Fines levied against Big Tech from ex-post competition investigations have totalled more than £14bn since 2017. But competition authorities are now gaining powers to prevent anti-competitive conduct ex-ante, rather than wait to intervene once it’s happened
The increasing importance of data in antitrust reform
Ongoing initiatives of antitrust reform have three things in common. Firstly, data is increasingly seen as an asset that can determine whether a market is competitive or not, and could represent a barrier to entry; secondly, authorities demand stronger powers to monitor big tech and act against them, sometimes even ex-ante; and thirdly, markets are increasingly seen as global rather than national in scope. But it remains unclear whether all governments will follow through with legislation.
The FTC has been the toughest on Facebook so far, but it may not be enough
The fine approved by the FTC against Facebook on 24 July 2019 amounts to almost $5bn. It is far higher than any fine issued in the EU under GDPR so far, and could have been even higher, with Mark Zuckerberg also held personally accountable for the company’s conduct.
Even a more privacy-focused Facebook will face regulatory hurdles
The note published by Mark Zuckerberg on 6 March 2019 sets out the new approach Facebook aims to take for its communications services. It will be more focused on privacy and less on public sharing compared to the past, reflecting on new demands of the market and taking on board some of the lessons of the past.
Antitrust is the latest headache for Facebook and Big Tech
Recent cases have seen competition regulators intervening against tech giants, Facebook in particular. The most recent is a ruling in Germany, where the competition watchdog did not issue a fine, but instead ordered Facebook to stop practices which are a key part of the company’s business model. This, alongside other ongoing cases, could be a signal of a new regulatory trend.
Facebook should let Nick Clegg influence things in two ways
Today is the first day for former UK Deputy Prime Minister, Nick Clegg, as Facebook’s new head of global policy and communications. The move inevitably triggered contrasting reactions, but signals Facebook’s willingness to engage with institutions more constructively in the future.
Where next for the regulation of Facebook?
After the emergence of large-scale data breaches on Facebook’s platform, CEO Mark Zuckerberg accepted to appear before the respective parliamentary committees of the US Senate and Congress. The hearings highlighted that US politicians are now turning their attention to social media platforms, but have no coherent plan (and unclear intentions) on the measures to adopt. At the same time, there are clear indications that the EU’s GDPR will become a benchmark for data privacy worldwide.
Facebook’s privacy practices will now face thorough scrutiny
What started as criticism for not doing enough to spread disinformation online is now quickly escalating into inquiries about the way in which Facebook allows third parties to access its users’ data. Allegations that Facebook’s data have been misleadingly obtained, and used to profile approximately 50m users to run targeted political campaigns, have now prompted the Federal Trade Commission (FTC) to investigate the company’s privacy practices.
