US regulators are seriously thinking about how to regulate high-powered companies like Amazon, Apple, Google and Facebook. There is one simple solution to curbing the power of Big Tech: Break down companies. But breaking down companies is a difficult task, and history suggests that many more solutions are possible.
Solution 1. Big tech companies share data with smaller companies.
Vector Myers-Schonberber, professor of internet governance at Oxford Internet Institute and co-author of Reinventing Capitalism in the Age of Big Data, says that breaking down big tech companies doesn’t just make them weaker. But will be worse for consumers. Elizabeth Warren, the Democratic presidential candidate, had suggested that those companies be sacked. Sharing data between services such as Google Search and Google Maps is useful, so sharing it with Google will make the services less reliable.
Vector Myers-Schoenberg says that the main problem is not that big companies are just big, but the problem is that innovation now relies on big data and small companies can’t keep that much data. This suggests that large companies will have to share data with less powerful competitors. For example, in Germany big insurance companies already share data with small companies. In this way, Startups also gets a chance.
Solution 2. Do not allow large tech companies to discriminate in your favor
Hall Singer, a Senior Fellow at the George Washington Institute of Public Policy, agrees that breaking companies is an inadequate solution to the problem, but unlike Mayor Schooner, he doesn’t care about data inequality. If Google makes a great product based on its data, what is the problem? “If they win in the market based on their best product, that’s good,” he said.
So Singer said that the problem is not why Google is so good. Neither do others, including Warren’s ideas, are right. As a platform, Google issues reviews of restaurants and provides reviews. These things can be more efficient and lead to benefits. He says the problem is that Google values its reviews on its platform more than its competitors, even when it does better. Are not.
Hall Singer offers a non-discriminatory rule that can stop this trend. Cable channels have already been regulated in the same way. Other companies started to get upset when Comcast started its content but Congress did not break this big company. ” Has allowed you to set foot in the content space but you cannot set your foot on the platform. “Now free network complaints can be escalated to a neutral arbitrator who can help everyone do the right thing. Responsible for the principle.
Singer believes that the same principle can apply to companies like Google and Amazon. The biggest concern is that small businesses do not have the same power as Google, but they hope that if big businesses go to court, as the National Football League sued Comcast, complaints from smaller brands would be made. The trend will be born.
Solution 3: Stop locking big companies into your customers
Another camp has also focused on how networks lock down consumers with their influence. If more and more people are already on Facebook, only a few will choose to go for a new social network because their friends will not be there and because they cannot copy enough content from Facebook. Advocates of “data portable” say being able to transfer data from one platform to another can be contested.