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

Top money managers George Soros and Warren Buffett reveal their current stock and bond positions.

Dan Rochefort

2018-05-10 07:37:00 Thursday ET

Top money managers George Soros and Warren Buffett reveal their current stock and bond positions.

Top money managers George Soros and Warren Buffett reveal their current stock and bond positions in their recent corporate disclosures as of mid-2018. Georg

+See More

Trumpism may now become the new populist world order of economic governance.

Monica McNeil

2018-07-30 11:36:00 Monday ET

Trumpism may now become the new populist world order of economic governance.

Trumpism may now become the new populist world order of economic governance. Populist support contributes to Trump's 2016 presidential election victory

+See More

Agile lean enterprises break down organizational silos to promote smart collaboration for better profitability and customer loyalty.

Laura Hermes

2020-11-03 08:30:00 Tuesday ET

Agile lean enterprises break down organizational silos to promote smart collaboration for better profitability and customer loyalty.

Agile lean enterprises break down organizational silos to promote smart collaboration for better profitability and customer loyalty. Heidi Gardner (2017

+See More

Apple shakes up senior leadership to initiate a new transition from iPhone revenue reliance to media and software services.

John Fourier

2019-02-21 12:37:00 Thursday ET

Apple shakes up senior leadership to initiate a new transition from iPhone revenue reliance to media and software services.

Apple shakes up senior leadership to initiate a new transition from iPhone revenue reliance to media and software services. These changes include the key pr

+See More

Senator Elizabeth Warren proposes breaking up key tech titans such as Facebook, Apple, Microsoft, Google, and Amazon (FAMGA).

Becky Berkman

2019-03-21 12:33:00 Thursday ET

Senator Elizabeth Warren proposes breaking up key tech titans such as Facebook, Apple, Microsoft, Google, and Amazon (FAMGA).

Senator Elizabeth Warren proposes breaking up key tech titans such as Facebook, Apple, Microsoft, Google, and Amazon (FAMGA). These tech titans have become

+See More

President Trump's current trade policies appear like the Reagan administration's protectionist trade policies back in the 1980s.

Apple Boston

2018-07-03 11:42:00 Tuesday ET

President Trump's current trade policies appear like the Reagan administration's protectionist trade policies back in the 1980s.

President Trump's current trade policies appear like the Reagan administration's protectionist trade policies back in the 1980s. In comparison to th

+See More