Last week, the chairman of the House antitrust subcommittee wondered “whether there would be a way to think about separating what platforms do versus people who are selling products and information — a Glass-Steagall.”
It’s hard to know where to begin.
Splitting up the advertising and platform functions of these companies would result in ads that are more poorly targeted. It is hard to see how that benefits anyone — Google and Facebook, the consumer, or the ad-purchasing company.
Step further back: Shouldn’t any potential regulations on Google and Facebook be designed to address problems created by these companies? And if so, shouldn’t we clearly identify those problems before attempting to put in place 1930s-era regulatory solutions? (Solutions that have since been discarded.)
I can see a role for modest, additional regulation in how Google and Facebook shape the information citizens consume, the public debate, and the democratic process.
Another frequently discussed issue is privacy regulation. I address this in my latest Bloomberg column:
The role of personal responsibility seems to get lost in the discussion. Users bear responsibility for their public behavior on the internet — including what they type into a search bar and what apps they allow to access their Facebook accounts — and for protecting their private information.
But I do not see any compelling evidence to support the idea that these companies are stifling market competition and should be broken up under antitrust laws. Again, from my column:
Facebook has been showing signs of trouble. According to a study by Edison Research released last week, the company has reportedly lost 15 million users since 2017, with the biggest drop among people ages 12 to 34. Politicians who profess to worry about Facebook’s perpetual dominance should take notice.
Check out my entire column here. Your comments, as always, are welcome.