and stupid and then call it bipartisan.

    • It's become so bad now that "Team Red" and "Team Blue" can't ever be seen to work together.

      Part of the problem, I think, is that it has been clear for decades to all the little groups with their own agendas that they're not going to have a chance in hell of getting anything they want passed unless they're part of the Big Two political parties, so they join whichever party whose principles they have to hold their noses least over. As a result, instead of their being mostly monolithic organizations with a single primary ideology, the Big Two have become fragmented collections of special interests w

    • This will not end well.

      Don't care it just needs to end.

  • TikTok (Score:5, Insightful)

    by JBMcB ( 73720 ) on Wednesday February 08, 2023 @10:36AM (#63275411)

    TikTok is gobbling up profits from Facebook and Twitter. Congress' response is to try to ban TikTok.

    Who needs market monopoly power when government does your dirty work for you?

    • "I swear that banning TikTok is all about public safety and has nothing to do with the gobs of data money that we're missing out on!" - Trump, probably
    • Never mind it is also sending immense amounts of data to the Chinese Communist Party to be mined for whatever might be found..

          You might have had a decent protectionist argument (wrong, just like the EU, but arguable) in another example. Clearly, TikTok is a special case.

      • Never mind it is also sending immense amounts of data to the Chinese Communist Party to be mined for whatever might be found..

        If that is the primary reason for banning TikTok, we'd also be banning Alibaba, and WeChat, and the dozens of MMORPGs that Tencent or Outblaze owns, or Eufy, or DJI...

        Nope it's just TikTok for some reason.

        • Who says we shouldn't block or ban that in a lot of situations? That there are also *other* potential paths doesn't mean you ignore TikTok.

  • by brunes69 ( 86786 ) <slashdot@nOSpam.keirstead.org> on Wednesday February 08, 2023 @10:49AM (#63275439)

    As much as everyone talks about "Big Tech", they compete with each other *fierecely*, to such a degree that it seems impossible for one to enter a market without another following.

    Facebook, Amazon, Apple, Microsoft, and Google, and to a lesser extent Disney and Warner/Discovery, are all bitter competitors. I don't see any of them doing price fixing or influencing markets. Google does command a large share of advertising, yes.. but so does Facebook. And good luck advertising on the #1 retail web property (Amazon), they don't even allow you do. Meanwhile, Amazon competes fiercely as well with Walmart, Target, Best Buy.

    Like, I honestly don't see the issue.

    • As much as everyone talks about "Big Tech", they compete with each other *fierecely*, to such a degree that it seems impossible for one to enter a market without another following.

      Facebook, Amazon, Apple, Microsoft, and Google, and to a lesser extent Disney and Warner/Discovery, are all bitter competitors.

      Like, I honestly don't see the issue.

      By the same token McDonalds, Nike and the Acme toothpick company are also "bitter competitors".

    • The book Chokepoint Capitalism/ [chokepointcapitalism.com] by Cory Doctorow and Rebecca Giblin shows in detail how the markets are extorted and how prices are fixed.
    • by bozzy ( 992580 )
      When there are only a few players around, all it takes is for them to make similar decisions on their own to have the same effect as collusion. Actual collaboration isn't required.
    • they compete with each other *fierecely*

      Yes and you managed to name all five of them. This is what we call an oligopoly and is no better for the wider market than a monopoly. They actively stamp out competition and present huge barriers to entry into a market. Better still they don't even compete with each other in the same market in many of their product segments.

      By the way collusion is just one small tiny piece of the larger thing that is "antitrust laws".

    • Facebook, Amazon, Apple, Microsoft, and Google, and to a lesser extent Disney and Warner/Discovery, are all bitter competitors.

      Like, I honestly don't see the issue.

      They are competitors for advertising dollars. Their products are NOT in competition. I will just hop on over to Disney to connect with my former classmates and buy a computer. I will hop on over to Google to watch Marvel super hero movies and have them send me some digital books from Tom Clancy.

      You still don't see a problem?

    • No they are not. If they were competing fairly quality would've improved or stuff would've gotten cheaper.
      Nothing has. Everything is staying the same quality while going up in price.
  • Not just big tech (Score:5, Interesting)

    by bradley13 ( 1118935 ) on Wednesday February 08, 2023 @11:05AM (#63275513) Homepage

    So the Biden administration is jumping on the bandwagon started by the EU. Both are missing the problem. It's not "big tech". The problem is "big anything".

    Capitalism is the best economic system ever invented, but it only works as long as competition is genuinely possible. The only way to ensure that is through government regulation. Remember 2008 and "too big to fail"? That was a failure of government regulation, because *no* business should ever be too big to fail. Also, big companies can litigate little companies to death, or buy them up, or destroy them in many other ways.

    The solution is to set a simple, objective threshold to prevent companies from getting too large. Any company worth more than X cannot be involved in M&A. It can only grow organically. Any company worth more than some multiple of X must divest, or else be forcefully broken up.

    • by Necron69 ( 35644 )

      And what would be an objective amount for 'X'? The value of a company is generally measured in market value, but that's a highly volatile measure that has more to do with investor's belief in a company, not necessarily their 'size'.

      Different industries have far different capital requirements, and different market values. There is nothing simple about trying to create a legal maximum size for businesses.

      • I disagree. This doesn't have to be set in stone, never to be changed. Pick something and have a plan to revisit and revise.

        No business can have more than 20% market share in its industry. A business' market share is defined as it's total annual gross revenue across all its business units in all industries. Every 5 years the FTC shall revisit this market share limit to assess whether or not it has met the goals of enhancing competition within the US economy, and shall adjust it by no more than 5% in either direction should market changes demand it.

        I think the mistake of most people planning action in any area, but especially in politics, is not setting out clear goals and reasons for the action, and not setting up a system to monitor and revise the action if it's not meeting the intended goals.

    • by nightflameauto ( 6607976 ) on Wednesday February 08, 2023 @11:28AM (#63275581)

      The thing about 2008 that nobody really talks about is the fact that the public, and the government, refused to learn anything from it. "Too big to fail" should have set off alarm bells across the spectrum, but aside from some talking heads spouting some nonsense and a few of the usual middle-class folks whining about big money movers getting bailed out while they got shoved around when they fucked up monetarily, no lesson appeared to have been learned. Or the only lesson learned was big business realizing they could literally do anything they wanted, and if they failed the government would step in and hand them tax dollars to save them.

      The worst part of the whole thing is not getting any stake in said companies for the money they were given. That's the very least that should have happened, but as far as any of us heard, it didn't.

      There SHOULD be a break-up of the biggest companies in the economy. I won't pretend to know what the threshold should be for looking at breaking a company, but I know for certain that there are several worth enough to be worth a serious regulatory look. Does Google need to make more money by scraping data? Do the hugest investment firms need to grow still larger, so they can devastate the economy more fully when they fail next time? Does Disney really need to own 75% or more of the entire entertainment sphere in America? None of these things seem healthy for society as a whole, yet our politicians turn a blind eye to it until the problem becomes so big that they HAVE to pay attention. And somehow, when that happens, our politicians decide the solution is to save the companies without any further thought being put into it.

      With as corrupt as our entire government is, I don't see that being fixed in my lifetime. There's just too much money changing hands in such a way that no business worth the billions or trillions of dollars some of these juggernauts have will ever get real scrutiny from the government. There's the big speeches, like Biden's, where they get called out. Some money will magically appear in Biden's campaign funds and suddenly this won't be that big of a problem again. It'll just silently go away. Much like his and Obama's promises of lowering healthcare costs for the general public. They've raised costs to the point where a lot of us can no longer afford insurance on a regular basis, let alone entertain having any sort of procedure, most of which aren't covered by insurance even if you have it.

      Our entire government is broken. They don't work for the people. They work for the bigger businesses and multi-billionaires that want nothing more than to strip what's left of the middle class to continue to build their wealth. I don't know that I see any hope of real change in my life. I made the mistake of believing in that possibility once. Blabbing some great talk without actual action won't make me stupid enough to trust in that hope again.

      • Bribeocracy (Score:4, Insightful)

        by Tablizer ( 95088 ) on Wednesday February 08, 2023 @12:42PM (#63275783) Journal

        > Our entire government is broken. They don't work for the people. They work for the bigger businesses and multi-billionaires

        We have to take money out of politics, but the big & wealthy buy laws and law removals that help them get even more influence. "Slippery slope" is generally considered a fallacy without further evidence of slippage, but slippery slopes can and do happen, and the wealthy are getting ever more power and using that power to get even more.

        The "Citizens United" ruling more or less legalized political bribery by labelling it "free speech". There's no evidence most forefathers wanted corporations to have the same rights as people, but GOP-stacked courts keep pushing for "corporate personhood" because the rich donate lots of money to law-makers who push it.

      • The biggest problem in 2008 wasn't really that any individual company being too big to fail, the problem was all the companies were engaging the same practices, and the industry was too big to fail. For how many decades can you unprofitably operate a hedge fund that is marching to its own beat in the hopes of making a huge killing when the majority strategy self-destructs? And in fact when that does happen, all the counter-parties who suddenly owe you huge sums will not be able to pay. So you can't just
    • by theCoder ( 23772 )

      I agree with your general concept, but when I hear "regulation" I think of a large bureaucracy devoted to figuring out and applying complex rules. I prefer an easier solution. Use the tax system. Specifically, make income taxes for companies more like income taxes for individuals.

      First change would be to make corporate income taxes be based on revenue not profit. Except for a few things that are tax deducible, my personal income taxes don't change based on what I spend in the year. But just about every

  • by jonwil ( 467024 ) on Wednesday February 08, 2023 @04:06PM (#63276423)

    If you want to look at an example of abuse of monopoly power, look at the likes of Comcast, AT&T and the other big telcos where they think nothing of spending huge sums of money to keep anything even vaguely resembling competitors out. (getting laws in passed in a number of states that restrict competitors, lobbying at the local level to prevent new entrants from being able to build infrastructure and generally fighting against anything that would force them to actually compete)

  • Senate Majority Leader Chuck Schumer last year effectively killed two bipartisan antitrust bills aimed at cracking down on platform monopolies.

    Democrat Senate Majority Leader, Democrat President and it doesn't even go up for a vote.

    Schumer insisted the bills didn't have the votes needed to pass,

    A vote will confirm that, or they will pass. Simples. Unless there's a rea$on not to have a vote.

  • "Capitalism without competition is not capitalism ..."

    When "Causes of the wealth of nations" was written, everyday services were fungible: If one didn't approve of the local butcher, baker, or candlestick-maker, an alternative was available on the other side of town. Now, Android OS and Apple hardware exists in nearly every country, a local alternative doesn't exist. It's not better at the international scale: Samsung decided to drop their own mobile operating system (Tizen for phones) and compete against the Google ecosystem, by using the Google Android O

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