President Trump warns Google, Facebook, and Twitter that these tech titans now tread on troublesome territory.

Daphne Basel

2018-08-25 12:33:00 Sat ET

President Trump warns Google, Facebook, and Twitter that these tech titans now tread on troublesome territory. Specifically, Trump accuses Google of rigging web search results for Trump news stories in the form of partisan biases against him. Anecdotal evidence suggests that Google tends to present more aggressive left-wing news stories from CNN, CNBC, Bloomberg, TIME, Reuters, Washington Post, New York Times, and so forth (but not from right-wing outlets such as Fox, Forbes, Wall Street Journal, and National Review). As Google now controls about 90% of U.S. Internet search traffic, this search engine has become substantially close to a tech monopoly. Google's current online search market dominance may cause anti-competitive ripple effects on several other search engines such as Bing, Baidu, and Yahoo. In recent times, several tech observers and commentators predict that Google may become the next Microsoft in antitrust lawsuits.

Facebook CEO Zuckerberg testifies and survives the key U.S. congressional Q&A ordeal in April 2018, but now the social media platform experiences sharp share price and profit declines in August 2018.

These platform orchestrators have become so powerful and influential nowadays that the Trump administration either has to break up these tech titans or needs to heavily regulate them.

In the former case, the parent company Alphabet may spin off its most profitable subsidiary Google to deflect draconian regulatory fines and penalties. In fact, the European Union imposes a punitive fine on Google's tax avoidance, but this fine amounts to about its one-off one-month average net profit in Europe.

In the latter case, the Trump administration may regulate Google, Facebook, and Twitter as social media firms or Internet publishers that specialize in online content curation. The heavy hand can come in the form of new regulatory standards for attempting to deter fake news, partisan biases, and even key risks of exposure to foreign interference.

However, raising the bar inadvertently erects barriers to entry and then further reinforces their technological dominance. The law of inadvertent consequences counsels caution in the midst of substantial economic policy uncertainty under the Trump administration.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Yale macro economist Stephen Roach draws 3 major conclusions with respect to the Chinese long-run view of the current tech trade conflict with America.

Joseph Corr

2019-09-05 09:26:00 Thursday ET

Yale macro economist Stephen Roach draws 3 major conclusions with respect to the Chinese long-run view of the current tech trade conflict with America.

Yale macro economist Stephen Roach draws 3 major conclusions with respect to the Chinese long-run view of the current tech trade conflict with America. Firs

+See More

President Trump may reluctantly sign the congressional border wall deal in order to avert another U.S. government shutdown.

Apple Boston

2019-02-13 11:00:00 Wednesday ET

President Trump may reluctantly sign the congressional border wall deal in order to avert another U.S. government shutdown.

President Trump may reluctantly sign the congressional border wall deal in order to avert another U.S. government shutdown. With his executive power to decl

+See More

Corporate investment insights from mergers and acquisitions

Joseph Corr

2022-10-25 11:31:00 Tuesday ET

Corporate investment insights from mergers and acquisitions

Corporate investment insights from mergers and acquisitions Relative market misvaluation between the bidder and target firms drives most waves of mergers

+See More

The Economist suggests that the world has learned few lessons of the global financial crisis from 2008 to 2009.

Becky Berkman

2018-09-07 07:33:00 Friday ET

The Economist suggests that the world has learned few lessons of the global financial crisis from 2008 to 2009.

The Economist re-evaluates the realistic scenario that the world has learned few lessons of the global financial crisis from 2008 to 2009 over the past deca

+See More

The financial crisis of 2008-2009 affects many millennials as they bear the primary costs of college tuition, residential demand, health care, and childcare.

Peter Prince

2019-06-23 08:30:00 Sunday ET

The financial crisis of 2008-2009 affects many millennials as they bear the primary costs of college tuition, residential demand, health care, and childcare.

The financial crisis of 2008-2009 affects many millennials as they bear the primary costs of college tuition, residential demand, health care, and childcare

+See More

Snap cannot keep up with the Kardashians because its stock loses $1 billion market value after Kylie Jenner tweets about her decision to leave Snapchat.

Monica McNeil

2018-02-19 08:39:00 Monday ET

Snap cannot keep up with the Kardashians because its stock loses $1 billion market value after Kylie Jenner tweets about her decision to leave Snapchat.

Snap cannot keep up with the Kardashians because its stock loses market value 7% or $1 billion after Kylie Jenner tweets about her decision to leave Snapcha

+See More