The only new legislation I'd like to see enacted is for these social media and data aggregators to be split into two companies: the interface company, which would exist to serve their interface, and a data utilities company, which would exist to serve the data they don't own. This would open their data market for hacking upon, in the spirit of what you suggest and enabled by the repeal of the legislation you've outlined.
The only way towards greater freedom is to make the world freer.
Harks back to the antitrust action splitting train lines from steel producers in the 1920s. You need steel to make rail, and you need rail to transport steel, and the steel barons got rich by integrating across these two domains and giving themselves massive discounts compared to participants who were only in one industry and not both.
I'm not sure exactly what the details or enforeement would look like here but I do think it's an interesting line of thought. One thing Matt Stoller says with respect to antitrust legislation is that every company is a unique situation and should be handled as such.
How would any third-party client win the inevitable arms race this would initiate and what would stop your system from re-centralizing? Also how would any infrastructure become 'public' when it can't marshall the public interest or allocate resources via legislation?
Yes, I believe we lost the public nature of the internet by adopting regulation like the DMCA.
> How would any third-party client win the inevitable arms race this would initiate and what would stop your system from re-centralizing?
Attrition. Facebook would have to realize at some point that they can't stop their client from being reversed and can't prevent clones from popping up. Right now, they can stop that, but they stop it with laws not with technology. Without that protection, Facebook could never keep up with the whole internet collectively reverse engineering their apps out in the open. Also FB engineers would know that being on the DRM team is a waste of time and nobody would want to do the work.
> Also how would any infrastructure become 'public' when it can't marshall the public interest or allocate resources via legislation?
As another commenter pointed out, I shouldn't have used the term "public infrastructure" when referring to the internet, because it's largely privately owned and not regulated as a public utility, which is true.
What I mean is that if you're going to open up a public web server and publish a free app in an app store, I should be able to interact with your servers however that app does it without committing a crime. And I should be able to publish my own app that interacts with your servers too, without your claim to intellectual property standing in the way.
I think this would cause companies like Twitter and Facebook to lose their entire market, but the core of the service would be maintained by the community of people interested in the service.
So for example, if there were 10 Twitter clients allowed to exist and be above-board companies, and they captured 80% of the Twitter client market share, then there could be a serious push to invent or adopt a new protocol to serve their users and de-federate Twitter themselves if they don't want to go along with the protocol.
I think that's a really solvable technical problem and all the privacy activists would have great reason to pick up an editor and join the fight. But as it is now, regulation has made that type of activity illegal, because it would infringe on Twitter's rights.
One thing I'm cautiously interested in is the anti-corporate action taking place in China over the last couple months. From my view on the sidelines as an American, the Chinese Politbureau seems to have just up and deemed certain profitable business models counterproductive for their view of society, and just laid down the hammer to say that those companies can't be profitable anymore. Specifically they did this for private test-prep/tutoring companies--they have to be nonprofits now.
I think the US doesn't have the state capacity or the political will to do something quite so hard hitting. Maybe we say that ad companies can only have X percent profit margin, and above that their tax rates increase? Force companies to invest their earnings in non-ad technologies? Not exactly sure.
Speculation aside, I like your point about a 3rd party ad-free facebook client. This mirrors what another commenter mentioned about the platform/participant distinction. This could mirror the antitrust action taken against Microsoft in the 90s, maybe we say that facebook has to open up their internal APIs such that third party people people should be able to make their own clients.
The weird thing here is that the client app isn't really facebook's business model, right? The marketplace facebook creates is to their ad buyers, the users are subjected to that on the back-end. Maybe the ad marketplace should be made public in some way? Could imagine at least forcing the ad marketplace to operate like a 'lit' exchange where bids and offers are visible by all participants. Not sure what this would actually solve though.
It's been said before but Facebook should've never been allowed to buy Instagram.
More concretely there's room for small incrementalist pieces of legislation which could help shift the landscape in beneficial ways, like Australia's laws forcing social media networks to pay news media sites for their content. [0]
Matt Stoller's not perfect but I like a lot of his stuff on antitrust news, some links below [0] https://mattstoller.substack.com/p/australia-forced-google-a... https://mattstoller.substack.com/p/facecrook-dealing-with-a-...
Thanks for taking the time to reply, these discussions are much more interesting on HN than anywhere else on the internet.
Your line of thinking really drives me crazy because I feel like we're so close to agreeing. The horseshoe is almost touching in this thread.
I don't know enough about China to know if their societal engineering efforts are considered successful, but I do know enough to see the parallels to the regulatory solutions that you're floating.
I think these are all well intentioned but terrible ideas:
> can only have X percent profit margin
Profit margins can be engineered with creative accounting. You can't practically do this.
> Force companies to invest
I don't even know how you would force a company to invest in something. Generally you'd tax or subsidize them, but in either case you're disrupting market forces.
> maybe we say that facebook has to open up their internal APIs
This would actually help the situation in the short term, but it's still not a good idea. Facebook would continue asserting intellectual property rights on the data they serve and entrench them as a public utility. The goal here should be to create an environment that's hostile to Facebook by protecting them less.
> forcing the ad marketplace to operate like a 'lit' exchange
The ad marketplace doesn't need to be transparent, because Facebook can't actually compete for attention if they lose government protection of their IP or government protection from the harm caused by their UGC. If Facebook didn't have these protections, we wouldn't need to worry about the marketplace because their business would fail.
Though Facebook is currently in a position to easily commit undetectable fraud on ad buyers. The low quality of their market should be another reason to not use Facebook. The reason we don't have a transparent and competitive ad market is because Facebook gets to decide the rules for their marketplace.
> Facebook should've never been allowed to buy Instagram.
I don't think they should have been prevented from buying Instagram. If they didn't own them, they'd just share data anyway for mutual benefit. Who owns the stock is separate to me from the abusive products they produce.
> forcing social media networks to pay news media sites for their content
News media sites are their own problem, but they shouldn't get a special carve out for being paid to be indexed. If they don't want their content public on the internet, they shouldn't publish it. Once they do, they should assume it can be liberally indexed/mirrored/redistributed.
I think we'll ultimately see blockchain solutions take over the space, because fundamentally they work and are an unstoppable technology.
It's also possible that all these regulations don't have any of their intended effects, but are still successful in crippling Facebook by making its operation very restricted. In other words, use regulation to make Facebook a worse product, to the point where the users organically leave.
The best outcome would be if we simply got rid of all these silly intellectual property protections and let the chips fall where they may. That would end a lot of media companies, but it'd be better than the problems they've caused.
A good outcome is that social media companies eventually lose their users organically, through some combination of onerous regulations that can't apply to decentralized projects, and new technologies that don't fit their business model simply being better.
A bad outcome is if governments adopts social media in official ways, it becomes essential to government business and therefore gets regulated into permanence. This blurs the line between what it means to have a Facebook account as opposed to an internet connection. That's probably where Facebook will take us if they can write the regulations. Maybe to vote or do some other government business, I'll need to let Facebook verify my identity, which will be fine, because it's totally regulated and normal.
I've read a lot of posts on HN about the "aha" moment of people using metamask for the first time. I think we're going to see a new wave of internet technologies that obsolete things like Facebook and Twitter very quickly. They might also be way more damaging and worse, but they won't be companies and they won't be able to be regulated. I'm not sure how that plays out, but we'll figure it out when we get there, because that's where we're going.
I agree with everything you've except what's quoted above. How is FAANG using public infrastructure, when private companies own everything from the undersea cables to the servers?
I believe that legislation got us into the Facebook problem in the first place. If you disagree, please take the time to correct me instead of downvoting my opinion out of existence. I'm open to a change of mind. Here's how I see it:
All of these social media companies have one thing in common: they exist to sell ads. We don't really know what Facebook would have looked like as a subscription service, because it wouldn't have ever become dominant.
For ads to work best, they have to be targeted at users. This incentivizes data collection that helps with ad targeting, which is pretty much everything.
But for ads to work at all, the user has to actually see the ad. This incentivizes engagement, because you need attention on your ad for the ad to have value. If you need engagement, you have to find a way to reach users. This is quite good if your business is selling ads, as you already have all of the data. And so the cycle of collecting and using data for acquisition goes on forever.
Since the very beginning of the ad business, companies like DoubleClick (later acquired by Google) have stretched the limits of web technology to make all of this work. Pixel bugs, cookies, app SDKs, all kinds of tricks, anything they can do to get more data about the user, because that's the gas that makes the whole engine run.
Users, however, are prevented by government regulation from stretching the limits of technology to fight back against these companies.
Have you ever wondered why there isn't a large market for paid alternative Twitter clients that cut out ads and data collection? There used to be, back when Twitter had a very permissive view of their data. Then Twitter changed the rules and now it's a grey area if using their private API with an app-extracted key is a crime or not. It's certainly not something you can build a company on.
So the situation here is that social media companies rely on you not being able to "hack" because there are legal protections on how you can interface with their public-facing internet servers and what you can do with the data that those servers send in reply. Because of legislation like the DMCA, paid for by media companies, users never even got the chance to fight on the same technical battleground where they were already being exploited by ad companies.
As I see it, these companies are using public infrastructure when it suits them. If a computer client is allowing third-party cookies, well, that's just downright reasonable to use for ad tracking. But if you alter a query string, you might be a criminal. That's where regulation has got us.
If Facebook is to be regulated, you can be sure that they'll write the regulation.
My litmus test for if there's a free market situation here: Are you free to make an alternative ad-free Facebook client that uses private APIs extracted from the real Facebook app? Because if the answer to that is no, as it has been since these companies have existed, then no amount of regulation is going to improve the situation.
User rights and privacy is a fight we could win technically without some very specific computer and copyright laws. We need to get back to the idea of the internet being public infrastructure.
If there was some change to the law that suddenly let people build better Facebook clients without fear of being sued into oblivion or even arrested, then I think we could finally get these companies under control.