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
The Trump team blocks Broadcom's bid for Qualcomm due to national security concerns and 5G telecom network issues.
James Campbell

2018-03-06 11:35:00 Tuesday ET

The Trump team blocks Broadcom's bid for Qualcomm due to national security concerns and 5G telecom network issues.

The Trump team blocks Broadcom's bid for Qualcomm due to national economic security concerns and 5G telecom network issues. Broadcom makes microchips fo

+See More
These famous quotes of self-made billionaires are inspirational words of wisdom on investment management.
Joseph Corr

2017-06-27 05:40:00 Tuesday ET

These famous quotes of self-made billionaires are inspirational words of wisdom on investment management.

These famous quotes of self-made billionaires are inspirational words of wisdom on financial management, innovation, and entrepreneurship. For financial

+See More
The current Trump stock market rally has been impressive from November 2016 to October 2017.
John Fourier

2017-10-09 09:34:00 Monday ET

The current Trump stock market rally has been impressive from November 2016 to October 2017.

The current Trump stock market rally has been impressive from November 2016 to October 2017. S&P 500 has risen by 21.1% since the 2016 presidential elec

+See More
Disruptive innovators compete against luck by figuring out why customers hire products and services to accomplish specific jobs.
John Fourier

2020-05-14 12:35:00 Thursday ET

Disruptive innovators compete against luck by figuring out why customers hire products and services to accomplish specific jobs.

Disruptive innovators can better compete against luck by figuring out why customers hire products and services to accomplish jobs. Clayton Christensen, T

+See More
Most lean enterprises should facilitate the dual transformation of both core assets with steady cash flows and new growth options.
John Fourier

2020-06-10 10:35:00 Wednesday ET

Most lean enterprises should facilitate the dual transformation of both core assets with steady cash flows and new growth options.

Most lean enterprises should facilitate the dual transformation of both core assets with fresh cash flows and new growth options. Scott Anthony, Clark Gi

+See More
Goldman Sachs takes a $5 billion net income hit that results from its offshore cash repatriation under the Trump tax law.
Charlene Vos

2018-01-02 12:39:00 Tuesday ET

Goldman Sachs takes a $5 billion net income hit that results from its offshore cash repatriation under the Trump tax law.

Goldman Sachs takes a $5 billion net income hit that results from its offshore cash repatriation under the new Trump tax law. This income hit reflects 10%-1

+See More