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Wanna Make Big Tech Monopolies Even Worse? Kill Section 230

24 May 2024 at 10:00

It’s no fun when your friends ask you to take sides in their disputes. The plans for every dinner party, wedding, and even funeral arrive at a juncture where you find yourself thinking, “Dang, if I invite her, then he won’t come.”

It’s even less fun when you’re running an online community, from a groupchat to a Mastodon server (or someday, a Bluesky server), or any other (increasingly cheap and easy) space where your friends (and their friends) can hang out online, far from the unquenchable dumpster-fires of Big Tech social media.

But there’s a circle of hell that’s infinitely worse than being asked to choose sides in a flamewar: being threatened with a lawsuit for refusing to do so (or even for complying with one side’s request over the other).

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Tell Congress: Ending Section 230 Will Hurt Users

At EFF, we’ve had decades of direct experience with the, uh, heated rhetoric that attends online disputes (there’s a reason the most famous law about online arguments was coined by the very first person EFF ever hired).

That’s one of the reasons we’re such big fans of Section 230 (47 U.S.C. § 230), a much-maligned, badly misunderstood law that protects people who run online services from being dragged into legal disputes between their users.

Getting sued can profoundly disrupt your life, even if you win. Much of the time, people on the receiving end of legal threats are forced to settle because they can’t afford to defend themselves in court. There's a whole cottage industry of legal bullies who’ll help the thin-skinned, vindictive and deep-pocketed to silence their critics.

That’s why we were so alarmed to see a bill introduced in the House Energy and Commerce Committee that would sunset Section 230 as of December 31, 2025, with no provision to protect online service providers from being conscripted into their users’ online disputes and the legal battles that arise from them.

Homely places on the internet aren’t just a curiosity anymore, nor are they merely a hangover from the Web 1.0 era.

In an age of resurgent anti-monopoly activism, small online communities, either standing on their own, or joined in loose “federations,” are the best chance we have to escape Big Tech’s relentless surveillance and clumsy, unaccountable control.

Look, running online communities is already a thankless task that can convert a generous digital host into a bitter ex-online host.

The alternatives to Big Tech come from individuals, co-ops, nonprofits and startups. These cannot exist in a world where we change the law to make people who offer a space where communities may gather vulnerable to being dragged into lawsuits between their community members.

It’s one thing to volunteer your time and resources to create a hospitable place online; it’s another thing entirely to assume an uninsurable risk that could jeopardize your life’s savings, your home, and your retirement fund. Defending against a single such case can cost hundreds of thousands of dollars.

That’s very bad news indeed, because a world without Section 230 will desperately need alternatives to Big Tech.

Big Tech has deep pockets, which means that even if it creates a system of hair-trigger moderation that takes down anything remotely controversial on sight, it will still attract a staggering number of legal threats.

There’s a useful analogy here to FTX, the disgraced, fraudulent cryptocurrency exchange. Like Big Tech, FTX has some genuinely aggrieved users, but FTX has also been targeted by opportunistic treasure hunters who have laid claims against the company totaling 23.6 quintillion dollars.

We know what Big Tech will do in a post-230 world, because some of us are already living in that world. Donald Trump signed SESTA-FOSTA into law in 2018. The law was billed as a narrowly targeted measure to make platforms liable for failing to intervene in cases where they were aware of human trafficking. In practice, the law has been used to indiscriminately target consensual sex work, placing sex workers in harm’s way (just as we predicted).

Without Section 230, Big Tech will shoot first, ask questions later when it comes to taking down controversial online speech (like #MeToo or Black Lives Matter). For marginalized users with little social power (again, like #MeToo or Black Lives Matter participants), Big Tech takedowns will be permanent, because Big Tech has no incentive to figure out whether it’s worth hosting their speech.

Meanwhile, for the wealthy and powerful, a post-230 world is one where dictators, war criminals, and fraudsters will have a new, powerful tool to silence their critics.

A post-230 world, in other words, is a world where Big Tech is infinitely worse for the users who already suffer most from the large platforms’ moderation failures.

But it’s also a world where it’s infinitely harder to start an alternative to Big Tech’s gigantic walled gardens.

No wonder tech billionaires support getting rid of Section 230: they understand that their overgrown, universally loathed services are vulnerable to real alternatives.

Four years ago, the Biden Administration declared that promoting competition was a whole-of-government priority (and we cheered). Getting rid of Section 230 will do the opposite: freeze the internet in its current, monopolized state, creating a world where the rule of today’s tech barons is never challenged by a more democratic, user-centric internet.

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Ending Section 230 Will Make Big Tech Monopolies Even Worse

Big Tech to EU: "Drop Dead"

13 May 2024 at 13:02

The European Union’s new Digital Markets Act (DMA) is a complex, many-legged beast, but at root, it is a regulation that aims to make it easier for the public to control the technology they use and rely on.  

One DMA rule forces the powerful “gatekeeper” tech companies to allow third-party app stores. That means that you, the owner of a device, can decide who you trust to provide you with software for it.  

Another rule requires those tech gatekeepers to offer interoperable gateways that other platforms can plug into - so you can quit using a chat client, switch to a rival, and still connect with the people you left behind (similar measures may come to social media in the future). 

There’s a rule banning “self-preferencing.” That’s when platforms push their often inferior, in-house products and hide superior products made by their rivals. 

And perhaps best of all, there’s a privacy rule, reinforcing the eight-year-old General Data Protection Regulation, a strong, privacy law that has been flouted  for too long, especially by the largest tech giants. 

In other words, the DMA is meant to push us toward a world where you decide which software runs on your devices,  where it’s easy to find the best products and services, where you can leave a platform for a better one without forfeiting your social relationships , and where you can do all of this without getting spied on. 

If it works, this will get dangerously close to better future we’ve spent the past thirty years fighting for. 

There’s just one wrinkle: the Big Tech companies don’t want that future, and they’re trying their damndest to strangle it in its cradle.

 Right from the start, it was obvious that the tech giants were going to war against the DMA, and the freedom it promised to their users. Take Apple, whose tight control over which software its customers can install was a major concern of the DMA from its inception.

Apple didn’t invent the idea of a “curated computer” that could only run software that was blessed by its manufacturer, but they certainly perfected it. iOS devices will refuse to run software unless it comes from Apple’s App Store, and that control over Apple’s customers means that Apple can exert tremendous control over app vendors, too. 

 Apple charges app vendors a whopping 30 percent commission on most transactions, both the initial price of the app and everything you buy from it thereafter. This is a remarkably high transaction fee —compare it to the credit-card sector, itself the subject of sharp criticism for its high 3-5 percent fees. To maintain those high commissions, Apple also restricts its vendors from informing their customers about the existence of other ways of paying (say, via their website) and at various times has also banned its vendors from offering discounts to customers who complete their purchases without using the app.  

Apple is adamant that it needs this control to keep its customers safe, but in theory and in practice, Apple has shown that it can protect you without maintaining this degree of control, and that it uses this control to take away your security when it serves the company’s profits to do so. 

Apple is worth between two and three trillion dollars. Investors prize Apple’s stock in large part due to the tens of billions of dollars it extracts from other businesses that want to reach its customers. 

The DMA is aimed squarely at these practices. It requires the largest app store companies to grant their customers the freedom to choose other app stores. Companies like Apple were given over a year to prepare for the DMA, and were told to produce compliance plans by March of this year. 

But Apple’s compliance plan falls very short of the mark: between a blizzard of confusing junk fees (like the €0.50 per use “Core Technology Fee” that the most popular apps will have to pay Apple even if their apps are sold through a rival store) and onerous conditions (app makers who try to sell through a rival app store are have their offerings removed from Apple’s store, and are permanently  banned from it), the plan in no way satisfies the EU’s goal of fostering competition in app stores. 

That’s just scratching the surface of Apple’s absurd proposal: Apple’s customers will have to successfully navigate a maze of deeply buried settings just to try another app store (and there’s some pretty cool-sounding app stores in the wings!), and Apple will disable all your third-party apps if you take your phone out of the EU for 30 days. 

Apple appears to be playing a high-stakes game of chicken with EU regulators, effectively saying, “Yes, you have 500 million citizens, but we have three trillion dollars, so why should we listen to you?” Apple inaugurated this performance of noncompliance by banning Epic, the company most closely associated with the EU’s decision to require third party app stores, from operating an app store and terminating its developer account (Epic’s account was later reinstated after the EU registered its disapproval). 

It’s not just Apple, of course.  

The DMA includes new enforcement tools to finally apply the General Data Privacy Regulation (GDPR) to US tech giants. The GDPR is Europe’s landmark privacy law, but in the eight years since its passage, Europeans have struggled to use it to reform the terrible privacy practices of the largest tech companies. 

Meta is one of the worst on privacy, and no wonder: its entire business is grounded in the nonconsensual extraction and mining of billions of dollars’ worth of private information from billions of people all over the world. The GDPR should be requiring Meta to actually secure our willing, informed (and revocable) consent to carry on all this surveillance, and there’s good evidence that more than 95 percent of us would block Facebook spying if we could. 

Meta’s answer to this is a “Pay or Okay” system, in which users who do not consent to Meta’s surveillance will have to pay to use the service, or be blocked from it. Unfortunately for Meta, this is prohibited (privacy is not a luxury good that only the wealthiest should be afforded).  

Just like Apple, Meta is behaving as though the DMA permits it to carry on its worst behavior, with minor cosmetic tweaks around the margins. Just like Apple, Meta is daring the EU to enforce its democratically enacted laws, implicitly promising to pit its billions against Europe’s institutions to preserve its right to spy on us. 

These are high-stakes clashes. As the tech sector grew more concentrated, it also grew less accountable, able to substitute lock-in and regulatory capture for making good products and having their users’ backs. Tech has found new ways to compromise our privacy rights, our labor rights, and our consumer rights - at scale. 

After decades of regulatory indifference to tech monopolization, competition authorities all over the world are taking on Big Tech. The DMA is by far the most muscular and ambitious salvo we’ve seen. 

Seen in that light, it’s no surprise that Big Tech is refusing to comply with the rules. If the EU successfully forces tech to play fair, it will serve as a starting gun for a global race to the top, in which tech’s ill-gotten gains - of data, power and money - will be returned to the users and workers from whom that treasure came. 

The architects of the DMA and DSA foresaw this, of course. They’ve announced investigations into Apple, Google and Meta, threatening fines of 10 percent of the companies’ global income, which will double to 20 percent if the companies don’t toe the line. 

It’s not just Big Tech that’s playing for all the marbles - it’s also the systems of democratic control and accountability. If Apple can sabotage the DMA’s insistence on taking away its veto over its customers’ software choices, that will spill over into the US Department of Justice’s case over the same issue, as well as the cases in Japan and South Korea, and the pending enforcement action in the UK. 

 

 

Privacy First and Competition

6 March 2024 at 13:09

Privacy First” is a simple, powerful idea: seeing as so many of today’s technological problems are also privacy problems, why don’t we fix privacy first?

Whether you’re worried about kids’ mental health, or tech’s relationship to journalism, or spying by foreign adversaries, or reproductive rights, or AI deepfakes, or nonconsensual pornography, you’re worried about a problem rooted in the primitive, deplorable state of American privacy law.

It’s really impossible to overstate how bad the state of federal privacy law is in America. The last time the USA got a big, muscular, broadly applicable new consumer privacy law, the year was 1988, and the law was targeted at video-store clerks who leaked your VHS rental history.

It’s been a minute. America is long overdue for a strong, comprehensive privacy law

A new privacy law will help us with all those issues, and more. It would level the playing field between giants with troves of user data and startups who want to build something better. Such a law would keep competition from becoming a race to the bottom on user privacy.

Importantly, a strong privacy law will go a long way to improving the dismal state of competition in America’s ossified and decaying tech sector.

Take the tech sector’s relationship to the news media. The ad-tech duopoly has rigged the advertising market and takes $0.51 out of every advertising dollar. Without their vast troves of nonconsensually harvested personal data, Meta and Google wouldn’t be able to misappropriate billions from the publishers. Banning surveillance advertising wouldn’t just be good for our privacy - it would give publishers leverage to shift those billions back onto their own balance sheets. 

Undoing market concentration will require interoperability so that users can move from dominant services to new, innovative rivals without losing their data and relationships. The biggest challenge to interoperability? Privacy. Every time a user moves from one service to another, the resulting data-flows create risks for those users and their friends, families, customers and other social connections. Congress knows this, which is why every proposed interoperability law incorporates its own little privacy law. Privacy shouldn’t be an afterthought in a tech regulation. A standalone privacy law would give lawmakers the freedom to promote interoperability without having to work out a new privacy system for each effort.

That’s also true of Right to Repair laws: these laws are routinely opposed by tech monopolists who insist that giving Americans the right to choose their own repair shop or parts exposes them to privacy risks. It’s true that our devices harbor vast troves of sensitive information - but that doesn’t mean we should let Big Tech (or Big Car) monopolize repair. Instead, we should require everyone - both original manufacturers and independent repair shops - to honor your privacy.

America’s legal privacy vacuum is largely the result of the commercial surveillance industry’s lobbying power. Increasing competition in the tech sector won’t just help our privacy: it’ll also weaken tech’s lobbying power, which is a function of the vast profits that can be extracted in the absence of “wasteful competition” and the ease with which a concentrated sector can converge on a common lobbying position. 

That’s why EFF has urged the FTC and DOJ to consider privacy impacts when scrutinizing proposed mergers: not just to protect internet users from the harms of surveillance business models, but to protect democracy from the corrupting influence of surveillance cartels.

Privacy isn’t dead. Far from it. For a quarter of a century, would-be tech monopolists have been insisting that we have no privacy and telling us to “get over it.” The vast majority of the public wants privacy and will take it if offered, and grab it if it’s not.  

Whenever someone tells you that privacy is dead, they’re just wishcasting. What they mean is: “If I can convince you privacy is dead, I can make more money at your expense.”

Monopolists want us to believe that their power over our lives is inevitable and unchangeable, just as the surveillance industry banks on convincing you that the fight for privacy was and always will be a lost cause. But we once had a better internet, and we can get a better internet again. The fight for that better internet starts with privacy, a battle that we all want to win.




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