[HN Gopher] Three Stanford professors on the sensible regulation...
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       Three Stanford professors on the sensible regulation of Big Tech
        
       Author : ubac
       Score  : 50 points
       Date   : 2021-09-09 17:59 UTC (5 hours ago)
        
 (HTM) web link (thebrowser.com)
 (TXT) w3m dump (thebrowser.com)
        
       | qntty wrote:
       | I'd be embarrassed to write a letter to the editor of a local
       | newspaper with an analysis this simplistic. Why did it take three
       | guys with PhDs to tell us that Regulation Can Be Good
       | Actually(tm)?
        
       | gego wrote:
       | In Europe digital humanisms seems to be the umbrella term...
       | https://dighum.ec.tuwien.ac.at/perspectives-on-digital-human...
        
       | arminiusreturns wrote:
       | Until you fix Kstreet corruption of the legislative body any
       | regulation pushes will almost invariably end up benefiting the
       | big corps despite however noble the idea behhind the particlar
       | legislion starts out.
        
       | [deleted]
        
       | mLuby wrote:
       | I'll add that regulation can be an _entrenching_ mechanism, as
       | the overhead of compliance has less relative cost to large
       | existing businesses than to small, new ones.
       | 
       | For example: if social media companies were required to ID their
       | users _in person_ within 30 days of sign-up ( "think of the
       | children" IDK), the infrastructure to comply with that regulation
       | would make it extremely difficult for a new startups to pull off,
       | while big incumbents with compliance departments already staffed
       | up can make it work.
       | 
       | Even worthwhile safety regulations have this effect. You can't
       | just start a hazardous chemical transportation company in a
       | weekend like you can a software company. I'd say that's working
       | as intended, but it does still give larger players a competitive
       | edge _just for being larger /older._
       | 
       | For my 2C/, limiting acquisitions and mergers is the way to go
       | here. The laws already exist, they just need to be more strictly
       | enforced. If a company's core business grows, the company can and
       | should grow. But we don't want a ravenous corporate blob that
       | absorbs everything tangential to its business, whether that's for
       | growth or defensive reasons.
        
         | vlovich123 wrote:
         | Can't you have the regulations only kick in once you have a
         | certain number of users or revenue to limit the entrenching
         | impact?
        
           | KorematsuFredt wrote:
           | In that case you have more terrible scenario where you have
           | certain companies who are not interested in becoming too
           | large. The innovation happens outside the parent company as a
           | separate entity. You end up having lego pieces that come
           | together to build something bigger which becomes economically
           | wasteful. You are imposing a cost on folks to think big.
           | Tesla or SpaceX be vision are trying to be super large
           | behemoths.
           | 
           | Among all these calls for "regulation" what is lacking is the
           | broader principle that we will use to regulate not just big
           | tech but for anyone. Google is different than Exxon but I
           | would like the principle that regulations them to be the
           | same. When you look at Texas or Florida trying to pass
           | regulations around tech, they seem pretty terrifying where as
           | California's regulation appears to be a big time nothing-
           | burger.
        
             | vlovich123 wrote:
             | Why is a uniform regulatory application across industries
             | required? That seems to have an aesthetic principle but I
             | can't imagine why it matters. We already regulate every
             | industry separately since the problems posed within each
             | industry is unique. Tech has a disconnect of scale between
             | size of the company and reach that we haven't seen. Oil has
             | pollution that tech mostly doesn't. Nuclear power plants
             | have to deal with nuclear waste. There's certain overlaps
             | but I think saying "all the regulations that apply to big
             | company X in industry Y have to apply to big company A in
             | industry B" is a weird and arbitrary line to draw.
             | 
             | Same goes for your comment about inefficiencies. That seems
             | to presuppose a particular truth without actually
             | presenting any evidence. Sure there can be inefficiencies
             | from having multiple companies involved. Conversely you
             | also can have better innovation as ideas are allowed to be
             | tested without having to get buy in within one large
             | massive corporation. Think for example about Xerox where
             | their Parc laboratory was regularly churning out ground
             | breaking research that was dying on the vine within Xerox.
             | For what it's worth that's potentially the case within big
             | tech (eg Vine getting killed within Twitter and then TikTok
             | showing success).
        
             | paulryanrogers wrote:
             | > You end up having lego pieces that come together to build
             | something bigger which becomes economically wasteful.
             | 
             | Isn't this offset somewhat by increased competition forcing
             | those operations to be as efficient as practical?
             | 
             | Large, vertically integrated companies can afford to comply
             | with more stringent regulation.
        
           | PedroBatista wrote:
           | Yes, you can. Fiscal policy makers do that all the time -
           | some say not enough times - but it's unlikely in this case
           | because guess who bought their seats and will be at the table
           | if and when these regulations start to be written?
        
           | TrainedMonkey wrote:
           | How do you stop fragmentation of large companies into
           | subsidiaries who are all just below the limit where
           | regulations kick in?
        
             | vlovich123 wrote:
             | Ownership stakes - for example if company X owns >10% of
             | company Y, then the regulations for company X could kick in
             | for company Y. There's some conceptual precedent for
             | reporting requirements of publicly held companies (if you
             | own more than a certain percentage it has to be publicly
             | reported).
             | 
             | The subsidiary fragmentation itself is uninteresting from a
             | regulatory perspective as long as the regulatory
             | environment is carefully crafted to pierce through
             | intentional corporate governance obfuscation.
        
       | [deleted]
        
       | DSingularity wrote:
       | Too little too late. The famous profs are silent as they are
       | already wealthy from the big-tech they helped create.
        
       | scotuswroteus wrote:
       | Rich, cloistered elites discover the bare minimum of ethical
       | considerations after being entirely walled off from the broader
       | American political conversations for the better part of two
       | decades. Says Reed Hastings OF A BOOK COMING OUT IN SEPTEMBER OF
       | 2021: "In System Error, we finally have a book about the digital
       | revolution that is serious rather than sensationalistic." This
       | isn't serious.
        
         | [deleted]
        
       | fnord77 wrote:
       | the government really doesn't like a challenge to its power.
       | 
       | as seen from past antitrust actions, I expect much of "big tech"
       | to be thoroughly dismantled.
       | 
       | alphabet will be chopped up along business lines. Each business
       | will have to develop its own independent ad system.
       | 
       | facebook will be forced to spin off their acqs and separate
       | completely from them.
       | 
       | amazon and AWS will be split, obviously.
       | 
       | dunno about apple. at least split their entertainment businesses
       | from their hardware businesses.
       | 
       | This will be a great opportunity for startups who might otherwise
       | never would have a chance.
        
         | notabanker wrote:
         | I really would like to believe your prophecy but want to offer
         | a few rebuttals...
         | 
         | > the government really doesn't like a challenge to its power.
         | 
         | But the government as a whole hasn't really made up its mind.
         | There are a few junior congresspeople who are vocal about
         | monopoly problems with Big Tech. But senior Democrat
         | congresspeople from Big Tech states have not uttered a word
         | against Big Tech. Even senior Republicans, and republicans have
         | been at the receiving end of Big Tech censorship, are loath to
         | antitrust as they have started conflating checks on Big Tech
         | monopoly with checks on free enterprise. In short, government
         | will has not coalesced around antitrust action against Big
         | Tech.
         | 
         | I don't know if Big Tech can be stopped by the government. A
         | possibility I see is that the stock market bubble pops, Fed
         | money printing loses its ability to inflate tech stocks,
         | leading to a decline in Big Tech power.
        
           | OneEyedRobot wrote:
           | >But the government as a whole hasn't really made up its
           | mind.
           | 
           | It's probably better to view the 'government' as a coalition
           | of self-interested groups. It's never really monolithic.
        
             | notabanker wrote:
             | Good point, that's really what it is .. a complex entity.
        
         | cheeseomlit wrote:
         | These companies aren't a challenge to government power in the
         | US, on the contrary they are a powerful tool for social
         | control. The relationship between massive corporate cartels and
         | the US government has become so incestuous that a distinction
         | can hardly be made, it's just a question of faction in-fighting
         | at this point. The centralization/monopolization of the tech
         | industry makes it more convenient to conduct mass surveillance,
         | as evidenced by PRISM. Its safe to infer at this point that all
         | major tech companies in the US are already infested with
         | alphabet spooks, there's no incentive to break them up as far
         | as the feds (that actually matter) are concerned. Just partisan
         | barking with no bite for the sake of 'optics'.
        
           | OneEyedRobot wrote:
           | > These companies aren't a challenge to government power in
           | the US, on the contrary they are a powerful tool for social
           | control.
           | 
           | In a sense I'd say that they are now a branch of government.
        
             | TeMPOraL wrote:
             | Even if not really a branch, it's remember that big
             | companies dominating whole market segments are important
             | geopolitical assets for countries which those companies
             | call "home".
        
       | superbaconman wrote:
       | I don't see how government can make even a dent in what are
       | ultimately cultural issues without drastic changes to the core of
       | our laws. The idea that you can't deny service to an individual
       | for their political views is a big shift. The idea that
       | businesses must align with government goals is a big shift. The
       | idea that limitations must be imposed on an individuals exposure
       | to social media for their own good is a big shift.
        
         | josephg wrote:
         | The situation as I see it is that we've essentially created a
         | new, digital place that we spend half our lives living in. And
         | it started with very little infrastructure. Facebook and Google
         | have created a lot of the infrastructure we need "for free" -
         | in exchange for doing surveillance capitalism. It's like if big
         | megacorps owned the roads outside your house and tracked you
         | and advertised to you as soon as you set foot outdoors. And
         | they will ban you from using the road outside if an AI doesn't
         | like something you do. Apple made a fiefdom with a harsh 30%
         | tax of any trades inside their walls. - and once you're inside,
         | it's very expensive to leave.
         | 
         | The whole situation is crying out for some sort of civic
         | process. If we live part of our lives in cyberspace, we need a
         | voice in how those spaces are governed. Something "By the
         | people, for the people." We don't let corporations run towns in
         | the real world and do this sort of thing. It's entirely
         | consistent to want to bring democratic values online too.
        
           | verve_rat wrote:
           | This seems entirely reasonable to me. Take, for example,
           | Youtube channels getting shut down for no apparent reason. It
           | seems very sensible for there to be a low cost and binding
           | tribunal independent of Google to appeal to.
        
           | thephyber wrote:
           | IMHO this is all wrong.
           | 
           | We already have a framework for physical networking services
           | that does this: Common Carrier. It doesn't and shouldn't
           | apply to companies other than "dumb pipe" utilities. No
           | company which can or does do any moderation of content should
           | be governed by CC laws.
           | 
           | You seem to think forcing all companies on the internet to
           | maximize democratic values is somehow either possible or a
           | good idea. I can't see how that could be implemented without
           | destroying every company's ability to build a brand, to
           | enforce their own contractual terms.
           | 
           | Example: you local church/temple website that accepts with
           | user-generated comments would be forced to allow and keep
           | every comment submitted, no matter how offensive to the
           | members or the faith the church practices. Non-believers
           | would be able to deface the service in a way that trespassing
           | laws prevent IRL. This compelled democratic values
           | maximization concept doesn't exist in the offline world so
           | you would have to build the logical/rational foundations for
           | doing it from scratch. Obviously the church/temple example is
           | contrived and those are far from Big Tech companies, but if
           | you assert that some services are required to retain all
           | offensive content and others aren't, then you need to develop
           | a litmus test, which I argue is futile.
           | 
           | And from where I stand, demanding a civic process is really
           | strange considering most civic processes in the USA are
           | deteriorating while Big Tech is doing the opposite.
        
         | azinman2 wrote:
         | People keep saying that, but the evidence seems to be largely
         | the opposite: the most viral shares on twitter and Facebook are
         | actually right leaning. Yes more right firebrands have been
         | kicked off, but that's after they essentially are sharing
         | things that have to do with violence.
         | 
         | If you try to say revolution is a political viewpoint, I guess
         | you could make that point, but it seems entirely reasonable
         | that asking for select people to be killed is crossing a
         | meaningful line. Especially in a democracy.
        
           | KorematsuFredt wrote:
           | > but it seems entirely reasonable that asking for select
           | people to be killed is crossing a meaningful line.
           | 
           | There is enough legal and philosophical body of work around
           | that question. But either ways it is not a meaningful reason
           | for "regulation". All platforms already have restrictions for
           | such things and very likely government regulations will force
           | platforms to allow for "kill all X" talks but not "kill all
           | Y" talks making the platform very toxic.
           | 
           | For example, American company's response to Jan 6 appears to
           | be far more mature and useful to American society than that
           | of American federal government and FBI.
        
         | OneEyedRobot wrote:
         | >The idea that you can't deny service to an individual for
         | their political views is a big shift.
         | 
         | I can't remember people being denied service for their
         | political views until just recently.
         | 
         | Another odd thing is that a company would give a rip about
         | their employees political views.
         | 
         | These are strange times.
        
           | TeMPOraL wrote:
           | Look back 50+ years. In the Soviet Union and Soviet-
           | affiliated countries, people were denied services and jobs
           | for being not visibly communist enough. In the United States,
           | people were denied services and jobs for being not visibly
           | anti-communist enough.
           | 
           | The idea of not discriminating based on politics or other
           | overt characteristics, as a widespread cultural phenomenon,
           | was relatively new and short-lived.
        
             | MrZongle2 wrote:
             | _In the United States, people were denied services and jobs
             | for being not visibly anti-communist enough._
             | 
             | In the early 1970s? I'd like to see some citations of that.
        
       | crazy_horse wrote:
       | I do academic work in this area, which was inspired by watching
       | Reddit and HN for a decade.
       | 
       | I do think something must be done, but the notion that it should
       | be the government taking action scares me. I believe,
       | platonically that is the right way for government to act, to take
       | necessary actions to counter predatory behavior.
       | 
       | What scares me is that we chanced into this. Zuck made some
       | brilliant movies but he was the same guy at 22 that thought that
       | younger people were smarter. Notice he wasn't young enough to say
       | that at 32. The people in government do not understand tech. They
       | don't understand how it works, they don't understand where it is
       | going, and they don't understand its ethos. Government right now
       | is dominated by ideologues and demagogues. I'm very worried that
       | any government action is going to end up being something that
       | only FB, Google, etc can do anything about.
       | 
       | Why does the government need to act? Why spend so much time
       | complaining about it on HN? We've been doing that for a decade.
        
         | eplanit wrote:
         | "I'm very worried that any government action is going to end up
         | being something that only FB, Google, etc can do anything
         | about."
         | 
         | Worse is the likely objective/outcome: big tech and gov't.
         | joining forces.
        
         | mrfusion wrote:
         | Have you studied creative destruction in your work? Could that
         | apply here?
         | https://www.investopedia.com/terms/c/creativedestruction.asp
        
         | philipov wrote:
         | As I see it, the problem is essentially an antitrust issue, but
         | our notion of antitrust hasn't evolved since the early 1900s to
         | cover the realities of today's economy. Whether a company has
         | complete market domination is a red herring used to dismiss
         | other types of market failure.
         | 
         | Cartel behavior does not involve monopolies. Vertical
         | integration of supply chains does not require a monopoly to be
         | a problem. Markets are defined in a way that makes it look like
         | on paper the leader doesn't have a dominant position simply
         | because they don't have 100% market share, but it hides that
         | market share doesn't tell the whole story. Facebook should have
         | never been allowed to buy their most promising competitors in
         | Instagram and WhatsApp, for example.
         | 
         | Intentionally confusing the market for phones with App stores
         | is an example of a problem that 20th century antitrust never
         | had to deal with. Just because two products look the same
         | doesn't mean they compete with each other if there are other
         | reasons, such as identity politics or vendor lock-in, which
         | cause people to not treat them as replacements for each other.
         | 
         | All these things are issues which government should
         | legitimately be regulating, and at one point did regulate. But
         | there is no will left to do that anymore, and the poor quality
         | of our politicians is partly to blame for it.
        
           | nobody9999 wrote:
           | >Intentionally confusing the market for phones with App
           | stores is an example of a problem that 20th century antitrust
           | never had to deal with.
           | 
           | I'd say that the issues with app stores are a pretty direct
           | parallel to Company Towns[0], whose issues have been known
           | and addressed for more than a century.
           | 
           | [0] https://en.wikipedia.org/wiki/Company_town
        
         | TeMPOraL wrote:
         | > _The people in government do not understand tech. They don 't
         | understand how it works, they don't understand where it is
         | going, and they don't understand its ethos._
         | 
         | That may have been true 20 years ago. The people in government
         | understand current tech and its ethos very well, because it's
         | the same ethos as in every other industry: profit over all.
         | 
         | What surprises me is to see people still thinking our industry
         | has any trace of the original "hacker ethos" left in it. It
         | doesn't. Big Tech companies are just run-of-the-mill
         | megacorporations, with all pathologies that come with megacorps
         | run by suits, differing only by the flavor of the products they
         | sell. Startup world is just another Wall Street, with a
         | sprinkling of tech sugar on top of the dollars being gambled.
         | 
         | Governments understand this well. Whether it's Google or GM or
         | Monsanto that's pulling business shenanigans, it's all the same
         | business shenanigans. Hacker ethos? That ended when programming
         | started to pay well.
        
           | crazy_horse wrote:
           | What you are describing is SV. SV doesn't have to be the tech
           | industry and it isn't.
        
         | jjulius wrote:
         | >... and they don't understand its ethos.
         | 
         | What is tech's ethos?
        
         | readflaggedcomm wrote:
         | Because the authors, and tech industry milieu they represent,
         | believes democratic government is the only method for resolving
         | differences:
         | 
         | >[Democracy] doesn't mean that there's some alternative way to
         | accomplish that underlying task
         | 
         | >[Democracy is] about a fair process for refereeing in an
         | ongoing way, the contestation of citizens' own choices and
         | preferences.
         | 
         | Like they said, would you prefer the Pope to censor your tech?
         | Would you wear unregulated clothing? Of course not. "[W]e need
         | to break people out of a kind of binary mindset where markets
         | are good and markets have all the solutions" and people's needs
         | must be decided democratically.
        
           | crazy_horse wrote:
           | These profs know that democracy isn't a magic fix. The
           | changes made to tech today will come from the democratic
           | system, the same system that is not working great. The
           | current situation sucks but a challenger still has the power,
           | overreaching legislation instead puts that power into the
           | public will which is arbitrary and easily misrepresented. I'm
           | not opposed to a break-up or limits on some of the bigger
           | companies, but it's beyond that which worries me, personally.
        
             | prox wrote:
             | It's a false view that markets will regulate themselves.
             | They tend not to beyond what their clientbase deems
             | acceptable or not. So we have big tech which undermines
             | democracy, and in the US democracy is skewed because people
             | aren't properly represented because of lobbyists and
             | gerrymandering (and sponsorship by corporations instead of
             | their constituents)
             | 
             | So this vicious circle is hard to break if we aren't will
             | to break with old ways.
        
             | readflaggedcomm wrote:
             | It can be, if people are energized by their newfound
             | agency, instead of towed around on cattle cars called
             | Facebook and Google. Like Rob says in the interview,
             | cooperation beats competition. Cooperative community
             | solutions beat greedy private solutions.
        
               | crazy_horse wrote:
               | I guess my main disagreement is that private solutions
               | dn't have to be greedy and community solutions are often
               | driven by it. I think we want the same or similar things,
               | we disagree about the process?
        
               | TeMPOraL wrote:
               | > _private solutions dn 't have to be greedy_
               | 
               | But they do, over time. This is what competition does.
               | You may start out in a fresh market fully intent on doing
               | a good and honest job, but then competitors arrive.
               | First, they force you to innovate and improve your
               | offering. Then, when improvements start yielding
               | diminishing returns, you're forced to either become
               | exploitative and dishonest, or be outcompeted.
        
             | UnpossibleJim wrote:
             | While we live in an idealistic democracy, in truth we live
             | in a plutocracy. Tech has become one of the venues to
             | become a plutocrat and wield influence that a single vote
             | in a representative republic can't even imagine.
        
         | efitz wrote:
         | The problem is that we are dealing with large concentrations of
         | power. These tech corporations have power in the form of money;
         | additionally many technology corporations have power in the
         | form of the ability to selectively amplify or silence people
         | and ideas. Many of these companies have monopolies, but many of
         | these companies, while jot monopolies, participate in very
         | small oligopolies. How many credit card networks are there? How
         | many microblogging sites?
         | 
         | Effectively if you piss off one of these companies, they can
         | exclude you from entire swathes of tech, media or the economy.
         | In such situations many people will choose to self censor.
         | Personally I don't believe that is healthy; it leads to
         | situations like the US 2016 election when all the polls were
         | well in favor of one candidate and then the other won.
         | 
         | Another thing about corporate power in general is that it is
         | not the case that the corporation uses its power
         | proportionately representing either its employees or
         | shareholders. The corporation uses its power in accordance with
         | its officers' desires. In this way corporations are the
         | ultimate anti-democratic institutions as they concentrate the
         | economic power generated by many diverse people and centralize
         | it to one or a few people. Hence Bezos, Zuckerberg, etc.
         | 
         | And the combination of skill, hard work and luck that led to
         | their leadership of these corporations doesn't in any way
         | relate to their values or judgment and the ways that they will
         | use their power.
        
         | colinmhayes wrote:
         | The government is the only institution with a monopoly on
         | force. How else can institutional changes be enacted without
         | worrying about defection?
        
           | crazy_horse wrote:
           | How many people here work in those institutions? Do they not
           | have power to make change or work somewhere else?
        
             | colinmhayes wrote:
             | Not really... If the market saw an opportunity to make
             | money by defecting from a commonly accepted norm that isn't
             | enforced by law there are people who would be willing to
             | implement the defection for the right price.
        
             | Barrin92 wrote:
             | There is absolutely zero incentive for any of those people
             | in power to do anything about it. They work in one of the
             | best paying industries on earth, they financially stand to
             | benefit from the very things that ought to be regulated.
             | 
             | How do you think anyone reigned in the tobacco industry?
             | Everyone in the industry just went, "well I hate coffers
             | full of money, let's stop working here" ?
             | 
             | That's what governmental authority exists for. The idea
             | that the foxes polices themselves while they have all the
             | keys to the henhouse is comical.
        
               | TeMPOraL wrote:
               | > _The idea that the foxes polices themselves while they
               | have all the keys to the henhouse is comical._
               | 
               | Exactly. "The tragedy of the commons" is a well-known
               | terms that means, "given the keys to the henhouse, the
               | foxes are not able to police themselves well enough to
               | keep themselves from starving" - and this doesn't even
               | begin to consider the interests of hens.
        
           | OneEyedRobot wrote:
           | Judging from the daily riots in Portland without law
           | enforcement involvement I'd say that force has become a more
           | egalitarian hobby.
        
             | void_mint wrote:
             | You can really tell who gets their info on Portland from
             | Fox News and not Portland residents.
        
       | [deleted]
        
       | Animats wrote:
       | That article is awful. Three professors coming up with five-world
       | clickbait memes, while evading real issues.
       | 
       | A real question is, in areas where network effects are very
       | strong, how do we avoid monopolies forming?
        
         | seph-reed wrote:
         | This is a very interesting question.
         | 
         | Almost like saying: how do we keep gravity from eventually
         | creating a few giant blackholes?
         | 
         | Granted, we can't change physical laws. But if we could, we
         | would clearly need some sort of anti-gravity that kicks in just
         | passed the point of a black hole.
         | 
         | So I guess there needs to be some benefit of _not_ being a
         | monopoly.
        
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