The Best of “Big Tech” (Part – II)

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Following our previous post from yesterday, listed below is the next set of links. Happy reading !!

Rowland Manthorpe, Google’s Nemesis: Meet the British Couple who took on a Giant, Won… and Cost it £2.1 billion (Wired)

Rahul Matthan, Google’s Play Store Policy isn’t Simply About Toll Charges (Mint)

Manish Singh, Indian Startups Explore Alliance and Alternative App Store to Fight Google’s ‘Monopoly’ (TechCrunch)

Prasid Banerjee, CCI Seeks Investigation on Allegations against Google for Play Billing, Pre-Installation of Google Pay on Android Phones (Mint)

R. Jagannathan, Marx Misread Capitalism but We Must not fall into the Same Trap (Mint)

Kelvin Chan, EU Files Antitrust Charges Against Amazon Over Use of Data (AP)

Katie Canales, Apple was Just Slapped with a Lawsuit that Accuses the Company of Monopolizing the Mobile-Gaming Market by Blocking Apps like Xbox Game Pass and Google Stadia (Business Insider)

AP, Google to Pay $1 Billion Over 3 Years for News Content (Times of India)

Marcy Gordon, For Big Tech, Biden Brings a New Era but no Ease in Scrutiny (AP)

The Best of “Big Tech” (Part – I)

1_q0d3YtCWwrN5D_HQ2iE5sQThe past two months were inundated with articles and opinions on “Big Tech”, to the point that with literally everybody fulminating on their respective (and often repetitive and generic) opinions, I got completely put off from writing any of my own. 

Things seemed to have cooled down for sometime though, with a new administration about to take over in the U.S. and the mundane grunt work of investigations underway elsewhere including India, and I thought why not put out a list of the best and most prominent news events and opinions concerning Big Tech ? So listed below, in no particular Order, are in my personal opinion, some must read reports, write ups and op-eds on all that’s been going on since “Big Tech” became the next giant problem to tackle after Climate Change and Inequality. I may or may not agree with everything that’s been written in these, but its always important to read and attempt to understand views contrary to your own as well. 

Salil Tripathi, Saving the News Biz from Google, Facebook (Mint) 

Cheng Leng, Keith Zhai and David Kirton, China preparing an Antitrust Investigation into Google – Sources (Reuters)

Tom Warren, Microsoft Hits Out at Apple with its New Windows App Store Policies (The Verge) 

Shivdeep Dhaliwal, Microsoft Plans to Skirt Apple Ban on Cloud Gaming Apps Via Browser – Based Service (Benzinga)

Mihir Dalal and Prasid Banerjee, Why Vocal for Local Won’t Bother Google (Mint)

Bloomberg Wire Agency Feed, E.U.’s Failure to Hit Google Where it Hurts is a Lesson for U.S. (Mint)

Ajai Sreevatsan, How Big Tech Reset will Impact India (Mint)

Aaron Holmes, Tech Giants have Skirted Regulation because of how Monopolies are defined by law. Democrats Now Want to Rewrite Those Laws (Business Insider)

Gerrit De Vynck and David McLaughlin, U.S. Antitrust Case Against Google Mimics Lawsuit that Attacked Microsoft (Business Standard – via Bloomberg)

AFP, Google Strikes Payment Deal with French Media (Economic Times)

 

Collective Dominance in Competition Law

So the people at Virtual Lawyer (Check them out on Instagram and Facebook) recently got in touch to deliver an online talk on a topic of my choosing, and I was more than happy to grab the opportunity to verbally regurgitate on an issue which doesn’t get its due attention, yet which is slowly gaining relevance as the competition climate in our economy changes – Collective Dominance in Competition Law.

My apprehension of it being too niche topic was fortunately belied, as the ‘Question and Answer’ session refused to end and we had to start a fresh meeting to try to go through them all. 🙂 🙂

The links to YouTube videos can be found here and here.

An in case you prefer Instagram IGTV, then here and here.

A big thank you to Virtual Lawyer for letting me rant in public. 🙂

Foundation of Media Professionals v. Union Territory of Jammu and Kashmir and Anr., Writ Petition Diary No. 10817 of 2020 : Another Opportunity to press for Right to Internet ?

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The Union Territory of Jammu and Kashmir (which before the Supreme Court is almost always represented by a Counsel for the Union of India) a few days ago filed an Affidavit expressly making a statement that the right to access the internet is not a fundamental right. To quote the text verbatim below:

“It is submitted that the right to access the internet is not a fundamental right and thus the type and breadth of access for exercising the right to freedom of speech and expression under Article 19(1)(a) and/or to carry on any trade or business under Article 19(1)(g) of the Constitution of India (CoI) through the medium of internet can be curtailed….”

The submission was made in the specific context of the action of the Union to not allow the speed of the internet to be more than that of a 2G cellular network. But my excitement at this statement is not a rage against any high handedness (which is presently sub-judice before the Court) by the administration but rather the opportunity which once again arises to argue a right to internet access !!

It appears to be a common misconception among the public that the Supreme Court has settled this question once and for all in Anuradha Bhasin v. Union of India and Ors., W. P. (Civil) 1031 of 2019. On the contrary however, it specifically observed that:

“28. None of the counsels have argued for declaring the right to access the internet as a fundamental right and therefore we are not expressing any view on the same. We are confining ourselves to declaring that the right to freedom of speech and expression under Article 19(1)(a), and the right to carry on any trade or business under 19(1)(g), using the medium of internet is constitutionally protected.”

Rather, what it went on to hold was that:

“…the freedom of speech and expression and the freedom to practice any profession or carry on any trade, business or occupation over the medium of internet enjoys constitutional protection under Article 19(1)(a) and Article 19(1)(g). The restriction upon such fundamental rights should be in consonance with the mandate under Article 19 (2) and (6) of the Constitution, inclusive of the test of proportionality.” (Emphasis added)

Yes, I agree that there is scope for a submission that the answer might be the same even if the issue was worded differently to specifically make submissions on the right to access the internet, but that doesn’t degrade the importance of the issue and its affect on policy matters such as Network Neutrality, concerning which passionate arguments from both sides of the fence tend to be based, at their core, on the  right of access to the internet !! (The difference between the two sides is the interpretation of such a right and what is encompassed within it.)

The Court also itself recognised that it the issue could not be simply dismissed as irrelevant and required some serious consideration, if not on that day, then definitely someday later. Certain paragraphs in the first half of the Judgement are encouraging.:

“22. Now, we need to concern ourselves about the freedom of expression over the medium of internet. There is no gainsaying that in today’s world the internet stands as the most utilized and accessible medium for exchange of information. The revolution within the cyberspace has been phenomenal in the past decade, wherein the limitation of storage space and accessibility of print medium has been remedied by the usage of internet.

23. At this point it is important to note the argument of Mr. Vinton G. Cerf, one of the ‘fathers of the internet’. He argued that while the internet is very important, however, it cannot be elevated to   the status of a human right. Technology, in his view, is an
enabler of rights and not a right in and of itself. He distinguishes between placing technology among the exalted category of other human rights, such as the freedom of conscience, equality etc. With great respect to his opinion, the prevalence and extent of internet proliferation cannot be undermined in one’s life.

24. Law and technology seldom mix like oil and water. There is a consistent criticism that the development of technology is not met by equivalent movement in the law. In this context, we need to note that the law should imbibe the technological development
and accordingly mould its rules so as to cater to the needs of society. Non recognition of technology within the sphere of law is only a disservice to the inevitable. In this light, the importance of internet cannot be underestimated, as from morning to night we are encapsulated within the cyberspace and our most basic activities are enabled by the use of internet.

25. We need to distinguish between the internet as a tool and the freedom of expression through the internet. There is no dispute that freedom of speech and expression includes the right to disseminate information to as wide a section of the population as is possible. The wider range of circulation of information or its greater impact cannot restrict the content of the right nor can it justify its denial. [refer to Secretary, Ministry of Information & Broadcasting Government of India v. Cricket Association of Bengal, (1995) 2 SCC 161; Shreya Singhal v. Union of India, (2015) 5 SCC 1].” (Emphasis added)

My only disgruntlement is with the first line of paragraph twenty five which has been quoted above, because I am firmly of the opinion that the internet cannot and should not be classified as a tool, but rather as a resource which is used by individuals and entities to create tools and services for mankind. I’ve focused on this here and here, and am now thinking of doing a separate piece altogether on the justification for such a classification.

Hopes can be belied of course, and with the present Covid – 19 situation in New Delhi, it’s best not to hazard a guess as to when the Court will start functioning on a regular schedule again, and even if it does, whether such full fledged arguments as I hope for will even actually take place. But then, no harm being optimistic. 🙂

Foundation of Media Professionals v. Union Territory of Jammu and Kashmir and Anr., Writ Petition Diary No. 10817 of 2020. [An Update]

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As per Bar and Bench, A three judge bench of the Supreme Court led by Justice NV Ramana  today heard detailed submissions on behalf of all the parties and reserved orders on the batch of matters concerning internet access in Jammu and Kashmir.

On a reading of the LIVE updates provided by Bar & Bench, it appears that the petitioners chose to not specifically argue a right to internet access but rather toed a line similar to that in Anuradha Bhasin, by emphasizing that the “Right to education” and “Right to healthcare” was being hampered due to the slow internet speeds.

Facebook – Reliance Jio Tie up: Try, Try and Hope that you will Succeed.

collag_660_220420094005(Business Today)

Initial informed rumours have finally culminated in an official announcement a few hours ago.  Facebook will invest an amount of Rs. 43,574 crores for a 9.99 percent stake in Reliance Jio Platforms. The limited percentage is probably to prevent the investment from facing a regulatory hurdle before the C.C.I.

(Official  video statement by Mukesh Ambani via Moneycontrol)

Financially, it makes sense for Reliance. It has for some time now been scouting for means to reduce Jio’s growing debt burden, and with the Reliance – Aramco investment deal definitely on hold for the foreseeable future as a consequence of the oil market debacle, it seems to have worked out fine for him (AS USUAL, if I may add). And an operations and commercial tie up with Facebook can only accelerate Jio’s growth and dominance in the country, and perhaps, over time even abroad (Africa is still one of the major markets with relatively low mobile and internet penetration).

Facebook, on the other hand, is relishing the opportunity to take another crack and penetrating the Indian market beyond social media (Remember the PR disaster that was “Free Basics” ?? – Our previous posts can be found here and here). And what better way to do it than to invest in the telecom company with officially the largest user base in India as well as revenue. Add to this the double icing on the cake which is the series of acquisitions made by Jio over the last three to four years with the obvious intent to create a formidable digital platform and the Promotor of the Company being without a doubt the biggest corporate influencer in the country.  In fact, subject to correction, “Free Basics” seems to have been the first attempt by both the companies to try to work together and this is the second major attempt. Looks like Facebook has learnt a few lessons from its previous debacle.

While my previous concerns with Facebook’s attempts to penetrate the Indian market were primarily concerning network neutrality and the threat of information manipulation which accompanies Facebook everywhere in its “walled garden”esque operation style, a lot has happened since then. Typical of technology, issues concerning such investments have now jumped to a whole new dimension, where every big technology company is under scrutiny in multiple jurisdictions on competition and privacy concerns.  In the past, the transaction probably shouldn’t have raised much concern for competition enforcers because Reliance would not be competing directly with Facebook. Today however, concerns are mounting on how tech companies are leveraging their control over data to push their own dominance not just in their original market, but also across vertical segments. And Facebook’s acquisition of both WhatsApp in 2014 and Instagram in 2012 has already created a Social Media behemoth which many worry about.

Even though C.C.I. has only recently begun to take nascent steps in examining Big Tech transactions, there is an additional dimension to the Reliance – Facebook tie up which definitely merits the C.C.I. taking the transaction seriously. My personal opinion is that this will definitely go through without any major hiccup, but how the two companies cooperate commercially is something to keep a watch on. Jio has today forayed into almost every form of digital media, including social media (Jio Chat). This coalescence which one sees in Jio’s acquisitions is however, not innovative. It is merely copying the playbook of a number of companies all across the planet, the most notable and successful examples being Alibaba and Tencent, of building entire ecosystems of digital media, communications and commerce with B2B and B2C connect. Google appears to have succeeded the best at this outside China, with a Google ID sign in now becoming a norm for most login transactions and a Google App available for almost every internet transaction you can think of. (On a side note, Google’s acquisition of FitBit has also raised similar concerns). Consequently, the lines between social media and other forms of entertainment have blurred over time.  Facebook was simply late to the game, and is now playing catch up, and since it suffers from no dearth of cash, such investments help it to gain ground quickly, with a long term potential growth with Jio helping it to succeed where it has managed to only take a few tottering steps till now.

 

In Re : Reference to the discontinuation of Internet Services by the State Authorities.

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So we finally have our first petition on the internet as an essential service !! The Allahabad High Court, has suo moto, in In Re : Reference to the discontinuation of Internet Services by the State Authorities (unnumbered as of now it seems), issued notice to the State of Uttar Pradesh for the internet blackouts which have been prevalent across the state since the protests against the Citizenship (Amendment) Act, 2019 began.

The Notice was actually passed on 20.12.2019, but took some time to come out in public (the Registry needs the internet to upload the order on the website right !!) In fact, it was problems in the performance of judicial work which raised the hackles of the court in the first place.

The matter was directed to be listed on 03.01.2020, but I did not find the matter on the cause list uploaded on the website and haven’t received any updated on it as of now. Will keep you posted on it.

The “Lifeline Program”: A Perfect example of how NOT to promote Digital India.

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At the very outset, in all fairness, India as on date does not have a program similar to the “Lifeline Program” of the F.C.C., but it doesn’t hurt to put out a pre-emptive rant to make sure they never even consider one in the future.

BACKGROUND

As per the website of the F.C.C., the Lifeline Program for Low Income Consumers  has since 1985, provided a discount on phone service for qualifying low-income consumers to ensure that all Americans have the opportunities and security that phone service brings, including being able to connect to jobs, family and emergency services. Lifeline is part of the Universal Service Fund. The Lifeline program is available to eligible low-income consumers in every state, territory, commonwealth, and on Tribal lands. The Lifeline program is administered by the Universal Service Administrative Company (U.S.A.C.). The U.S.A.C. is responsible for data collection and maintenance, support calculation, and disbursement for the low-income program. Cellphone subscriptions were included in 2005. Furthermore, On 31st March, 2016, the F.C.C. adopted a comprehensive reform and modernization of the Lifeline program. In the 2016 Lifeline Modernization Order, the Commission included broadband as a support service in the Lifeline program. The Commission also set out minimum service standards for Lifeline-supported services to ensure maximum value for the universal service dollar, and established a National Eligibility Verifier to make independent subscriber eligibility determinations.

PROBLEMS

The program is definitely a laudable initiative, and considering the high cost of mobile service in the U.S., probably a much needed initiative which recognises digital communication service as an essential service. Maybe it even implies it as a human right, though the same is no where expressly mentioned. However, the pitfalls of the program have led to severe criticism against it, with the current dispensation more than happy to cut its budget and probably let it die a slow death.

The problems with the Lifeline program are the same which so many government subsidy programmes and poverty alleviation programmes  In India suffer from: inflated costs, allegations of fraud, lack of access to key systems and data to weed out inefficiences and fake enrollments. and the hard reality is, the deficiencies in such a program can never be fully eradicated. All one can constantly focus on is the benefits out weighting the costs. But the core reason why the program suffers from so many issues because it chooses to focus on individual benefits rather than provide macro solutions to the problem of affordable access.

UNIVERSAL SERVICE OBLIGATION IN INDIA: THE WAY TO CONTINUE ONWARDS

This is where we in India are fortunately doing a better job under the Universal Service Obligation Fund. 

The Universal Service Obligation Fund (U.S.O.F.) is the primary scheme administering spread of broadband connectivity in rural areas. According to the Department of Telecommunications (D.o.T.), “…apart from the higher capital cost of providing telecom services in rural and remote areas, these areas also generate lower revenue due to lower population density, low income and lack of commercial activity. Thus normal market forces alone would not direct the telecom sector to adequately serve backward and rural areas. Keeping in mind the inadequacy of the market mechanism to serve rural and inaccessible areas on one hand and the importance of providing vital telecom connectivity on the other, the New Telecom Policy – 1999 (NTP’99) provided that the resources for meeting the Universal Service Obligation (USO) would be raised through a ‘Universal Access Levy (UAL)’, which would be a percentage of the revenue earned by the operators under various licenses. The Universal Service Support Policy came into effect from 01.04.2002. The Indian Telegraph (Amendment) Act, 2003 giving statutory status to the Universal Service Obligation Fund (USOF) was passed by both Houses of Parliament in December 2003. The Rules for administration of the Fund known as Indian Telegraph (Amendment) Rules, 2004 were notified on 26.03.2004. As per the Indian Telegraph Act 1885 (as amended in 2003, 2006 and 2008), the Fund is to be utilized exclusively for meeting the Universal Service Obligation.” In summary, the U.S.O.F. uses

The recently cabinet approved National Digital Communications Policy, 2018 further pushes four initiatives to be funded by USOF:

(i) BharatNet: Providing 1 Gbps to Gram Panchayats upgradeable to 10 Gbps
(ii) GramNet:  Connecting all key rural development institutions with 10 Mbps upgradeable to 100 Mbps
(iii) NagarNet: Establishing 1 Million public Wi-Fi Hotspots in urban areas
(iv) JanWiFi:  Establishing 2 Million Wi-Fi Hotspots in rural areas

These targets are ambitious, and they may not even be achieved during the duration of this policy at all, but achieving even fifty percent of this target would be a fantastic growth in internet access to the underprivileged.