The tech versus the regulators, part 231527

This week the US Congress interviewed the CEOs of four of the most powerful tech companies on the planet  - Apple, Google, Facebook and Amazon - for the purpose of establishing grounds for monopolistic behaviour.

I followed a bit the live discussions, and, as always in such situations, it is striking the huge information and knowledge asymmetry between the tech regulators and the tech creators. The congress people seemed very unprepared for the job they were supposed to do, made a lot of silly claims and irelevant points, proving once again that the gap is so big between the two worlds that the politics is out of control.

Here’s what I wrote just 8 weeks ago:

The tech ecosystem has developed tremendously in the past 15 years, in spite of the shitty politics from across both ponds.

That is the very reason for which governments want to regulate Google and Facebook. The gap is so big between the two worlds that the politics is out of control.

More regulation and protectionism will not narrow it [the tech gap] down, au contraire, it will force tech to be more creative, they invent things for a living after all. And yes, US is a very different beast than Europe but smart people adapt.

In conjunction with the hearings, a lot of internal emails were made public, which make for an interesting economic history learning - worth digging through, you can find them here

Also notable Zuck’s statement claiming that Facebook is a laggard:

In many areas, we are behind our competitors.

The most popular messaging service in the U.S. is iMessage. The fastest growing app is TikTok. The most popular app for video is YouTube. The fastest growing ads platform is Amazon. The largest ads platform is Google. And for every dollar spent on advertising in the U.S., less than ten cents is spent with us.

Zuck’s PR taught him to play humble and assertive - but really, does anybody believe anything he says in public at this point? Btw, Facebook’s ad business outpaced Google’s in Q2 — here’s why.

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