Vol. I, No. 1The week of
Washington takes on search, phones and the lab that wrote its own rules.
Power and who holds it
From the editors
This first issue turns on a single question: who may set the terms of the technology business, and who may overrule them. Washington is pressing its case against Google, Microsoft is paying for its place beside OpenAI, and OpenAI's board used the power its charter gave it, only to lose within five days. We try to say where each argument is strong, where it is weak, and what each side would do with the power it asks for.
In this issue
Leaders
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Platform power
Deplatforming needs rules and an appeal
Twitter and Facebook were within their rights to cut off Donald Trump, but a power this large needs published rules and an appeal, not a decision made on a Friday evening
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Australia v Facebook
Copy Australia’s leverage, not its law
Australia was right that platforms hold too much power over news, but pricing links is clumsy, and other countries should copy the leverage, not the mechanism.
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Privacy and power
Apple should obey its own privacy rule
Apple’s tracking prompt is good for users and better for Apple, so regulators should insist that the firm lives under the same rule it imposes on everyone else
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OpenAI’s governance
A charity cannot steer OpenAI
OpenAI’s board did what it was built to do and lost within five days, which shows that competition and the law, not a charity, must steer the lab.
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Acqui-hires and merger review
Review acqui-hires as mergers
Microsoft’s hiring of Inflection’s leaders and staff should be reviewed as the merger it resembles, because a deal that moves a company’s people but not its shares is still a deal
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The CrowdStrike outage
Blue screen of debt
The CrowdStrike outage shows that firms with deep access to everyone’s computers should be regulated as infrastructure, with staged updates and liability, not as vendors who can disclaim everything.
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America v Google
Spare the Chrome
Judge Mehta was right to leave Google its browser and phone software, and America should now make the data-sharing order work rather than appeal for a break-up.
Business & Finance
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Microsoft and OpenAI · Giannini
Microsoft’s OpenAI bet is a cloud order
Microsoft’s $1bn bet on OpenAI is less a punt on thinking machines than a prepaid order for its own cloud, and that makes it a shrewd one
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Salesforce and Slack · Giannini
Let Salesforce buy Slack
Regulators should wave through Salesforce’s $27.7bn purchase of Slack, which adds a serious rival to Microsoft; the price is a matter for Salesforce’s shareholders.
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Amazon’s succession · Giannini
Amazon’s succession follows the money
Jeff Bezos has picked the man who built the firm’s profits, and the choice says more about where Amazon earns its money than about who will run it.
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Broadcom and VMware · Giannini
VMware’s customers will pay for Broadcom
Broadcom’s $61bn price for VMware is hard to earn back without raising bills, so regulators should ask whether customers can walk away.
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Twitter and Elon Musk · Giannini
No owner can fix Twitter’s business
Mr Musk has paid full price for a loss-making firm whose customers can leave at will, and no change of ownership will fix that.
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Meta’s year of efficiency · Giannini
Meta’s efficiency still lacks a purpose
Investors have rewarded Meta for spending less, which is sensible, but efficiency is a means and the firm has yet to say what it is for.
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Microsoft’s market value · Giannini
Microsoft’s valuation rests on a chatbot
Investors have priced Microsoft as the winner of the AI race, yet the prize still depends on customers paying $30 a month for a chatbot.
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Alphabet’s capital return · Giannini
Alphabet’s cash outgrew its ideas
Alphabet’s first dividend says less about a maturing firm than about a cash pile that outgrew its owner’s ideas for it.
Policy & Regulation
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Facebook’s Libra · Warren
Make Libra obey the money rules
Congress should neither strangle Libra nor wave it through, but test whether Facebook will submit to the rules that bind everyone else who handles other people’s money.
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Transatlantic data · Warren
America should change its surveillance law
Europe’s court was right that American surveillance law fails its tests, and Washington should change that law rather than patch up a third doomed deal.
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America v Google · Warren
Feeling lucky
The Justice Department’s case against Google is narrower than its critics fear and better aimed than its fans realise, and its target should be the price of the default.
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America v Facebook · Warren
Face value
The government has a fair case that Facebook bought a rival it feared, but a break-up is the wrong cure, and its own past clearance of the deals is its weakest point.
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Lina Khan at the FTC · Warren
Lina Khan should enforce the law first
Lina Khan is right that antitrust has grown too fond of low prices, but she will do more by winning cases under existing law than by rewriting it.
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Epic v Apple · Warren
Steering committee
Judge Gonzalez Rogers was right to clear Apple of monopoly and to let developers steer customers elsewhere, which does more for competition than a monopoly ruling would have.
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The Digital Markets Act · Warren
Europe should demand choice, not designs
Europe’s new rulebook for tech gatekeepers is right to demand choice, but it should stop short of dictating how rival products are built.
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America v Microsoft · Warren
Make Microsoft share Call of Duty
The FTC is right to worry about a console maker hoarding games, but a binding promise to share Call of Duty is a better remedy than a ban on the deal.
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America v Google, again · Warren
Break up Google’s ad exchange
The Justice Department is right that Google should not run both the auction and the biggest bidders in it, and a break-up of the ad exchange is the remedy to press.
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America v Amazon · Warren
Prime suspect
The government’s case against Amazon is strongest where it targets the penalty for cheap prices elsewhere, and weakest where it treats a popular service as a crime.
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Epic v Google · Warren
Open the Play Store to rivals
A jury has found that Google rigged Android’s app market, and the right remedy is more competition for the Play Store, not a court-drawn design for the phone.
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America v Apple · Warren
Target Apple’s tolls, not its phone
The Justice Department’s suit is strongest where Apple’s gatekeeping protects its services profits, and it should resist the temptation to ask a court to design the iPhone.
Youth
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Gitanjali Rao
Gitanjali Rao’s method is the lesson
The interesting thing about TIME’s first Kid of the Year is not her gadgets but the method behind them, which any adult with a budget could copy and few do.
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Young retail traders
Look at the app, not the teenager
The GameStop frenzy is told as a morality play about reckless youth, but young traders are neither a mob nor sages, and regulators should look at the app before the user.
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Alexandr Wang
Scale AI runs on human labour
Scale AI’s founder built a billion-dollar firm on the unglamorous fact that machine intelligence needs human labour, and its next test is whether that remains true.
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Teen spending
Teenage tastes barely change
Piper Sandler’s teen survey shows a generation whose tastes are remarkably stable, and investors who read every wobble in it as a trend should be more sceptical of the headline numbers.
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Finfluencers
Pursue the firms that pay finfluencers
Regulators are right to pursue finfluencers, but the better target is the firm that pays them, because the young investor’s trust is real and will outlast any single prosecution.
The world this week
Facebook’s Libra. Congress should neither strangle Libra nor wave it through, but test whether Facebook will submit to the rules that bind everyone else who handles other people’s money. Read more on Make Libra obey the money rules
Microsoft and OpenAI. Microsoft’s $1bn bet on OpenAI is less a punt on thinking machines than a prepaid order for its own cloud, and that makes it a shrewd one Read more on Microsoft’s OpenAI bet is a cloud order
Transatlantic data. Europe’s court was right that American surveillance law fails its tests, and Washington should change that law rather than patch up a third doomed deal. Read more on America should change its surveillance law
America v Google. The Justice Department’s case against Google is narrower than its critics fear and better aimed than its fans realise, and its target should be the price of the default. Read more on Feeling lucky
Salesforce and Slack. Regulators should wave through Salesforce’s $27.7bn purchase of Slack, which adds a serious rival to Microsoft; the price is a matter for Salesforce’s shareholders. Read more on Let Salesforce buy Slack
Gitanjali Rao. The interesting thing about TIME’s first Kid of the Year is not her gadgets but the method behind them, which any adult with a budget could copy and few do. Read more on Gitanjali Rao’s method is the lesson
America v Facebook. The government has a fair case that Facebook bought a rival it feared, but a break-up is the wrong cure, and its own past clearance of the deals is its weakest point. Read more on Face value
Platform power. Twitter and Facebook were within their rights to cut off Donald Trump, but a power this large needs published rules and an appeal, not a decision made on a Friday evening Read more on Deplatforming needs rules and an appeal
Amazon’s succession. Jeff Bezos has picked the man who built the firm’s profits, and the choice says more about where Amazon earns its money than about who will run it. Read more on Amazon’s succession follows the money
Young retail traders. The GameStop frenzy is told as a morality play about reckless youth, but young traders are neither a mob nor sages, and regulators should look at the app before the user. Read more on Look at the app, not the teenager
Australia v Facebook. Australia was right that platforms hold too much power over news, but pricing links is clumsy, and other countries should copy the leverage, not the mechanism. Read more on Copy Australia’s leverage, not its law
Privacy and power. Apple’s tracking prompt is good for users and better for Apple, so regulators should insist that the firm lives under the same rule it imposes on everyone else Read more on Apple should obey its own privacy rule
Lina Khan at the FTC. Lina Khan is right that antitrust has grown too fond of low prices, but she will do more by winning cases under existing law than by rewriting it. Read more on Lina Khan should enforce the law first
Epic v Apple. Judge Gonzalez Rogers was right to clear Apple of monopoly and to let developers steer customers elsewhere, which does more for competition than a monopoly ruling would have. Read more on Steering committee
The Digital Markets Act. Europe’s new rulebook for tech gatekeepers is right to demand choice, but it should stop short of dictating how rival products are built. Read more on Europe should demand choice, not designs
Broadcom and VMware. Broadcom’s $61bn price for VMware is hard to earn back without raising bills, so regulators should ask whether customers can walk away. Read more on VMware’s customers will pay for Broadcom
Twitter and Elon Musk. Mr Musk has paid full price for a loss-making firm whose customers can leave at will, and no change of ownership will fix that. Read more on No owner can fix Twitter’s business
America v Microsoft. The FTC is right to worry about a console maker hoarding games, but a binding promise to share Call of Duty is a better remedy than a ban on the deal. Read more on Make Microsoft share Call of Duty
America v Google, again. The Justice Department is right that Google should not run both the auction and the biggest bidders in it, and a break-up of the ad exchange is the remedy to press. Read more on Break up Google’s ad exchange
Meta’s year of efficiency. Investors have rewarded Meta for spending less, which is sensible, but efficiency is a means and the firm has yet to say what it is for. Read more on Meta’s efficiency still lacks a purpose
America v Amazon. The government’s case against Amazon is strongest where it targets the penalty for cheap prices elsewhere, and weakest where it treats a popular service as a crime. Read more on Prime suspect
OpenAI’s governance. OpenAI’s board did what it was built to do and lost within five days, which shows that competition and the law, not a charity, must steer the lab. Read more on A charity cannot steer OpenAI
Epic v Google. A jury has found that Google rigged Android’s app market, and the right remedy is more competition for the Play Store, not a court-drawn design for the phone. Read more on Open the Play Store to rivals
Microsoft’s market value. Investors have priced Microsoft as the winner of the AI race, yet the prize still depends on customers paying $30 a month for a chatbot. Read more on Microsoft’s valuation rests on a chatbot
Acqui-hires and merger review. Microsoft’s hiring of Inflection’s leaders and staff should be reviewed as the merger it resembles, because a deal that moves a company’s people but not its shares is still a deal Read more on Review acqui-hires as mergers
America v Apple. The Justice Department’s suit is strongest where Apple’s gatekeeping protects its services profits, and it should resist the temptation to ask a court to design the iPhone. Read more on Target Apple’s tolls, not its phone
Alphabet’s capital return. Alphabet’s first dividend says less about a maturing firm than about a cash pile that outgrew its owner’s ideas for it. Read more on Alphabet’s cash outgrew its ideas
Alexandr Wang. Scale AI’s founder built a billion-dollar firm on the unglamorous fact that machine intelligence needs human labour, and its next test is whether that remains true. Read more on Scale AI runs on human labour
The CrowdStrike outage. The CrowdStrike outage shows that firms with deep access to everyone’s computers should be regulated as infrastructure, with staged updates and liability, not as vendors who can disclaim everything. Read more on Blue screen of debt
Teen spending. Piper Sandler’s teen survey shows a generation whose tastes are remarkably stable, and investors who read every wobble in it as a trend should be more sceptical of the headline numbers. Read more on Teenage tastes barely change
Finfluencers. Regulators are right to pursue finfluencers, but the better target is the firm that pays them, because the young investor’s trust is real and will outlast any single prosecution. Read more on Pursue the firms that pay finfluencers
America v Google. Judge Mehta was right to leave Google its browser and phone software, and America should now make the data-sharing order work rather than appeal for a break-up. Read more on Spare the Chrome