FREEDOM ON
THE NET 2021
The Global Drive to Control Big Tech
Germany passed similar provisions in a January 2021
Digitalization Act that grants the Federal Cartel Office (FCO)
greater authority to investigate companies’ behavior, with
a specific mandate to ascertain whether they are denying
interoperability, preinstalling apps, preventing competitors
from advertising, or failing to provide users with agency to
determine and understand how their data are processed.
After the passage of the law, the FCO launched investigations
into market behavior by Amazon, Apple, Facebook, and
Google. The UK Competition and Markets Authority
announced in June that it would play an active role in
shaping Google’s new Privacy Sandbox feature to ensure that
replacements for cookie tracking, meant to protect privacy,
do not harm competition.
Antimonopoly action also intensified in the United States.
Under new chairperson Lina Khan, the Federal Trade
Commission (FTC) has pursued more vigorous rulemaking
and lowered the threshold for staff to launch investigations
and sue companies. The Biden administration issued an
executive order in July that empowered the FTC and the
Department of Justice to more stringently enforce existing
antitrust laws, challenge previous mergers, and create new
rules addressing companies’ accumulation of Americans’
data. Separately, Google and Apple faced lawsuits over their
app store fees, and a bundle of antitrust bills that could
fundamentally reshape the US tech sector were introduced in
Congress this year.
South Korea’s Fair Trade Commission has been active over
the past year. In August 2020, Apple paid $84 million to
settle an antitrust case after an investigation found that the
company had abused its position of dominance by burdening
local businesses with iPhone-related costs. In April 2021,
the commission raided Facebook’s local offices as part of
a probe into whether the company forces app developers
to advertise solely on its platform. And in June 2021, a new
division was set up to investigate whether major companies
like Facebook and Google have engaged in unfair practices,
including the deceptive collection of personal data, to fuel
online advertising.
In May 2021, Argentina's National Commission for the
Defense of Competition ordered Facebook’s WhatsApp
platform to suspend the implementation of its new privacy
policy for at least 180 days. The measure was part of an
effort to ensure that the company does not “abuse its
dominant market position,” as the new policy would give
Facebook access to users’ data “at a level other companies
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cannot replicate.” Similar investigations into WhatsApp’s
privacy policy changes are underway in India.
Compelling platforms to share revenue
with publishers
Regulators in several countries sought to pressure tech
companies into negotiations with news publishers on the
sharing of profits from advertising revenue. Google agreed
in early 2021 to seek revenue-sharing agreements with
French publishers in compliance with a new copyright law,
but France’s antitrust agency imposed a €500 million ($600
million) fine in July on the grounds that the tech giant was
not negotiating in good faith. In May 2021, Facebook agreed
to share revenue with 14 Canadian publishers.
In Australia, a News Media Bargaining Code that was adopted
in February 2021 raised tensions among major publishers,
tech companies, and the government. The rules came
about after the country’s competition watchdog found that
technology companies were not treating domestic media
organizations fairly. The code establishes an arbitration
regime requiring designated platforms to negotiate and pay
a narrowly defined set of news outlets when their content
is used. While competition policy can play a role in ensuring
media diversity and sustainability, the Australian measure
privileges legacy media institutions at the expense of newer,
smaller, and more local outlets, and it does not stipulate that
the beneficiaries must use the new revenue for journalistic
purposes. The code also obliges platforms to share user
data with media organizations, further embedding the news
industry in the problematic targeted-advertising industry.
In response to the flawed legislation, Facebook took the
extraordinary decision to block all news content for users
based in Australia for one week. The move restricted access
to community groups, health information, and other essential
services in the process. Eventually, Facebook lifted the
ban after the government made amendments to the code
designed to extend revenue-sharing negotiations.
Competition policy as a tool for
regime empowerment
In authoritarian states and other countries that lack effective
due process guarantees, competition enforcement carries a
stronger risk of abuse. Although monopolistic corporations
and unfair market practices are just as corrosive to users’
rights in such countries as they are in democracies, several
cases demonstrate the potential for competition policy to
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