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As Phillips argues, “we’re not going to solve the climate crisis if people just stop drinking water out of water bottles. But we need to start minimizing the amount of pollution that’s even put into the landscape. It’s a place to start; it’s not the place to end.”

There may not be a one-size-fits-all analogy for platforms, but “horizontalizing” can help us to understand which solutions worked in other industries, which were under-ambitious and which had unintended consequences. Comparing horizontally also reminds us that the problems of how to regulate the online world are not unique, and will prove as difficult to resolve as those of other large industries.  

The key to vertical thinking is to figure out how not to lock in incumbents or to tilt the playing field even more toward them. We often forget that small rivals do exist, and our regulation should think about how to include them. This means fostering a market that has room for ponies and stable horses as well as unicorns.

Vertical thinking has started to spread in Washington, DC. In mid January, the antitrust subcommittee in Congress held a hearing with four smaller tech firms. All of them asked for regulatory intervention. The CEO of phone accessory maker PopSockets called Amazon’s behaviour “bullying with a smile.” Amazon purportedly ignored the selling of counterfeited PopSocket products on its platform and punished PopSocket for wanting to end its relationship with Amazon. Both Republicans and Democrats seemed sympathetic to smaller firms’ travails. The question is how to adequately address vertical concerns.

Without Improved Governance, Big Firms Will Weaponize Regulation

One is the question of intellectual property. Pa

Big companies can marshall an army of lawyers, which even medium-sized firms could never afford to do.

A second aspect to consider is sliding scales of regulation.

A third aspect is burden of proof. One option is to flip the present default and make big companies prove that they are not engaging in harmful behaviour

The EU head of antitrust, Margrethe Vestager, is considering whether to turn this on its head: in cases where the European Union suspects monopolistic behaviour, major digital platforms would have to prove that users benefit from their services.

Companies would have to prove gains, rather than Brussels having to prove damages. This change would relieve pressure on smaller companies to show harms. It would put obligations on companies such as Google, which Vestager sees as so dominant that she has called them “de facto regulators” in their markets. 

A final aspect to consider is possibly mandating larger firms to open up.

intellectual property infringement.

The Google/Equustek case is not one of permissionless innovation, but is still an example of a large internet intermediary taking the position that it can do as it damned well pleases because, after all, it operates in multiple jurisdictions—in fact it operates in cyberspace, where, according to some, normal regulatory practices and laws shouldn’t apply or we will “stifle innovation”.

One innovation that Google has instituted is to tweak its geolocation system

The excuse of “it’s not my fault; blame the algorithm”, also won’t fly anymore. Google’s algorithms are the “secret sauce” that differentiates it from its competitors, and the dominance of Google is proof of the effectiveness of its search formulae.

But scooping up every bit of information and interpreting what people want (or what Google thinks they want) through an algorithm has its downsides. A German court has found that Google cannot hide behind its algorithms when it comes to producing perverse search results

AI is great, until it isn’t, and there is no doubt that regulators will start to look at legal issues surrounding AI.

Companies like Google and Facebook will not be able to duck their responsibility just because results that are potentially illegal are produced by algorithms or AI

One area where human judgement is very much involved is in the placing of ads, although Youtube and others are quick to blame automated programs when legitimate ads appear alongside questionable or illegal content. Platforms have no obligation to accept ads as long as they don’t engage in non-competitive trade practices

Google has already learned its lesson on pharmaceutical products the hard way, having been fined $500 million in 2011 for running ads on its Adwords service from unlicenced Canadian online pharmacies illegally (according to US law) selling prescriptions to US consumers.

Google is a deep-pocketed corporation but it seems to have got the message when it comes to pharmaceuticals. What galls me is that if Google can remove Adwords placements promoting illegal drug products, why, when I google “watch pirated movies”, do I get an Adwords listing on page 1 of search that says “Watch HD Free Full Movies Online”.

At the end of the day whether it is Google, Facebook, Amazon, or any other major internet intermediary, the old wheeze that respect for privacy, respect for copyright and just plain old respect for the law in general gets in the way of innovation is being increasingly shown to be a threadbare argument.

What is interesting is that many cyber-libertarians who oppose any attempt to impose copyright obligations and publishing liability on internet platforms are suddenly starting to get nervous about misuse of data by these same platforms when it comes to privacy.

This is a remarkable revelation for someone who has not only advocated that Canada adopt in NAFTA the overly-broad US safe harbour provisions found in the Communications Decency Act, a provision that has been widely abused in the US by internet intermediaries as a way of ducking any responsibility for the content they make available, but who has consistently crusaded against any strengthening of copyright laws that might impose greater obligations on internet platforms.

proponents of reasonable internet regulation

The implications of cloud platforms such as Salesforce, Microsoft, Apple, Amazon and others differ again. A business built on a technology platform with a track record of well-developed data and model governance, audit capability, responsible product development practices and a culture and track record of transparency will likely reduce some risks related to biased data and model transparency, while encouraging (and even enforcing) adoption of those same practices and norms throughout its ecosystem.

policies that govern their internal practices for responsible technology development; guidance, tools and educational resources for their customers’ responsible use of their technologies; and policies (enforced in terms of service) that govern the acceptable use of not only their platforms but also specific technologies, such as face recognition or gait detection.

At the same time, overreliance on a small, well-funded, global group of technology vendors to set the agenda for responsible and ethical use of AI may create a novel set of risks.

Audit is another area that, while promising, is also fraught with potential conflict. Companies such as O’Neil Risk Consulting and Algorithmic Auditing, founded by the author of Weapons of Math Destruction, Cathy O’Neil, provide algorithmic audit and other services intended to help companies better understand and remediate data and model issues related to discriminatory outcomes. Unlike, for example, audits of financial statements, algorithmic audit services are as yet entirely voluntary, lack oversight by any type of governing board, and do not carry disclosure requirements or penalties. As a result, no matter how thorough the analysis or comprehensive the results, these types of services are vulnerable to manipulation or exploitation by their customers for “ethics-washing” purposes.

, we must broaden our understanding of platforms beyond social media sites to other types of business platforms, examine those risks in context, and approach governance in a way that accounts not only for the technologies themselves, but also for the disparate impacts among industries and business models.

This is a time-sensitive issue

arge technology companies — for a range of reasons — are trying to fill the policy void, creating the potential for a kind of demilitarized zone for AI, one in which neither established laws nor corporate policy hold sway.