Tag Archives: Social Media

The Twitter Files and Political Exploitation of Social Media

07 Wednesday Dec 2022

Posted by in Censorship, Regulation, Social Media

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I’ve been cheering for Elon Musk in his effort to remake Twitter into the kind of “public square” it always held the promise to be. He’s standing up for free expression, against one-party control of speech on social media, and especially against government efforts to control speech. That’s a great and significant thing, yet as Duke economist Michael Munger notes, we hear calls from the Biden Administration and congressional Democrats to “keep an eye on Twitter”, a not-so-veiled threat of future investigative actions or worse.

Your Worst Enemy Test, Public or Private

As a disclaimer, I submit that I’m not an unadulterated fan of Musk’s business ventures. His business models too often leverage wrong-headed government policy for profitability. It reeks of rent seeking behavior, whatever Musk’s ideals, and the availability of those rents, primarily subsidies, violates the test for good governance I discussed in my last post. That’s the Munger Test (the “Your Worst Enemy” Test), formally:

“You can only give the State power that you favor giving to your worst enemy.”

On the other hand, Musk’s release of the “Twitter Files” last weekend, with more to come, is certainly a refreshing development. Censorship at the behest of political organizations, foreign governments, or our own government are all controversial and possibly illegal. While we’d ordinarily hope to transact privately at arms length with free exchange being strictly an economic proposition, one might even apply the Munger Test to the perspective of a user of a social media platform: would you trust your worst enemy to exercise censorship on that platform on the basis of politics? Like Donald Trump? Or Chuck Schumer? If not, then you probably won’t be happy there! Now, add to that your worst enemy’s immunity to prosecution for any content they deem favorable!

Cloaked Government Censorship?

Censorship runs afoul of the First Amendment if government actors are involved. In an interesting twist in the case of the Twitter Files, the two independent journalists working with the files, Matt Taibbi and Bari Weiss, learned that some of the information had been redacted by one James Baker, Twitter’s Deputy General Counsel. Perhaps not coincidentally, Baker was also formerly General Counsel of the FBI and a key figure in the Trump-Russia investigation. Musk promptly fired Baker from Twitter over the weekend. We might see, very soon, just how coincidental Baker’s redactions were.

Mark Zuckerberg himself recently admitted that Facebook was pressured by the FBI to censor the Hunter Biden laptop story, which is a key part of the controversy underlying the Twitter Files. The Biden Administration had ambitious plans for working alongside social media on content moderation, but the Orwellian-sounding “Disinformation Governance Board” has been shelved, at least for now. Furthermore, activity performed for a political campaign may represent an impermissible in-kind campaign donation, and Twitter falsely denied to the FEC that it had worked with the Biden campaign.

Solutions?

What remedies exist for potential social media abuses of constitutionally-protected rights, or even politically-driven censorship? Elon Musk’s remaking of Twitter is a big win, of course, and market solutions now seem more realistic. Court challenges to social media firms are also possible, but there are statutory obstacles. Court challenges to the federal government are more likely to succeed (if its involvement can be proven).

The big social media firms have all adopted a fairly definitive political stance and have acted on it ruthlessly, contrary to their professed role in the provision of an open “public square”. For that reason, I have in the past supported eliminating social media’s immunity from prosecution for content posted on their networks. A cryptic jest by Musk might just refer to that very prospect:

“Anything anyone says will be used against me in a court of law.”

Or maybe not … even with the sort of immunity granted to social media platforms, the Twitter Files might implicate his own company in potential violations of law, and he seems to be okay with that.

Immunity was granted to social media platforms under Section 230 of the Communications Decency Act (DCA). It was something many thought “the state should do” in the 1990s in order to foster growth in the internet. And it would seem that a platform’s immunity for content shared broadly should be consistent with promoting free speech. So the issue of revoking immunity is thorny for free speech advocates.

Section 230 And Content Moderation

There have always been legal restrictions on speech related to libel and “fighting words”. In addition, the CDA, which is a part of the Telecommunications Act, restricts “obscene” or “offensive” speech and content in various ways. The problem is that social media firms seem to have used the CDA as a pretext for censoring content more generally. It’s also possible they felt as if immunity from liability made them legally impervious to objections of any sort, including aggressive political censorship and user bans on behalf of government.

The social value of granting immunity depends on the context. There are two different kinds of immunity under Section 230: subsection (c)(1) grants immunity to so-called common carriers (e.g. telephone companies) for the content of private messages or calls on their networks; subsection (c)(2) grants immunity to social media companies for content posted on their platforms as long as those companies engage in content moderation consistent with the provisions of the CDA.

Common carrier immunity is comparatively noncontroversial, but with respect to 230(c)(2), I go back to the question: would I want my worst enemy to have the power to grant this kind of immunity? Not if it meant the power to forgive political manipulation of social media content with the heavy involvement of one political party! The right to ban users is completely unlike the “must serve” legal treatment of “public accommodations” provided by most private businesses. And immunity is inconsistent with other policies. For example, if social media acts to systematically host and to amplify some viewpoints and suppress others, it suggests that they are behaving more like publishers, who are liable for material they might publish, whether produced on their own or by third-party contributors.

Still, social media firms are private companies and their user agreements generally allow them to take down content for any reason. And if content moderation decisions are colored by input from one side of the political aisle, that is within the rights of a private firm (unless its actions are held to be illegal in-kind contributions to a political campaign). Likewise, it is every consumer’s right not to join such a platform, and today there are a number of alternatives to Twitter and Facebook.

Again, political censorship exercised privately is not the worst of it. There are indications that government actors have been complicit in censorship decisions made by social media. That would be a clear violation of the First Amendment for which immunity should be out of the question. I’d probably cut a platform considerable slack, however, if they acted under threat of retaliation by government actors, if that could be proven.

Volokh’s Quid Pro Quo

Rather than simply stripping away Section 230 protection for social media firms, another solution has been suggested by Eugene Volokh in “Common Carrier Status as Quid Pro Quo for § 230(c)(1) Immunity”. He proposes the following choice for these companies:

“(1) Be common carriers like phone companies, immune from liability but also required to host all viewpoints, or

(2) be distributors like bookstores, free to pick and choose what to host but subject to liability (at least on a notice-and-takedown basis).”

Option 2 is the very solution discussed in the last section (revoke immunity). Option 1, however, would impinge on a private company’s right to moderate content in exchange for continued immunity. Said differently, the quid pro quo offers continued rents created by immunity in exchange for status as a public utility of sorts, along with limits on the private right to moderate content. Common carriers often face other regulatory rules that bear on pricing and profits, but since basic service on social media is usually free, this is probably not at issue for the time being.

Does Volokh’s quid pro quo pass the Munger Test? Well, at least it’s a choice! For social media firms to host all viewpoints isn’t nearly as draconian as the universal service obligation imposed on local phone companies and other utilities, because the marginal cost of hosting an extra social media user is negligible.

Would I give my worst enemy the power to impose this choice? The CDA would still obligate social media firms selecting Option 1 to censor obscene or offensive content. Option 2 carries greater legal risks to firms, who might respond by exercising more aggressive content moderation. The coexistence of common carriers and more content-selective hosts might create competitive pressures for restrained content moderation (within the limits of the CDA) and a better balance for users. Therefore, Volokh’s quid pro quo option seems reasonable. The only downside is whether government might interfere with social media common carriers’ future profitability or plans to price user services. Then again, if a firm could reverse its choice at some point, that might address the concern. The CDA itself might not have passed the “Worst Enemy” Munger Test, but at least within the context of established law, I think Volokh’s quid pro quo probably does.

We’ll Know More Soon

More will be revealed as new “episodes” of the Twitter Files are released. We may well hear direct evidence of government involvement in censorship decisions. If so, it will be interesting to see the fallout in terms of legal actions against government censorship, and whether support coalesces around changes in the social media regulatory environment.

Government Action and the “Your Worst Enemy” Test

03 Saturday Dec 2022

Posted by in Big Government, Censorship

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A couple of weeks back I posted an admittedly partial list of the disadvantages, dysfunctions, and dangers of the Big Government Mess seemingly wished upon us by so many otherwise reasonable people. A wise addition to that line of thinking is the so-called Munger Test articulated by Michael Munger of Duke University. Here, he applies the test to government involvement in social media content regulation:

“If someone says “The STATE should do X” (in this case, decide what is true and what can be published in a privately-owned space), they need to make a substitution.

Instead of “The STATE” substitute “Donald Trump,” and see if you still belief it. (Or “Nancy Pelosi”, if you want).”

If approached honestly, Munger’s test is sure to make a partisan think twice about having government “do something”, or do anything! In a another tweet, Munger elaborates on the case of Twitter, which is highly topical at the moment:

“In fact, the reporters and media moguls who are calling for the state to hammer Twitter, and censor all those other ‘liars’, naively believe that they have a 1000 Year Reich.

You don’t. 𝙔𝙤𝙪 𝙘𝙖𝙣 𝙤𝙣𝙡𝙮 𝙜𝙞𝙫𝙚 𝙩𝙝𝙚 𝙎𝙩𝙖𝙩𝙚 𝙥𝙤𝙬𝙚𝙧𝙨 𝙩𝙝𝙖𝙩 𝙮𝙤𝙪 𝙛𝙖𝙫𝙤𝙧 𝙜𝙞𝙫𝙞𝙣𝙜 𝙩𝙤 𝙮𝙤𝙪𝙧 𝙬𝙤𝙧𝙨𝙩 𝙚𝙣𝙚𝙢𝙮. Deal with it.”

The second sentence in that last paragraph is an even more concise statement of the general principle behind the Munger Test, which we might dub the “Worst Enemy Test” with no disrespect to Munger. He proposed the test (immodestly named, he admits) in his 2014 article, “Unicorn Governance”, in which he offered a few other examples of its application. The article is subtitled:

“Ever argued public policy with people whose State is in fantasyland?”

The answer for me is yes, almost every time I talk to anyone about public policy! And as Munger says, that’s because:

“Everybody imagines that ‘The STATE’ is smart people who agree with them. Once MY team controls the state, order will be restored to the Force.”

So go ahead! Munger-test all your friends’ favorite policy positions the next time you talk!

But what about the case of “regulating” Twitter or somehow interfering with its approach to content moderation? More on that in my next post.

An Internet for Users, Not Gatekeepers and Monopolists

09 Wednesday Jun 2021

Posted by in Censorship, Social Media, Uncategorized

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Factions comprising a majority of the public want to see SOMETHING done to curb the power of Big Tech, particularly Google/Alphabet, Facebook, Amazon, and Twitter. The apprehensions center around market power, censorship, and political influence, and many of us share all of those concerns. The solutions proposed thus far generally fall into the categories of antitrust action and legislative changes with the intent to protect free speech, but it is unlikely that anything meaningful will happen under the current administration. That would probably require an opposition super-majority in Congress. Meanwhile, some caution the problem is blown out of proportion and that we should not be too eager for government to intervene. 

Competition

There are problems with almost every possible avenue for reining in the tech oligopolies. From a libertarian perspective, the most ideal solution to all dimensions of this problem is organic market competition. Unfortunately, the task of getting competitive platforms off the ground seems almost insurmountable. In social media, the benefits to users of a large, incumbent network are nearly overwhelming. That’s well known to anyone who’s left Facebook and found how difficult it is to gain traction on other social media platforms. Hardly anyone you know is there!

Google is the dominant search engine by far, and the reasons are not quite as wholesome as the “don’t-be-evil” mantra goes. There are plenty of other search engines, but some are merely shells using Google’s engine in the background. Others have privacy advantages and perhaps more balanced search results than Google, but with relatively few users. Google’s array of complementary offerings, such as Google Maps, Street View, and Scholar, make it hard for users to get away from it entirely.

Amazon has been very successful in gaining retail market share over the years. It now accounts for an estimated 50% of retail e-commerce sales in the U.S., according to Statista. That’s hardly a monopoly, but Amazon’s scale and ubiquity in the online retail market creates massive advantages for buyers in terms of cost, convenience, and the scope of offerings. It creates advantages for online sellers as well, as long as Amazon itself doesn’t undercut them, which it is known to do. As a buyer, you almost have to be mad at them to bother with other online retail platforms or shopping direct. I’m mad, of course, but I STILL find myself buying through Amazon more often than I’d like. But yes, Amazon has competition.

Anti-Trust

Quillette favors antitrust action against Big Tech. Amazon and Alphabet are most often mentioned in the context of anti-competitive behavior, though the others are hardly free of complaints along those lines. Amazon routinely discriminates in favor of products in which it has a direct or indirect interest, and Google discriminates in favor of its own marketplace and has had several costly run-ins with EU antitrust enforcers. Small businesses are often cited as victims of Google’s cut-throat business tactics.

The Department of Justice filed suit against Google in October, 2020 for anti-competitive and exclusionary practices in the search and search advertising businesses. The main thrust of the charges are:

  • Exclusivity agreements prohibiting preinstallation of other search engines;
  • Tying arrangements forcing preinstallation of Google and no way to delete it;
  • Suppressing competition in advertising;

There are two other antitrust cases filed by state attorneys general against Google alleging monopolistic practices benefitting its own services at the expense of sellers in various lines of business. All of these cases, state and federal, are likely to drag on for years and the outcomes could take any number of forms: fines, structural separation of different parts of the business, and divestiture are all possibilities. Or perhaps nothing. But I suppose one can hope that the threat of anti-trust challenges, and of prolonged battles defending against such charges, will have a way of tempering anti-competitive tendencies, that is, apart from actual efficiency and good service.

These cases illustrate the fundamental tension between our desire for successful businesses to be rewarded and antitrust. As free market economists such as Murray Rothbard have said, there is something “arbitrary and capricious” about almost any anti-trust action. Legal thought on the matter has evolved to recognize that monopoly itself cannot be viewed as a crime, but the effort to monopolize might be. But as Rothbard asserted, claims along those lines tend to be rather arbitrary, and he was quite right to insist that the only true monopoly is one granted by government. In this case, many conservatives believe Section 230 of the Communications Decency Act of 1996 was the enabling legislation. But that is something anti-trust judgements cannot rectify.

Revoking Immunity

Section 230 gives internet service providers immunity against prosecution for any content posted by users on their platforms. While this provision is troublesome (see below), it is not at all clear why it might have encouraged monopolization, especially for web search services. At the time of the Act’s passage, Larry Page and Sergey Brin had barely begun work on Backrub, the forerunner to Google. Several other search engines had already existed and others have sprung up since then with varying degrees of success. Presumably, all of them have benefitted from Section 230 immunity, as have all social media platforms: not just Facebook, but Twitter, MeWe, Gab, Telegram, and others long forgotten, like MySpace.

Nevertheless, while private companies have free speech rights of their own, Section 230 confers undeserved protection against liability for the tech giants. That protection was predicated on the absence of editorial positioning and/or viewpoint curation of content posted by users. Instead, Section 230 often seems designed to put private companies in charge of censoring the kind of speech that government might like to censor. Outright repeal has been used as a threat against these companies, but what would it accomplish? The tech giants insist it would mean even more censorship, which is likely to be the result. 

Other Legislative Options

Other legislative solutions might hold the key to establishing true freedom of speech on the internet, a project that might have seemed pointless a decade ago. Justice Clarence Thomas’s concurring opinion in Biden v. Knight First Amendment Institute suggested the social media giants might be treated as common carriers or made accountable under laws on public accommodation. This seems reasonable in light of the strong network effects under which social media platforms operate as “public squares.” Common carrier law or a law designating a platform as a public accommodation would prohibit the platform from discriminating on the basis of speech.

I do not view such restrictions in the same light as so-called net neutrality, as some do. The latter requires carriers of data to treat all traffic equally in terms of priority and pricing of network resources, despite the out-sized demands created by some services. It is more of a resource allocation issue and not at all like managing traffic based on its political content.

The legislation contemplated by free speech activists with respect to big tech has to do with prohibiting viewpoint discrimination. That could be accomplished by laws asserting protections similar to those granted under the so-called Fairness Doctrine. As Daniel Oliver explains:

“A law prohibiting viewpoint discrimination (Missouri Senator Josh Hawley has introduced one such bill) would be just as constitutional as the Fairness Doctrine, an FCC policy which adjusted the overall balance of broadcast programming, or the Equal Time Rule, which first emerged in the Radio Act of 1927 and was established by the Communications Act of 1934. Under such a law, a plaintiff could sue for viewpoint discrimination. That plaintiff would be someone whose message had been suppressed by a tech company or whose account had been blocked or cancelled….”

Ron DeSantis just signed a new law giving the state of Florida or individuals the right to sue social media platforms for limiting, altering or deleting content posted by users, as well as daily fines for blocking candidates for political office. It will be interesting to see whether any other states pass similar legislation. However, the fines amount to a pittance for the tech giants, and the law will be challenged by those who say it compels speech by social media companies. That argument presupposes an implicit endorsement of all user content, which is absurd and flies in the face of the very immunity granted by Section 230. 

Justice Thomas went to pains to point out that when the government restricts a platform’s “right to exclude,” the accounts of public officials can more clearly be delineated as public forums. But in an act we wouldn’t wish to emulate, the government of Nigeria just shut down Twitter for blocking President Buhari’s tweet threatening force against rebels in one part of the country. Still, any law directly restricting a platform’s editorial discretion must be enforceable, whether that involves massive financial penalties for violations or some other form of discipline.

Private Action

There are private individuals who care enough about protecting speech online to do something about it. For example, these tech executives are fighting against internet censorship. You can also complain directly to the platforms when they censor content, and there are ways to react to censored posts by following prompts — tell them the information provided on their decision was NOT helpful and why. You can follow and support groups like the Media Research Center and its Censor Track service, or the Internet Accountability Project. Complain to your state and federal legislators about censorship and tell them what kind of changes you want to see. Finally, if you are serious about weakening the grip of the Big Tech, ditch them. Close your accounts on Facebook and Twitter. Stop using Google. Cancel your Prime membership. Join networks that are speech friendly and stick it out.

Individual action and a sense of perspective are what Katherine Mangu-Ward urges in this excellent piece:

“Ousted from Facebook and Twitter, Trump has set up his own site. This is a perfectly reasonable response to being banned—a solution that is available to virtually every American with access to the internet. In fact, for all the bellyaching over the difficulty of challenging Big Tech incumbents, the video-sharing app TikTok has gone from zero users to over a billion in the last five years. The live audio app Clubhouse is growing rapidly, with 10 million weekly active users, despite being invite-only and less than a year old. Meanwhile, Facebook’s daily active users declined in the last two quarters. And it’s worth keeping in mind that only 10 percent of adults are daily users of Twitter, hardly a chokehold on American public discourse.

Every single one of these sites is entirely or primarily free to use. Yes, they make money, sometimes lots of it. But the people who are absolutely furious about the service they are receiving are, by any definition, getting much more than they paid for. The results of a laissez-faire regime on the internet have been remarkable, a flowering of innovation and bountiful consumer surplus.”

Conclusion

The fight over censorship by Big Tech will continue, but legislation will almost certainly be confined to the state level in the short-term. It might be some time before federal law ever recognizes social media platforms as the public forums most users think they should be. Federal legislation might someday call for the wholesale elimination of Section 230 or an adjustment to its language. A more direct defense of First Amendment rights would be strict prohibitions of online censorship, but that won’t happen. Instead, the debate will become mired in controversy over appropriate versus inappropriate moderation, as Mangu-Ward alludes. Antitrust action should always be viewed with suspicion, though some argue that it is necessary to establish a more competitive environment, one in which free speech and fair search-engine treatment can flourish.

Organic competition is the best outcome of all, but users must be willing to vote with their digital feet, as it were, rejecting the large tech incumbents and trying new platforms. And when you do, try to bring your friends along with you!

Note: This post also appears at The American Reveille.

A Blogger’s Lament: It’s a Meme, Meme, Meme, Meme, Meme, Meme, Meme, Meme World

02 Sunday May 2021

Posted by in Blogging

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A few years ago a guy clicked through to this blog from a social media site. Apparently he made a quick retreat, and he left the following comment: “Ohh, too many words….” It’s not a revelation to me, but it’s amazing how few people are willing to READ!

My nephew, who is something of a political activist and has a news site of his own, put his finger on it last year. In a piece I’d written about pandemic issues, I used a cover photo of a graph illustrating one of my main points, as I do sometimes when empirics are involved. I’m paraphrasing, but he said I shouldn’t use graphs as covers because it scares off potential readers. It says, “if you click through you’ll have to think!” But I have no ambitions to be a mass sensation, and as a reader of blogs I tend to regard such devices positively. On the other hand, if a picture is worth a thousand words, there’s a chance that good thinkers gather in what they presume they need to know without clicking through. That’s almost as bad from my perspective, because I want to give them the thousand words anyway!

Here’s a similar phenomenon: occasionally I’ll use a meme as a cover photo for a blog post, but some people “like” the post solely because of the meme without bothering to click through! I’m glad we’re simpatico, but I’d prefer they read the post. I view that kind of reaction as lazy or the act of an easily distracted individual.

I have no interest in writing for people who don’t want to think, but the rub lies in finding those that do. I have a full time job, so producing more content is not an option. I’m not affiliated with a well-known publication or an institution with a significant presence on the web. My readers come from the WordPress community, search engines, and a few social media sites to which I cross-post. Occasionally, if the subject matter is pertinent, I post comments to articles on other blogs and link to one of my posts. That brings in a few views, and those visitors have a definite interest in the subject matter.

Social media sites would seem to be a natural channel for readers, but of course they are jam-packed with memes. Some of those are very good and some are very funny. Some are surely worth a thousand words, but I quickly develop “meme fatigue”. And both good memes and bad memes seem to be reposted ad infinitum.

Simplification and humor are major elements of “meme art”, and I would describe the best of it as such. The ability to simplify is likewise one of the greatest skills an economist can possess, so I respect it. In fact, I like to call economics formalized common sense, but that formalization must happen within an expository framework. Many of my posts are mere commentary, but I like a somewhat deeper dive than the meme form can accommodate. If I get excited about a topic and immerse myself, blogging gives me an opportunity to do some research and explain my point of view while doing my best to apply economic thinking. Moreover, I like to write. Unfortunately, I’m not all that funny, but sometimes I try.

I’m frequently disappointed to see memes I view as extremist, distorted, shallow or over-simplified. For example, I’m no fan of critical race theory, but it’s not fiction to say that racist memes sometimes appear on social media, which prompts me to block the poster immediately.

I scroll through a few memes each day, but I spend more time checking the other blogs I frequent, where I find gobs of interesting reading material. I join groups related to my musical interests, which offer great recordings. I occasionally watch video commentary, but prefer the written form. I have friends who send me lonnnng videos, but I wish they’d send transcripts instead. A two-hour video is not a commitment I’m usually willing to make!

There are many who say blogging is passé, and apparently many don’t have the patience to read lengthier treatments. It’s still the form I prefer, despite the difficulty of battling for eyeballs with memes. But that’s not quite right: there’s really no battle when it comes to those without interest in detailed treatments of issues. The real battles have to do with finding motivated and patient users with common interests and getting more favorable placement on biased search engines. Good content is also key, but that challenge is part of the joy of blogging.

Lockdown-Righteous Morons Condemn Beachgoers

19 Sunday Apr 2020

Posted by in Liberty, Pandemic, Public Health

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I’m often inspired by social media because that’s where the sacred cows graze. Today I saw a juicy one… but actually, the linked article was not surprising: the headline claimed that Jacksonville, Florida residents were flocking to local beaches after they’d been reopened. What grabbed me were the half-witted condemnations made by the poster and his friends. One individual, a Jacksonville resident, claimed that the article was incorrect, that this was “not happening in Jax”. But many of the commenters were horrified by the accompanying photo, a view down the beach showing a number of walkers. If you’ve ever been to a beach, you probably know that such a visual perspective can exaggerate crowd conditions. They looked adequately distanced to me, and I’d bet most of the people or small groups in the photo were a good 20+ feet apart.

The comments on the post were a display of unbridled anger: those people on the beach would be sorry when they caused a second spike in coronavirus cases. How monstrous were these Jaxers to chance infecting others! A few expressed hope that the beachgoers would get sick, as if they’d learn their lesson. And in a delicious case of projection by the uninformed, the hashtag #FloridaMorons was trending on social media. These ugly, nitwitted nannies just can’t get over their need to control their fellow man, while lacking the knowledge to do so sensibly.

Not only did the people on the beach look adequately distanced to the rational eye, but unless you’re an unreformed hugger or “close talker”, the chance of contracting coronavirus outdoors is slim to none! That’s especially true on a beach, where there is typically a decent breeze.

A recent study conducted by Chinese researchers on the environments in which clusters of Covid infections were originally contracted showed that outdoor transmission is very unlikely:

“…among our 7,324 identified cases in China with sufficient descriptions, only one outdoor outbreak involving two cases occurred.”

The authors conclude that coronavirus transmission is an indoor phenomenon.

A Q&A from Time includes the question: Is there any difference between being indoors and outdoors when it comes to transmission? Here is part of the response:

“We all occupy an area in three dimensional space, and as we move away from one another, the volume of air space on which we have an impact expands enormously. ‘If you go from a 10-ft. sphere to a 20-ft. sphere you dilute the concentration [of contaminated air] eight-fold,’ says Dr. Christopher Gill, associate professor of global health at Boston University School of Public Health.”

“‘Within seconds [a virus] can be blown away,’ […] Sunlight may also act as a sterilizer, Gill says. Ultraviolet wavelengths can be murder—literally—on bacteria and viruses, though there hasn’t yet been enough research to establish what exactly the impact of sun exposure is on SARS-CoV-2, the virus responsible for COVID-19.”

There is evidence, however, that high temperatures and humidity reduce the spread of the virus (and see here). That sounds like the beach to me! Whether by droplets or aerosols, confined spaces are where transmission happens. It is almost exclusively an indoors phenomenon, aggravated by HVAC air flows that create dry conditions.

Social distancing is still important at the moment, but keeping people indoors is not conducive to public health. Most of the country (well, outside of downstate New York)  is on a path to stanching the contagion. Under these circumstances, you can expect people to push back against unreasonable demands to stay off the beach, stay off an outdoor job, or even stay off their indoor job where there is good ventilation with fresh air, and where distance can be maintained. These little social-media tyrants should pry off their jack-boots and get some sand between their toes!

 

Social Media and the Antitrust Reflex

10 Tuesday Apr 2018

Posted by in Antitrust, Regulation, Social Media

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Falling Zuckerberg

Facebook is under fire for weak privacy protections, its exploitation of users’ data, and the dangers it is said to pose to Americans’ free speech rights. Last week, Mark Zuckerberg, who controls all of the voting stock in Facebook, attempted to address those issues before a joint hearing of the Senate Judiciary and Commerce Committees. It represented a major event in the history of the social media company, and it happened at a time when discussion of antitrust action against social media conglomerates like Facebook, Google, and Amazon is gaining support in some quarters. I hope this intervention does not come to pass.

The Threat

At the heart of the current uproar are Facebook’s data privacy policy and a significant data breach. The recent scandal involving Cambridge Analytica arose because Facebook, at one time, allowed application developers to access user data, and the practice continued for a few developers. Unfortunately, at least one didn’t keep the data to himself. There have been accusations that the company has violated privacy laws in the European Union (EU) and privacy laws in some states. Facebook has also raised ire among privacy advocates by lobbying against stronger privacy laws in some states, but it is within its legal rights to do so. Violations of privacy laws must be adjudicated, but antitrust laws were not intended to address such a threat. Rather, they were intended to prevent dominant producers from monopolizing or restraining trade in a market and harming consumers in the process.

Matt Stoller, in an interview with Russ Roberts on EconTalk, says antitrust action against social media companies may be necessary because they are so pervasive in our lives, have built such dominant market positions, and have made a practice of buying nascent competitors over the years. Steps must be taken to “oxygenate” the market, according to Stoller, promoting competition and protecting new entrants.

Tim Wu, the attorney who coined the misleading term “network neutrality”, is a critic of Facebook, though Wu is more skeptical of the promise of antitrust or regulatory action:

“In Facebook’s case, we are not speaking of a few missteps here and there, the misbehavior of a few aberrant employees. The problems are central and structural, the predicted consequences of its business model. From the day it first sought revenue, Facebook prioritized growth over any other possible goal, maximizing the harvest of data and human attention. Its promises to investors have demanded an ever-improving ability to spy on and manipulate large populations of people. Facebook, at its core, is a surveillance machine, and to expect that to change is misplaced optimism.”

Google has already been subject to antitrust action in the EU due to the alleged anti-competitive nature of its search algorithm, and Facebook’s data privacy policy is under fire there. But the prospect of traditional antitrust action against a social media company like Facebook seems rather odd, as acknowledged by the author at the first link above, Navneet Alang:

“… Facebook specifically doesn’t appear to be doing anything that actively violates traditional antitrust rules. Instead, it’s relying on network effects, that tendency of digital networks to have their own kind of inertia where the more people get on them the more incentive there is to stay. It’s also hard to suggest that Facebook has a monopoly on advertising dollars when Google is also raking in billions of dollars.“

Competition

The size of Facebook’s user base gives it a massive advantage over most of the other platforms in terms of network effects. I offer myself as an example of the inertia described by Alang: I’ve been on Facebook for a number of years. I use it to keep in touch with friends and as a vehicle for attracting readers to my blog. As I contemplated this post, I experimented by opening a MeWe account, where I joined a few user groups. It has a different “feel” than Facebook and is more oriented toward group chats. I like it and I have probably spent as much time on MeWe in the last week as Facebook. I sent MeWe invitations to about 20 of my friends, nearly all of whom have Facebook accounts, and a few days later I posted a link to MeWe on my Facebook wall. Thus far, however, only three of my friends have joined MeWe. Of course, none of us has deactivated our Facebook account, and I speculate that none of us will any time soon. This behavior is consistent with “platform inertia” described by Alang. Facebook users are largely a captive market.

But Facebook is not a monopoly and it is not a necessity. Neither is Google. Neither is Amazon. All of these firms have direct competitors for both users and advertising dollars. It’s been falsely claimed that Google and Facebook together control 90% of online ad revenue, but the correct figure for 2017 is estimated at less than 57%. That’s down a bit from 2016, and another decline is expected in 2018. There are many social media platforms. Zuckerberg claims that the average American already uses eight different platforms, which may include Facebook, Google+, Instagram, LinkedIn, MeWe, Reddit, Spotify, Tinder, Tumblr, Twitter, and many others (also see here). Some of these serve specialized interests such as professional networking, older adults, hook-ups, and shopping. Significant alternatives for users exist, some offering privacy protections that might have more appeal now than ever.

Antitrust vs. Popular, Low-Priced Service Providers

Facebook’s business model does not fit comfortably into the domain of traditional antitrust policy. The company’s users pay a price, but one that is not easily calculated or even perceived: the value of the personal data they give away on a daily basis. Facebook is monetizing that data by allowing advertisers to target individuals who meet specific criteria. Needless to say, many observers are uncomfortable with the arrangement. The company must maintain a position of trust among its users befitting such a sensitive role. No doubt many have given Facebook access to their data out of ignorance of the full consequences of their sacrifice. Many others have done so voluntarily and with full awareness. Perhaps they view participation in social media to be worth such a price. It is also plausible that users benefit from the kind of targeted advertising that Facebook facilitates.

Does Facebook’s business model allow it to engage in an ongoing practice of predatory pricing? It is far from clear that its pricing qualifies as “anti-competitive behavior”, and courts have been difficult to persuade that low prices run afoul of U.S. antitrust law:

“Predatory pricing occurs when companies price their products or services below cost with the purpose of removing competitors from the market. … the courts use a two part test to determine whether they have occurred: (1) the violating company’s production costs must be higher than the market price of the good or service and (2) there must be a ‘dangerous probability’ that the violating company will recover the loss …”

Applying this test to Facebook is troublesome because as we have seen, users exchange something of value for their use of the platform, which Facebook then exploits to cover costs quite easily. Fee-based competitors who might complain that Facebook’s pricing is “unfair” would be better-advised to preach the benefits of privacy and data control, and some of them do just that as part of their value proposition.

More Antitrust Skepticism

John O. McGinnis praises the judicial restraint that has characterized antitrust law over the past 30 years. This practice recognizes that it is not always a good thing for consumers when the government denies a merger, for example, or busts up a firm deemed by authorities to possess “too much power”. An innovative firm might well bring new value to its products by integrating them with features possessed by another firm’s products. Or a growing firm may be able to create economies of scale and scope that are passed along to consumers. Antitrust action, however, too often presumes that a larger market share, however defined, is unequivocally bad beyond some point. Intervention on those grounds can have a chilling effect on innovation and on the value such firms bring to the market and to society.

There are more fundamental reasons to view antitrust enforcement skeptically. For one thing, a product market can be defined in various ways. The more specific the definition, the greater the appearance of market dominance by larger firms. Or worse, the availability of real alternatives is ignored. For example, would an airline be a monopolist if it were the only carrier serving a particular airport or market? In a narrow sense, yes, but that airline would not hold a monopoly over intercity transportation, for which many alternatives exist. Is an internet service provider (ISP) a monopoly if it is the only ISP offering a 400+ Mbs download speed in a certain vicinity? In a very narrow sense, yes, but there may be other ISPs offering slower speeds that most consumers view as adequate. And in all cases, consumers always have one very basic alternative: not buying. Even so-called natural monopolies, such as certain public utilities, offer services for which there are broad alternatives. In those cases, however, a grant of a monopoly franchise is typically seen as a good solution if exchanged for public oversight and regulation, so antitrust is generally not at issue.

One other basic objection that can be made to antitrust is that it violates private property rights. A business that enjoys market dominance usually gets that way by pleasing customers. It’s rewards for excellent performance are the rightful property of its owners, or should be. Antitrust action then becomes a form of confiscation by punishing such a firm and its owners for success.

Political Bias

Another major complaint against Facebook is political bias. It is accused of selectively censoring users and their content and manipulating user news feeds to favor particular points of view. Promises to employ fact-check mechanisms are of little comfort, since the concern involves matters of opinion. Any person or organization held to be in possession of the unadulterated truth on issues of public debate should be regarded with suspicion.

Last Tuesday at the joint session, Zuckerberg acted as if such a bias was quite natural, given that Facebook’s employee base is concentrated in the San Francisco Bay area. But his nonchalance over the matter partly reflects the fact that Facebook is, after all, a private company. It is free to host whatever views it chooses, and that freedom is for the better. Facebook is not like a public square. Instead, the scope of a user’s speech is largely discretionary: users select their own network of friends; they can choose to limit access to their posts to that group or to a broader group of “friends of friends”; they can limit posts to subgroups of friends; or they can allow the entire population of users to see their posts, if interested. No matter how many users it has, Facebook is still a private community. If its “community standards” or their enforcement are objectionable, then users can and should find alternative outlets. And again, as a private company, Facebook can choose to feature particular news sources and censor others without running afoul of the First Amendment.

Revisiting Facebook’s Business Model

The greatest immediate challenge for Facebook is data privacy. Trust among users has been eroded by the improprieties in Facebook’s exploitation of data. It’s as if everyone in the U.S. has suddenly awoken to the simple facts of its business model and the leveraging of user data it requires. But it is not of great concern to some users, who will be happy to continue to use the platform as they have in the past. Zuckerberg did not indicate a willingness to yield on the question of Facebook’s business model in his congressional testimony, but there is a threat that regulation will require steps to protect data that might be inconsistent with the business model. If users opt-out of data sharing in droves, then Facebook’s ability to collect revenue from advertisers will be diminished.

As Jonathan Zittrain points out, Facebook might find new opportunity as an information fiduciary for users. That would require a choice between paying a monthly fee or allowing Facebook to continue targeted advertising on one’s news feed. Geoffrey A. Fowler writes that the idea of paying for Facebook is not an outrageous proposition:

“Facebook collected $82 in advertising for each member in North America last year. Across the world, it’s about $20 per member. … Netflix costs $11 and Amazon Prime is $13 per month. Facebook would need $7 per month from everyone in North America to maintain its current revenue from targeted advertising.”

Given a choice, not everyone would choose to pay, and I doubt that a fee of $7 per month would cost Facebook much in terms of membership anyway. It could probably charge slightly more for regular memberships and price discriminate to attract students and seniors. Fowler contends that a user-paid Facebook would be a better product. It might sharpen the focus on user-provided and user-linked content, rather than content provided by advertisers. As Tim Wu says, “… payment better aligns the incentives of the platform with those of its users.” Fowler also asserts that regulatory headaches would be less likely for the social network because it would not be reliant on exploiting user data.

A noteworthy aspect of Zuckerberg’s testimony at the congressional hearing was his stated willingness to consider regulatory solutions: the “right regulations“, as he put it. That might cover any number of issues, including privacy and political advertising. But as Brendan Kirby warns, regulating Facebook might not be a great idea. Established incumbents are often capable of bending regulatory bodies to their will, ultimately using them to gain a stronger market position. A partnership between the data-rich Facebook and an agency of the government is not one that I’d particularly like to see. Tim Wu believes that what we really need are competitive alternatives to Facebook: he floats a few ideas about how a Facebook competitor might be structured, most prominently the fee-based alternative.

Let It Evolve 

Like many others, I’m possessed by an anxiety about the security of my data on social media, an irritation with the political bias that pervades social media firms, and a suspicion that certain points of view are favored over others on their platforms. But I do not favor government intervention against these firms. Neither antitrust action nor regulation is likely to improve the available platforms or their services, and instead might do quite a bit of damage. “Trust-busting” of social media platforms would present technological challenges, but even worse, it would disrupt millions of complex relationships between firms and users and attempt to replace them with even more numerous and complex relationships, all dictated by central authorities rather than market forces. Significant mergers and acquisitions will continue to be reviewed by the DOJ and the FTC, preferably tempered by judicial restraint. I also oppose the regulatory option. Compliance is costly, of course, but even worse, the social media giants can afford it and will manipulate it. Those costs would inevitably present barriers to market entry by upstart competitors. The best regulation is imposed by customers, who should assert their sovereignty and exercise caution in the relationships they establish with social media platforms … and remember that nothing comes for free.

Social Media Content Control

06 Friday May 2016

Posted by in Censorship, Marketplace of Ideas

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censorship

Do social media and networking platforms unfairly restrict speech and content by users expressing certain political views? Is the “marketplace of ideas” subject to entry barriers imposed by the platforms themselves? Twitter has been in the news recently for a “Block & Report Spam” feature whereby complaints can trigger a suspension. Some claim that leftists are gaming the system to take down certain posters. Twitter claims to never filter or moderate content proactively, but the system seems to invite abuse by activists at either end of the political spectrum.

Facebook admits that it attempts to enforce a set of “community standards” that cover the general areas of safety, respect (covering hate speech and nudity), security, and intellectual property. There is ample evidence, however, that enforcement of these standards is “arbitrary and capricious“. Examples range from inconsistent treatment of “Death to Israel” posts, images of buttocks, sculptures or drawings of body parts vs. actual body parts, and a variety of gay-themed images. These cases and many others are likely a consequence of different moderators responding to complaints differently in attempts to interpret and enforce rules that are vague by necessity. In addition, decisions to censor or suspend users are sometimes reversed by committee at higher levels, only to be made again later. And there have been allegations that content from advertisers is treated with a “lighter touch” than from non-advertisers. Perhaps the organization is simply trying to find a fair way to moderate the complicated social thicket, but the effort seems largely misplaced. A broader policy of content neutrality and allowing users to censor their feeds for themselves, as they are empowered to do, would avoid many of the inconsistencies.

Facebook also admits to employing contractors as “news curators”. This, and the mysterious disappearance of certain “trending topics” having a conservative bent, have led to strong complaints of blacklisting and censorship. The curators’ instructions from Facebook are described by Gizmodo:

“They were also told to select articles from a list of preferred media outlets that included sites like the New York Times, Time, Variety, and other traditional outlets. They would regularly avoid sites like World Star Hip Hop, The Blaze, and Breitbart, but were never explicitly told to suppress those outlets….  News curators also have the power to “deactivate” (or blacklist) a trending topic—a power that those we spoke to exercised on a daily basis. A topic was often blacklisted if it didn’t have at least three traditional news sources covering it, but otherwise the protocol was murky—meaning a curator could ostensibly blacklist a topic without a particularly good reason for doing so.“

This has the potential to create a bias in favor of certain viewpoints. If a trending topic comes from a source or involves a viewpoint that is not in favor, “news curation” amounts to a distasteful cover for outright political censorship. The Facebook system is also vulnerable to the sort of “mobbing” by activists that has been problematic for Twitter. Some of the complaints against unfair treatment by Facebook undoubtedly have merit. Such bias could have an influence sufficiently great to alter election outcomes.

Some forms of censorship on these platforms may be justified, such as preventing threats, abuse or harassment. As well, the platforms are required to comply with laws that are more restrictive in certain countries. Nevertheless, whatever the content standards, and whatever political bias might be created, the platforms are operated by private entities. They can do whatever they want, as much as anyone might hate it. The accusers are entitled to complain, of course, but they should bear in mind that these platforms are not exactly an open marketplace or a public square, however tempting it is to think of them that way. They could be open and free, given a more enlightened approach by the organizations that run them, but as things stand they are not. Positive action remains an option for those who object: agitate, package your content more carefully, or get off the platform and find an on-line community to your liking.

Truthy’s In The Eye of The Beholder

20 Monday Oct 2014

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Snoop on Civil Libs

Over the top: The federal government, through the NSF, is funding the development of a tool  to “mitigate the diffusion of false and misleading ideas, detect hate speech and subversive propaganda, and assist in the preservation of open debate.” Oh really? Should anyone find this reassuring? FCC Commissioner Ajit Pai condemns this initiative in the Washington Post. The project’s name is “Truthy,” a term credited to Steven Colbert, who otherwise seems to have nothing to do with it. Pai sums up the project nicely:

“Hmm. A government-funded initiative is going to ‘assist in the preservation of open debate’ by monitoring social media for ‘subversive propaganda’ and combating what it considers to be ‘the diffusion of false and misleading ideas’? The concept seems to have come straight out of a George Orwell novel.

The NSF has already poured nearly $1 million into Truthy. To what end? Why is the federal government spending so much money on the study of your Twitter habits?

Some possible hints as to Truthy’s real motives emerge in a 2012 paper by the project’s leaders, in which they wrote ominously of a ‘highly-active, densely-interconnected constituency of right-leaning users using [Twitter] to further their political views.’”

Does anyone of good faith on the Left actually think this is a good idea? And make no mistake: technology of this sort can be reversed. If anyone on the Left thinks it’s a good idea, are they willing to live with the consequences if things don’t go their way, say, if their avowed enemies take power? Have some more Pai:

“To those who wish to shape the nation’s political dialogue, social media is dangerous. No longer can a cadre of elite gatekeepers pick and choose the ideas to which Americans will be exposed. But today’s democratization of political speech is a good thing. It brings into the arena countless Americans whose voices previously might have received inadequate or slanted exposure.

The federal government has no business spending your hard-earned money on a project to monitor political speech on Twitter. How should it instead have reacted when funding for Truthy was proposed? The proper response wouldn’t have required anywhere near 140 characters. It could have been, and should have been, #absolutelynot.“