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The opening panel of the Stigler Center’s annual antitrust conference discussed the source of digital platforms’ power and what, if anything, can be done to address the numerous challenges their ability to shape opinions and outcomes present. 

Google CEO Sundar Pichai caused a worldwide sensation earlier this week when he unveiled Duplex, an AI-driven digital assistant able to mimic human speech patterns (complete with vocal tics) to such a convincing degree that it managed to have real conversations with ordinary people without them realizing they were actually talking to a robot.   While Google presented Duplex as an exciting technological breakthrough, others saw something else: a system able to deceive people into believing they were talking to a human being, an ethical red flag (and a surefire way to get to robocall hell). Following the backlash, Google announced on Thursday that the new service will be designed “with disclosure built-in.” Nevertheless, the episode created the impression that ethical concerns were an “after-the-fact consideration” for Google, despite the fierce public scrutiny it and other tech giants faced over the past two months. “Silicon Valley is ethically lost, rudderless and has not learned a thing,” tweeted Zeynep Tufekci, a professor at the University of North Carolina at Chapel Hill and a prominent critic of tech firms.   The controversial demonstration was not the only sign that the global outrage has yet to inspire the profound rethinking critics hoped it would bring to Silicon Valley firms. In Pichai’s speech at Google’s annual I/O developer conference, the ethical concerns regarding the company’s data mining, business model, and political influence were briefly addressed with a general, laconic statement: “The path ahead needs to be navigated carefully and deliberately and we feel a deep sense of responsibility to get this right.”

Google’s fellow FAANGs also seem eager to put the “techlash” of the past two years behind them. Facebook, its shares now fully recovered from the Cambridge Analytica scandal, is already charging full-steam ahead into new areas like dating and blockchain.   But the techlash likely isn’t going away soon. The rise of digital platforms has had profound political, economic, and social effects, many of which are only now becoming apparent, and their sheer size and power makes it virtually impossible to exist on the Internet without using their services. As Stratechery’s Ben Thompson noted in the opening panel of the Stigler Center’s annual antitrust conference last month, Google and Facebook—already dominating search and social media and enjoying a duopoly in digital advertising—own many of the world’s top mobile apps. Amazon has more than 100 million Prime members, for whom it is usually the first and last stop for shopping online.   Many of the mechanisms that allowed for this growth are opaque and rooted in manipulation. What are those mechanisms, and how should policymakers and antitrust enforcers address them? These questions, and others, were the focus of the Stigler Center panel, which was moderated by the Economist’s New York bureau chief, Patrick Foulis.

Google plans to stop selling ads based on individuals’ browsing across multiple websites, a change that could hasten upheaval in the digital advertising industry. The Alphabet Inc. company said Wednesday that it plans next year to stop using or investing in tracking technologies that uniquely identify web users as they move from site to site across the internet. The decision, coming from the world’s biggest digital advertising company, could help push the industry away from the use of such individualized tracking, which has come under increasing criticism from privacy advocates and faces scrutiny from regulators. Google’s heft means the change could reshape the digital ad business, where many companies rely on tracking individuals to target their ads, measure the ads’ effectiveness and stop fraud. Google accounted for 52% of last year’s global digital ad spending of $292 billion, according to Jounce Media, a digital ad consultancy.

Challenges: Some Ugly Truths The challenges of building—and living with—an XML workflow are clear enough. The return on investment is a long-term proposition. Regardless of the benefits XML may provide, the starting reality is that it represents a very different way of doing things than the one we are familiar with. The Word Processing and Desktop Publishing paradigm, based on the promise of onscreen, WYSIWYG layout, is so dominant as to be practically inescapable. It has proven really hard to get from here to there, no matter how attractive XML might be on paper. A considerable amount of organizational effort and labour must be expended up front in order to realize the benefits. This is why XML is often referred to as an “investment”: you sink a bunch of time and money up front, and realize the benefits—greater flexibility, multiple output options, searching and indexing, and general futureproofing—later, over the long haul. It is not a short-term return proposition. And, of course, the returns you are able to realize from your XML investment are commensurate with what you put in up front: fine-grained, semantically rich tagging is going to give you more potential for searchability and recombination than a looser, more general-purpose approach, but it sure costs more. For instance, the Text Encoding Initiative (TEI) is the grand example of pouring enormous amounts of energy into the up-front tagging, with a very open-ended set of possibilities down the line. TEI helpfully defines a level to which most of us do not have to aspire.[5] But understanding this on a theoretical level is only part of the challenge. There are many practical issues that must be addressed. Software and labour are two of the most critical. How do you get the content into XML in the first place? Unfortunately, despite two decades of people doing SGML and XML, this remains an ugly question.

The European Union unveiled landmark legislation on Tuesday that lays out strict rules for tech giants to do business in the bloc. The draft legislation, dubbed the Digital Services Act (DSA) and the Digital Markets Act (DMA), outlines specific regulations that seek to limit the power of global internet firms on the European market. Companies including Google, Apple, Amazon, Facebook and others could face hefty penalties for violating the rules. EU antitrust czar Margrethe Vestager and EU digital chief Thierry Breton presented the draft on Tuesday, after the content of the new rules was leaked to the media on Monday.

What's in the draft laws? The dual legislation sets out a list of do's, don'ts and penalties for internet giants: Companies with over 45 million EU users would be designated as digital "gatekeepers" — making them subject to stricter regulations. Firms could be fined up to 10% of their annual turnover for violating competition rules. The could also be required to sell one of their businesses or parts of it (including rights or brands). Platforms that refuse to comply and "endanger people's life and safety" could have their service temporarily suspended "as a last resort." Companies would need to inform the EU ahead of any planned mergers or acquisitions. Certain kinds of data must be shared with regulators and rivals. Companies favoring their own services could be outlawed. Platforms would be more responsible for illegal, disturbing or misleading content.

Following the announcement on Tuesday, US internet giant Google criticized the draft legislation, saying it appeared to target specific firms.  "We will carefully study the proposals made by the European Commission over the next few days. However, we are concerned that they seem to specifically target a handful of companies," said Karan Bhatia, the vice president of government affairs and public affairs at Google. Facebook appeared to offer a more conciliatory tone, saying the legislation was "on the right track."

Much to the disappointment of the digital advertising establishment, Mozilla is going ahead with plans to automatically block third-party cookie tracking in its Firefox browser. Mozilla first announced its Do Not Track browser in February, only to back off in May saying it needed to do more testing. But that didn't stop a growing chorus of loud protests from the advertising community, which argued that the browser would choke off the ad-supported Internet. The Interactive Advertising Bureau's general counsel Mike Zaneis called Mozilla's browser nothing less than a "nuclear first strike" against the ad community. No date has been set for when Firefox will turn on the feature, but advertisers, which have been regularly meeting with Mozilla and were hopeful for a compromise, are already lashing back at Mozilla.

"It's troubling," said Lou Mastria, the managing director for the Digital Advertising Alliance, which manages an online self-regulatory program called Ad Choices that provides consumers with the choice to opt-out of targeted ads. "They're putting this under the cloak of privacy, but it's disrupting a business model," Mastria said. Advertisers are worried that Mozilla's plans could be the death knell to thousands of small Web publishers that depend on third-party targeted ads to stay in business. Nearly 1,000 signed a petition urging Mozilla to change its plans.  "One publisher said that 20 percent of their business would go away. That's huge," said Mastria. "Mozilla is really picking business model winners and losers."

Not all cookies will be blocked under Mozilla's latest plans for its proposed browser; there will be exceptions. Through a partnership with the Center for Internet and Society at Stanford Law School, the two are launching a Cookie Clearinghouse. Overseen by a six-person panel, it will determine a list of undesirable cookies and then block those. "The Cookie Clearinghouse will create, maintain and publish objective information," Aleecia McDonald, director of privacy at CIS, said in a statement. "Web browser companies will be able to choose to adopt the lists we publish to provide new privacy options to their users." But others say the approach is far from objective. "What these organizations and the privacy groups that back them are really saying is 'let us choose for you because we know best,' " said Daniel Castro, a senior analyst with the Information Technology and Innovation Foundation. "The proponents of this model have claimed they are empowering users. ... This is basically Sarah Palin's 'Death Panels' but for the Internet."

While there is considerable telecom hubris regarding the 5G rollout and increasing speculation that the next generation of wireless is not yet ready for Prime Time, the industry continues to make promises to Rural America that it has no intention of fulfilling. Decades-long promises to deliver digital Utopia to rural America by T-Mobile, Verizon and AT&T have never materialized.  

In 2017, the USDA reported that 29% of American farms had no internet access. The FCC says that 14 million rural Americans and 1.2 million Americans living on tribal lands do not have 4G LTE on their phones, and that 30 million rural residents do not have broadband service compared to 2% of urban residents.  It’s beginning to sound like a Third World country. Despite an FCC $4.5 billion annual subsidy to carriers to provide broadband service in rural areas, the FCC reports that ‘over 24 million Americans do not have access to high-speed internet service, the bulk of them in rural area”while a  Microsoft Study found that  “162 million people across the US do not have internet service at broadband speeds.” At the same time, only three cable companies have access to 70% of the market in a sweetheart deal to hike rates as they avoid competition and the FCC looks the other way.  The FCC believes that it would cost $40 billion to bring broadband access to 98% of the country with expansion in rural America even more expensive.  While the FCC has pledged a $2 billion, ten year plan to identify rural wireless locations, only 4 million rural American businesses and homes will be targeted, a mere drop in the bucket. Which brings us to rural mapping: Since the advent of the digital age, there have been no accurate maps identifying where broadband service is available in rural America and where it is not available.  The FCC has a long history of promulgating unreliable and unverified carrier-provided numbers as the Commission has repeatedly ‘bungled efforts to produce accurate broadband maps” that would have facilitated rural coverage. During the Senate Commerce Committee hearing on April 10th regarding broadband mapping, critical testimony questioned whether the FCC and/or the telecom industry have either the commitment or the proficiency to provide 5G to rural America.  Members of the Committee shared concerns that 5G might put rural America further behind the curve so as to never catch up with the rest of the country

EU-U.S. Privacy Shield Program Overview The EU-U.S. Privacy Shield Framework was designed by the U.S. Department of Commerce and European Commission to provide companies on both sides of the Atlantic with a mechanism to comply with EU data protection requirements when transferring personal data from the European Union to the United States in support of transatlantic commerce. On July 12, the European Commission deemed the Privacy Shield Framework adequate to enable data transfers under EU law (see the adequacy determination). The Privacy Shield program, which is administered by the International Trade Administration (ITA) within the U.S. Department of Commerce, enables U.S.-based organizations to join the Privacy Shield Framework in order to benefit from the adequacy determination. To join the Privacy Shield Framework, a U.S.-based organization will be required to self-certify to the Department of Commerce (via this website) and publicly commit to comply with the Framework’s requirements. While joining the Privacy Shield Framework is voluntary, once an eligible organization makes the public commitment to comply with the Framework’s requirements, the commitment will become enforceable under U.S. law. All organizations interested in joining the Privacy Shield Framework should review its requirements in their entirety. To assist in that effort, Commerce’s Privacy Shield Team has compiled resources and addressed frequently asked questions below. ResourcesKey New Requirements for Participating Organizations How to Join the Privacy ShieldPrivacy Policy FAQs Frequently Asked Questions

Box for Industries is comprised of three parts: A Box-tailored core service offering, a selection of partner apps, and the implementation services to combine the two of those into something that ideally can be used by any enterprise in any vertical. 

BitTorrent today released folder syncing software that replicates files across multiple computers using the same peer-to-peer file sharing technology that powers BitTorrent clients. The free BitTorrent Sync application is labeled as being in the alpha stage, so it's not necessarily ready for prime-time, but it is publicly available for download and working as advertised on my home network. BitTorrent, Inc. (yes, there is a legitimate company behind BitTorrent) took to its blog to announce the move from a pre-alpha, private program to the publicly available alpha. Additions since the private alpha include one-way synchronization, one-time secrets for sharing files with a friend or colleague, and the ability to exclude specific files and directories.

BitTorrent Sync provides "unlimited, secure file-syncing," the company said. "You can use it for remote backup. Or, you can use it to transfer large folders of personal media between users and machines; editors and collaborators. It’s simple. It’s free. It’s the awesome power of P2P, applied to file-syncing." File transfers are encrypted, with private information never being stored on an external server or in the "cloud." "Since Sync is based on P2P and doesn’t require a pit-stop in the cloud, you can transfer files at the maximum speed supported by your network," BitTorrent said. "BitTorrent Sync is specifically designed to handle large files, so you can sync original, high quality, uncompressed files."

The UN's newly appointed special rapporteur on privacy, Joseph Cannataci, has described digital surveillance in the UK as "worse" than anything imagined in George Orwell's totalitarian dystopia 1984.Speaking to the Guardian, Cannataci -- who doesn't own a Facebook account or use Twitter -- lambasted the oversight of British digital surveillance as "a rather bad joke at its citizens' expense".Warning against the steady erosion of privacy and increasing levels of government intrusion, he also drew sinister parallels with Orwell's vision of a mass-surveilled society, adding that today's reality was far worse than the fiction: "At least Winston [a character in Orwell's 1984] was able to go out in the countryside and go under a tree and expect there wouldn't be any screen, as it was called. Whereas today there are many parts of the English countryside where there are more cameras than George Orwell could ever have imagined."

Cannataci, who holds posts as a professor of technology of law at the University of Groningen, and as head of the department of Information Policy and Governance at the University of Malta, also called for a "Geneva convention-style law" for the internet. "Some people may not want to buy into it. But you know, if one takes the attitude that some countries will not play ball, then, for example, the chemical weapons agreement would never have come about."

As part of his new role -- which elevates digital privacy to the same level of importance as other human rights -- Cannataci has vowed to begin systematically reviewing government policies and the business models of large corporations, which he accuses of "very often taking the data that you never even knew they were taking". Although the privacy chief admits that his mandate is more than likely "impossible to achieve in the next three years", he stressed the importance of a "longer-term view" in an effort to help protect people's data and safeguard their digital rights.