The Oxford Dictionary defines capitalism as “an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.” A new poll on the topic from Harvard received some attention yesterday, garnering headlines about millennial’s view of capitalism. The poll is challenging to interpret given that most people likely have a connotative sense of capitalism, but helpfully Harvard dug a little deeper by interviewing a group of people regarding their view of capitalism. As it turns out those who were wary of capitalism were not so much rejecting it but rather were concerned that today it seems unfair and leaves some people out.
The European Commission has charged Alphabet-Google with abusing its dominance in the market for “general Internet search services,” by implementing an Android “strategy of mobile devices to preserve and strengthen its dominance in general Internet search.” The EU objects to a variety of secret Google contract conditions to manufacturer licenses to leverage the dominant (>90% share) Android OS to secretly restrict and foreclose competition in ways that ultimately harm consumer choice and innovation. The EU effectively charged that Google has already anticompetitively extended its >90% dominance in search to dominance in the >90% share of the “licensable smart mobile operating system,” and to dominance in the >90% share of the “app stores for the Android” market.
The Federal Communications Commission (FCC) describes itself thus: “An independent U.S. government agency overseen by Congress.” Under the Barack Obama Administration, it has been none of these things.
There is much bemoaning of the loss of bipartisanship in Washington, D.C. Gone, they say, are the grand bargains – the two Parties coming together to reach deals that solve problems. Such the loss, they say.
Net Neutrality is a really stupid, anti-capitalism policy – that the Barack Obama Administration’s Federal Communications Commission (FCC) unilaterally (and likely illegally) jammed down our throats in February 2015.
Network Neutrality is a really stupid, anti-capitalism policy – that outlaws on the Internet several basic, fundamental free market tenets that are in practice in every other sector of a functioning economy.
I’ve heard the following quote ascribed to National Basketball Association (NBA) player, coach and executive Pat Riley – but the Internet is not giving up the ghost on provenance to him or anyone else. As I recall, the recitation is: “That player is drowning in Lake Me.” Meaning a person who is totally self-absorbed. Transfixed by their own navel (which actually has a name – Omphaloskepsis). A person who finds himself endlessly fascinating – and utterly invaluable.
And that, in a nutshell, is the lion’s share of Google’s business model. And business – is booming. Google is worth a net $350 billion. The Gross Domestic Product (GDP) of Denmark – is $342 billion.
Few outside of Alphabet-Google understand the immense market, economic, and technological power of an unaccountable monopoly over the underlying software that controls most all mobile devices in the world. Fortunately EU antitrust enforcers are some of the few who understand it.
Looking backwards at 1934-era Title II telephone utility law, the FCC concluded in its 2015 Open Internet Order that only broadband providers could be “gatekeepers” warranting net neutrality regulation to “protect and promote the “virtuous cycle” that drives innovation and investment on the Internet.”
Google’s dominant search engine + its dominant Android operating system (OS) + its world-leading Chrome web browser + its uniquely-comprehensive, Internet utility functionality of193 products, services and tools = a virtual Google “Inner-net” regime.
Last week the Federal Bureau of Investigation (FBI) (i.e. the government) received a court order (i.e. from the government) that would force private computer giant Apple to write a program (a “backdoor”) to break the privacy-protecting encryption of their iPhone.
iven Google-YouTube, the world’s dominant Internet video distribution platform with ~1.6 billion viewers in 70 countries and 75 languages covering 95% of the world’s population, and given Google-Android is the world’s dominant mobile operating system with >80% share, the only thing Google lacks in the Internet video business is a willingness to pay a market-negotiated rate for the licenses and rights to use and profit from the world’s most valuable video content, and to be a responsible corporate steward to protect the premium content from the devaluation of piracy.
Let me try to explain to a consumer what the Federal Communications Commission (FCC) arbitrarily has done, and apparently intends to do, for consumer internet privacy protection going forward.
We free marketeers repeatedly reassert the obvious – that government abusing the private sector hurts the private sector. Pro-government fetishists try mightily to deny Reality – claiming that bigger government doesn’t damage the sectors over which it lords.
Net neutrality absolutists are overreaching yet again in their push for a practical FCC ban of ISP zero rating offers under the FCC’s case-by-case “General Conduct Standard” review, by claiming violations of the “bright-line rules” in the FCC’s 2015 Open Internet Order against blocking, throttling and paid prioritization.
Any and every tax, law and regulation – is government placing itself between you and the free market. And, conversely, between the free market and you. And, of course, it makes the market less free. It’s inherent. The bigger the tax – the less money you have for the market, and the less money marketeers have to operate. The bigger the laws and regulations – the less freedom we and the marketeers have to maneuver.
The Permanent Internet Tax Freedom Act (PITFA), receiving a large bi-partisan approval in the House of Representatives earlier this year, is supposedly going to be taken up in the Senate this week. The provision has been added into the conference report (the final version of a bill to be considered by both chambers of congress) of the Trade Facilitation and Trade Enforcement Act of 2015.
In the next several weeks, expect the EC’s Competition Directorate to decide that Google is in fact dominant with >90% share of Internet search in Europe and that Google has abused its search dominance by biasing its own Shopping service over competitors. It also could formally charge Google for abuse of its search dominance in contractually tying Google Search and other search-driven apps like Maps, YouTube, etc. to Android to extend its search dominance to mobile search and to the operating system market where Android now owns >80% share.
In arbitrarily applying Title II telecommunications rules to only the ISP half of Internet communications, while politically exempting the entire edge half of Internet communications in its Open Internet order, the FCC has ensured that information that was proprietary and controllable in the closed telephone world becomes public and uncontrollable in the open Internet world.