Ownership

In general, we think the integration of Facebook Messenger, WhatsApp, and Instagram has the potential to be beneficial for consumers -- if done right. We still need more details from Facebook’s plan to monetize this move in order to fully understand its privacy implications. However, we believe that there’s a lot of positive potential in this move. Making WhatsApp-level end-to-end encryption the standard for Facebook Messenger and Instagram would in one simple move radically improve the privacy and security of the communications of millions of people.

A string of controversies in recent years involving tech companies has led many observers to call for stronger antitrust enforcement and a tougher competition policy. A new addition to this public demand comes from an unlikely source: In Nov 2018, the Supreme Court heard oral arguments in a case brought by Apple to dismiss a lawsuit from Robert Pepper and three other iPhone owners. The defendants in Apple Inc. v. Pepper accuse the company of acting like a monopolist by controlling which apps to publish in its app store, taking a cut of sales, and prohibiting other app distributors.

From Louis Brandeis’s perspective, application of antitrust laws required both the embrace of hard-headed inquiry, spanning economics and the social sciences, and the litigator’s skill of distilling crucial facts. Brandeis’s work as a lawyer in private practice, his stint as special counsel to the Interstate Commerce Commission (ICC), and his time on the bench demonstrate his commitment to solving social and economic problems, examining the practical reality of economic circumstances, and serving the purposes of the law with rigor and commitment.

Department of Justice antitrust chief Makan Delrahim says that the DOJ will be holding a two-day workshop on the impact of online advertising on the local broadcast TV market, and whether it should adjust its merger reviews given the argument that the edge is now competing for the local car dealer ads and should be considered part of the relevant competitive market. Justice has been considering the issue in relation to a couple of recent merger reviews, Delrahim pointed out, specifically the aborted Sinclair-Tribune merger, and the follow-up Nexstar-Tribune merger.

Facebook CEO Mark Zuckerberg is planning to integrate the underlying infrastructure of Facebook Messenger, Instagram, and WhatsApp, allowing users to message each other between apps, but some lawmakers, regulators, and security experts are already beginning to question whether the benefits outweigh the consequences. “Good for encryption but bad for competition and privacy,” tweeted Seante Communciations Subcommittee Ranking Member Brian Schatz (D-HI). Sen Richard Blumenthal (D-CT) said, “Facebook and Google’s dominance over data has already harmed consumers and the economy.

Telefónica took a small bite out of its debt load by selling off two of its operations in Central America to América Móvil for $648 million. América Móvil, which is owned by billionaire Carlos Slim, has competed against Telefónica in Latin America for several decades, but Telefónica has struck a deal to sell its operations in Guatemala and El Salvador.

Earlier this month we examined how partisan division at the Federal Communications Commission impedes progress towards closing the digital divide. Now, we review another big telecom policy story from 2018: the democratic harms of “Big Tech”. In 2018, we got a better, but more disturbing, understanding of the size and influence of large technology companies (Apple, Amazon, Facebook, Google, and Microsoft), and particularly how social media platforms affect our democratic discourse and elections.

Advocacy groups urged the Federal Trade Commission to order a breakup of Facebook after the agency concludes its investigation into the company’s handling of the Cambridge Analytica scandal. The groups, led by the Electronic Privacy Information Center, wrote in a letter to FTC Chairman Joseph Simons that modest enforcement actions would not be adequate to curb Facebook’s privacy practices. They urged the FTC to require Facebook to divest from subsidiaries like WhatsApp and Instagram and to i