Why FTC Needs to Rethink Tech Regulation

🌈 Abstract

The article discusses the author's skepticism towards government regulators, such as the FTC and DOJ, in their ability to effectively control and bring about meaningful change in the technology industry, particularly in relation to "Big Tech" companies. The author argues that the current regulatory system is not equipped to consider long-term implications in a rapidly evolving technology landscape.

🙋 Q&A

[01] Skepticism towards government regulators

1. What are the author's main concerns regarding government regulators' ability to control and bring about change in the technology industry?

• The author is skeptical that government regulators, despite their good intentions, can effectively control and rein in Big Tech companies in a timely, impactful, and meaningful way in the long run.
• The current regulatory system is not set up to consider regulations in a long-term fashion in the fast-paced, technology-driven world.
• The author believes regulators have overplayed their hand, leading to unintended consequences such as large companies becoming more cautious about acquisitions and startups staying private to avoid scrutiny.

2. How does the author view the FTC's efforts to create opportunities for non-Big Tech companies?

• The author believes the reality of the technology ecosystem is very different from the FTC's ideological position of wanting startups to stay independent and compete with existing Big Tech companies.
• The author argues that a significant amount of tech dynamism is driven by startups that are acquired by larger companies after a "half-decade push", which the FTC's actions are now curtailing.

3. What are the author's views on the impact of regulatory actions on startups and the technology ecosystem?

• The author suggests that most startups, even if successful like Figma, may not have the luxury of time to reach the level of success of companies like Stripe, as technological shifts are happening at an escalating rate.
• The author is concerned that without acquisition exits or public offerings, the fate of many startups that cannot scale to the level of Figma or Stripe is uncertain.

[02] Rethinking monopoly definitions and regulatory approaches

1. How does the author suggest regulators should approach defining and addressing monopolies in the digital age?

• The author argues that regulators have incorrectly focused on "desktop" as the monopoly in the case of Microsoft, when the real advantage was in "developers".
• The author suggests that regulators should rethink what constitutes a monopoly and how it extends into the future, focusing on the control of digital identities and data as the real ground truth for regulation.

2. What does the author see as the limitations of the current regulatory approach?

• The author believes that regulation often comes at the very end of a technology cycle, when the natural shifts in the industry have already occurred.
• The author criticizes the lack of long-term thinking and common sense in Washington, where consumer rights and interests are sacrificed to party loyalty and the pursuit of post-office riches.