After the worldwide outbreak of the novel coronavirus in 2020, companies such as Apple, Microsoft, Alphabet, and Meta have become staples of modern society, easing the transition to daily digital functioning. However, for years, Big Tech has faced backlash from global legislatures regarding copyright, data collection, and human rights.
Now, after the revelations of Frances Haugen, Facebook whistleblower, regarding Meta platform’s algorithms targeted at advertising at vulnerable children and profiting from disinformation and hateful content, a turning point has been reached in taking legislative action through regulation.
As a result, the Federal Trade Commission is pushing forward antitrust lawsuits against Facebook, and specifically in the U.S., a package of antitrust bills emphasized on technology companies are underway. Proposals to update competition law, establish online privacy rights, and protect kids from harm on the internet have broad bipartisan support. Although, lawmakers have expressed some concerns regarding the bills, the bills themselves were created based on a 16-month investigation into competitive practices used by Amazon, Apple, Facebook, and Google. The investigation found that each company has monopoly power, and recommended legislative changes to promote more competition in the digital market.
Globally, new laws under consideration in Europe, Asia, and the U.S. could place restrictions on how technology companies can treat their competitors, restrict AI usage, and decrease data flow. As a result, these limits could operationally impact big tech, prevent digital advertising, delay major product changes, or force ongoing oversight of activities.
In the past, regulation has had minor impacts on Silicon Valley’s valuations. In 2022, this could change. The wave of scrutiny led by media exposure on Facebook’s whistleblower have made it more difficult for companies to fight back. Facebook announced that it would shut down its facial recognition system in November 2021, and has agreed to sell its animated-images acquisition, Giphy. Alphabet’s Google has agreed to work closely with the Competition and Markets Authority to remove cookies from the Chrome browser, and executives are looking to build new appeals processes for content removals on Youtube.
While Big Tech companies say that they need new regulations, there is still some pushback against proposals around specific areas of interest. For example, requirements in proposed online-content rules could encourage companies to remove content they merely disagree with, threatening the core values behind free speech.
It is thanks to the infamous 1996 Communications Decency Act Section 230 that platforms have, as of yet, been able to self-police and allow users to freely speak online without repercussions. And while social media giants have been exercising their right to regulate more frequently during events following the COVID-19 outbreak, changes in CDA 230 are anticipated in the coming years, leading to more tension between governments and Big Tech.
This blog post is part of the CIMA Law Group Blog. If you are in need of legal help, the CIMA Law Group is a law firm in Phoenix, Arizona which possesses expertise in Immigration Law, Criminal Defense, Personal Injury, and Government Relations.
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