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Showing 9 of 226 Results in Intermediary Liability

An L&E Defense of the First Amendment’s Protection of Private Ordering

TOTM In his recent concurrence in Biden v. Knight, Justice Clarence Thomas sketched a roadmap for how to regulate social-media platforms. The animating factor for Thomas, . . .

In his recent concurrence in Biden v. Knight, Justice Clarence Thomas sketched a roadmap for how to regulate social-media platforms. The animating factor for Thomas, much like for other conservatives, appears to be a sense that Big Tech has exhibited anti-conservative bias in its moderation decisions, most prominently by excluding former President Donald Trump from Twitter and Facebook. The opinion has predictably been greeted warmly by conservative champions of social-media regulation, who believe it shows how states and the federal government can proceed on this front.

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Innovation & the New Economy

Apple v Epic: The Value of Closed Systems

TL;DR Background… Apple Inc. and Epic Games are currently locked in a high-stakes antitrust dispute. Epic is challenging Apple’s rules that require apps to use Apple . . .

Background…

Apple Inc. and Epic Games are currently locked in a high-stakes antitrust dispute. Epic is challenging Apple’s rules that require apps to use Apple Pay for in-app purchases and that ban alternative app stores from iOS devices like iPhones and iPads. 

The suit is part Epic’s broader strategy, dubbed Project Liberty, to pay lower fees to online platforms. If it succeeds, Epic would be able to steer its users toward lower-priced payment processors. This would increase the competitive constraints that Apple faces when it sets platform fees.

But…

Epic’s proposals would allow large developers and rival payment processors to get the benefit of Apple’s investments in iOS and the App Store without paying for them. It could also undermine other online platforms that rely on commissions to earn a positive return on their upfront investments. This could shrink investments in platform creation and upkeep, hurting users and leading to worse platforms overall.

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Antitrust & Consumer Protection

The FTC Did Not ‘Fumble the Future’ in Its Google Search Investigation

TOTM In the final analysis, what the revelations do not show is that the FTC’s market for ideas failed consumers a decade ago when it declined to bring an antitrust suit against Google.

Politico has released a cache of confidential Federal Trade Commission (FTC) documents in connection with a series of articles on the commission’s antitrust probe into Google Search a decade ago. The headline of the first piece in the series argues the FTC “fumbled the future” by failing to follow through on staff recommendations to pursue antitrust intervention against the company. 

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Antitrust & Consumer Protection

Committee Prepares to Grill Tech CEOS, but It Is the First Amendment That Could Get Torched

TOTM In what has become regularly scheduled programming on Capitol Hill, Facebook CEO Mark Zuckerberg, Twitter CEO Jack Dorsey, and Google CEO Sundar Pichai will be . . .

In what has become regularly scheduled programming on Capitol Hill, Facebook CEO Mark Zuckerberg, Twitter CEO Jack Dorsey, and Google CEO Sundar Pichai will be subject to yet another round of congressional grilling—this time, about the platforms’ content-moderation policies—during a March 25 joint hearing of two subcommittees of the House Energy and Commerce Committee.

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Innovation & the New Economy

Ben Sperry on online speech

Presentations & Interviews ICLE Associate Director of Legal Research Ben Sperry joined Chetachi Egwu’s MediaScope podcast to talk about online speech, the First Amendment, and federal and state . . .

ICLE Associate Director of Legal Research Ben Sperry joined Chetachi Egwu’s MediaScope podcast to talk about online speech, the First Amendment, and federal and state efforts to regulate speech on platforms. The full episode can be played below.

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Innovation & the New Economy

Lawmaking and Legislative Procedure in the European Union

TL;DR The process of writing and passing laws in the European Union primarily involves three institutions: the European Commission, the European Parliament, and the Council of the EU. The Commission proposes legislation, and the Parliament and the Council approve, amend, or reject it.

Background…

The process of writing and passing laws in the European Union primarily involves three institutions: the European Commission, the European Parliament, and the Council of the EU. The Commission proposes legislation, and the Parliament and the Council approve, amend, or reject it.

The Parliament is the EU’s legislature. It represents all EU citizens and is directly elected by them. The Council of the European Union represents the governments of the individual member states. The European Commission is the EU’s politically independent executive body responsible for drawing up proposals for new European legislation and ensuring, together with the Court of Justice, that these laws are properly applied by member states. It consists of one commissioner from each member state, for a total of 27.

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Antitrust & Consumer Protection

Consumer Welfare Standard

TL;DR Returning to a pre-Consumer Welfare Standard state of the law would lead antitrust enforcement to become confused, contradictory, and ineffective at promoting competition. The CWS makes antitrust economically coherent and democratically accountable.

Background…

In antitrust law, the Consumer Welfare Standard (CWS) directs courts to focus on the effects that challenged business practices have on consumers, rather than on alleged harms to specific competitors. Critics of the standard claim this focus on consumer welfare fails to capture a wide variety of harmful conduct. In addition to believing that harm to competitors is itself a valid concern, critics of the CWS believe it leads to harmful concentrations of political and economic power by biasing antitrust enforcement against intervention. Under this view, the CWS contributes to such harms as environmental degradation, income inequality, and bargaining disparities for labor. 

But…

Returning to a pre-CWS state of the law would lead antitrust enforcement to become confused, contradictory, and ineffective at promoting competition. The CWS makes antitrust economically coherent and democratically accountable.

However…

The CWS is agnostic about how much antitrust enforcement is necessary. Indeed, many advocates of more vigorous antitrust enforcement are also defenders of the CWS. The standard uses objective economic analysis to identify actual harms and to recommend remedies when those harms are not outweighed by countervailing benefits to consumers. While the issues the CWS critics care about may be important, antitrust law is a bad way to address them.

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Antitrust & Consumer Protection

Comments to FTC: ANPR Concerning Future Amendments to the HSR Rules

Regulatory Comments ICLE comments filed Feb. 1, 2021, to the U.S. Federal Trade Commission in response to the FTC's Advance Notice of Public Rulemaking concerning future amendments to the premerger notification rules under the Hart-Scott-Rodino Antitrust Improvements Act.

We thank the Commission for the opportunity to comment on its Advance Notice of Proposed Rulemaking (“ANPRM”) concerning future amendments to the premerger notification rules under the Hart-Scott-Rodino Antitrust Improvements Act (“HSR’’).

The International Center for Law and Economics (ICLE) is a nonprofit, nonpartisan research center whose work promotes the use of law & economics methodologies to inform public policy debates. We believe that intellectually rigorous, data-driven analysis will lead to efficient policy solutions that promote consumer welfare and global economic growth.

ICLE’s scholars have written extensively on competition and consumer protection policy. Some of our writings are included as references in the comment below. Additional materials may be found at our website: www.laweconcenter.org.

Our comment argues that the FTC’s rulemaking initiatives should be informed by the error-cost framework. As we explain, the framework offers several key insights that authorities should carefully consider when reviewing existing merger rules and guidance.

Among other things, it demonstrates that the societal costs stemming  from false negatives (i.e. anticompetitive mergers that evade antitrust enforcement) are inextricably linked to those that originate from false positives (efficient mergers that are prohibited or deterred) and administrative costs (the social costs that are created by the operation of a given regulatory regime). As a result, any attempt to reduce one of these costs necessary entails a tradeoff as far as the others are concerned. All three costs should thus be considered together.

In short, we urge the FTC to take a holistic view when updating HSR rules and interpretations of those rules. In particular, it is important to consider the overall welfare costs of new rules, and not just their ability to plug existing enforcement gaps.

Read the full comments here.

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Antitrust & Consumer Protection

The Digital Markets Act

TL;DR The European Union has unveiled draft legislation that seeks to tame so-called “gatekeeper” Big Tech firms. If passed into law, this Digital Markets Act (“DMA”) would create a list of “dos and don’ts” by which the platforms must abide, such as allowing interoperability with third parties and sharing data with rivals.

Background…

The European Union has unveiled draft legislation that seeks to tame so-called “gatekeeper” Big Tech firms. If passed into law, this Digital Markets Act (“DMA”) would create a list of “dos and don’ts” by which the platforms must abide, such as allowing interoperability with third parties and sharing data with rivals. In short, the DMA would give the European Commission significant powers to tell tech companies how to run their businesses.

But…

The DMA essentially shifts competition enforcement against gatekeeper platforms away from an “effects” analysis that weighs costs and benefits to a “blacklist” approach that proscribes all listed practices as harmful. This will constrain platforms’ ability to experiment with new products and make changes to existing ones, limiting their ability to innovate and compete.

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Antitrust & Consumer Protection