Are Big Tech Companies Under Siege From Regulators?

Aditi Pangotra

Research Analyst, Policy & Advocacy, CyberPeace

PUBLISHED ON

Aug 24, 2024

Introduction

Monopolies in any sector can have a great impact on economic efficiency and, by extension, on the market and the larger economy. Data monopolies hurt both small startups and large, established companies, and it is typically the biggest corporate players who have the biggest data advantage. Google has recently lost a major antitrust case filed by the U.S. Department of Justice, which focused on the company's search engine dominance and expensive partnerships to promote its products. The lawsuit accused Google of using its dominant position in the search engine market to maintain a monopoly. The case has had a significant impact on consumers and the tech industry as a whole. This dominance allowed Google to raise prices on advertisers without consequences, and delay innovations and privacy features that consumers want when they search online.

Antitrust Allegations Against Google in the US and EU

In the case filed by the US Department of Justice, US District Judge Amit Mehta ruled that Google was monopolistic. In the 10-week-long trial, Google lost the major antitrust lawsuit, and it was established that the tech giant had a monopoly in the web search and advertising sectors. The lawsuit accused Google of using its dominant position in the search engine market to elbow out rivals and maintain a monopoly. The tech giant’s exclusive deals with handset makers were brought before the court as evidence. Additionally, the European Commission has fined Google €1.49 billion for breaching EU antitrust rules in 2019.

The Impact of Big Tech Monopolies on the Digital Ecosystem and Beyond

Big-tech companies collect vast amounts of personal data, raising concerns about how this data is used and protected. The concentration of data in the hands of a few companies can lead to privacy breaches and misuse of personal information.
The dominance of a few tech giants in digital advertising markets can stifle competition, leading to higher prices for advertisers and fewer choices for consumers. This concentration also allows these companies to exert major control over what ads are shown and to whom.
Big-tech platforms have substantial power over the dissemination of information. Their algorithms and policies on content moderation can influence public discourse and may spread misinformation. The lack of competition means fewer alternatives are accessible for users seeking different content moderation policies. In 2021 Google paid $26.3 billion to ensure its search engine is the default on smartphones and browsers and to keep control of its dominant market share.

Regulatory Mechanisms in the Indian Context

In India, antitrust issues are governed by the Competition Act of 2002 and the Competition Commission of India (CCI) checks monopolistic practices. In 2022, the CCI imposed a penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets for 'anti-competitive practices' in the Android mobile device ecosystem. The Draft Digital Competition Bill, 2024, has been proposed as a legislative reform to regulate a wide range of digital services, including online search engines, social networking platforms, video-sharing sites, interpersonal communication services, operating systems, web browsers, cloud services, advertising services, and online intermediation services. The bill aims to promote competition and fairness in the digital market by addressing anti-competitive practices and dominant position abuses in the digital business space.

Conclusion

Big-tech companies are increasingly under scrutiny from regulators due to concerns over their monopolistic practices, data privacy issues, and the immense influence on markets and public discourse. The U.S. Department of Justice's victory against Google and the European Commission's hefty fines are indicators of a global paradigm shift towards more aggressive regulation to foster competition and protect consumer interests. The combined efforts of regulators across different jurisdictions underscore the recognition that monopolistic practices by such big tech giants can stifle innovation, harm consumers’ interests, and create barriers for new entrants, thus necessitating strong legal frameworks to ensure fair and contestable markets. Overall, the increasing regulatory pressure signifies a pivotal moment for big-tech companies, as they face the challenge of adapting to a more tightly controlled environment where their market dominance and business practices are under intense examination.

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PUBLISHED ON

Aug 24, 2024

Related Blogs

Meta’s Proposed AI Age Classifier to Restrict Adult Content Access to Teen Users

November 15, 2024

Introduction

A Pew Research Center survey conducted in September 2023, found that among 1,453 age group of 13-17 year olds projected that the majority of the age group uses TikTok (63%), Snapchat (60%) and Instagram (59%) in the U.S. Further, in India the 13-19 year-olds age group makes up 31% of social media users in India, according to a report by Statista from 2021. This has been the leading cause of young users inadvertently or deliberately accessing adult content on social media platforms.

Brief Analysis of Meta’s Proposed AI Age Classifier

It can be seen as a step towards safer and moderated content for teen users, by placing age restrictions on teen social media users as sometimes they do not have enough cognitive skills to understand what content can be shared and consumed on these platforms and what can not as per their age. Moreover, there needs to be an understanding of platform policies and they need to understand that nothing can be completely erased from the internet.

Unrestricted access to social media exposes teens to potentially harmful or inappropriate online content, raising concerns about their safety and mental well-being. Meta's recent measures aim to address this, however striking a balance between engagement, protection, and privacy is also an essential part.

The AI-based Age Classifier proposed by Meta classifies users based on their age and places them in the ‘Teen Account’ category which has built-in limits on who can contact them, the content they see and more ways to connect and explore their interests. According to Meta, teens under 16 years of age will need parental permission to change these settings.

Meta's Proposed Solution: AI-Powered Age Classifier

This tool uses Artificial Intelligence (AI) to analyze users’ online behaviours and other profile information to estimate their age. It analyses different factors such as who follows the user, what kind of content they interact with, and even comments like birthday posts from friends. If the classifier detects that a user is likely under 18 years old, it will automatically switch them to a “Teen Account.” These accounts have more restricted privacy settings, such as limiting who can message the user and filtering the type of content they can see.

The adult classifier is anticipated to be deployed by next year and will start scanning for such users who may have lied about their age. All users found to be under 18 years old will be placed in the category of teen accounts, but 16-17 year olds will be able to adjust these settings if they want more flexibility, while younger teens will need parental permission. The effort is part of a broader strategy to protect teens from potentially harmful content on social media. This is especially important in today’s time as the invasion of privacy for anyone, particularly, can be penalised due to legal instruments like GDPR, DPDP Act, COPPA and many more.

Policy Implications and Compliances

Meta's AI Age Classifier addresses the growing concerns over teen safety on social media by categorizing users based on age, restricting minors' access to adult content, and enforcing parental controls. However, reliance on behavioural tracking might potentially impact the online privacy of teen users. Hence the approach of Meta needs to be aligned with applicable jurisdictional laws. In India, the recently enacted DPDP Act, of 2023 prohibits behavioural tracking and targeted advertising to children. Accuracy and privacy are the two main concerns that Meta should anticipate when they roll out the classifier.

Meta emphasises transparency to build user trust, and customizable parental controls empower families to manage teens' online experiences. This initiative reflects Meta's commitment to creating a safer, regulated digital space for young users worldwide, it must also align its policies properly with the regional policy and law standards. Meta’s proposed AI Age Classifier aims to protect teens from adult content, reassure parents by allowing them to curate acceptable content, and enhance platform integrity by ensuring a safer environment for teen users on Instagram.

Conclusion

Meta’s AI Age Classifier while promising to enhance teen safety and putting certain restrictions and parental controls on accounts categorised as ‘teen accounts’, must also properly align with global regulations like GDPR, and the DPDP Act with reference to India. This tool offers reassurance to parents and aims to foster a safer social media environment for teens. To support accurate age estimation and transparency, policy should focus on refining AI methods to minimise errors and ensure clear disclosures about data handling. Collaborative international standards are essential as privacy laws evolve. Meta’s initiative is intended to prioritise youth protection and build public trust in AI-driven moderation across social platforms, while it must also balance the online privacy of users while utilising these advanced tech measures on the platforms.

References

Indian Elections 2024: Google Advocates for Reliable Information

March 14, 2024

Introduction

Google is committed to supporting the upcoming elections in India by providing high-quality information to voters, safeguarding platforms from abuse, and helping people navigate AI-generated content. Google will connect voters to helpful information through enhanced features, collaborating with the Election Commission of India (ECI) to provide voting information in both English and Hindi. Emphasis is also placed on showcasing authoritative information on YouTube. YouTube will highlight authoritative news sources and offer context on topics prone to misinformation. YouTube also appends information panels directing viewers to the Election Commission of India's FAQs. This support will help millions of eligible voters navigate the electoral process and ensure a fair and transparent election process.

Key Highlights of Google’s Approach

The step taken by Google will support the democratic process during the upcoming General Election in India. The initiative focuses on three main pillars: disseminating information, tackling misinformation, and navigating AI-generated content. Google is enhancing its Search and YouTube features to provide essential election-related information, including voter registration, polling guidelines, and candidate profiles. Google is also addressing the challenges posed by AI-generated content by offering clarity on content origins, particularly for election-related ads and YouTube videos. Google has strict policies and restrictions regarding who can run election-related advertising on its platforms, including identity verification, pre-certificates, and in-ad disclosures. Additionally, Google is utilising tools and policies like Ads disclosures, content labels on YouTube, and digital watermarking to help users to identify AI-generated content.

Google has joined hands with ECI

The tech giant Google is partnering with the Election Commission of India (ECI) to provide voting information on Google Search in both English and Hindi. YouTube will feature election information panels, including candidate profiles and registration guidelines, ensuring users have access to authoritative sources. Google's recommendation system will display content from trusted publishers on election-related topics. Protecting the integrity of elections is a top priority, and the company is employing advanced AI models and machine learning techniques to identify and remove content that violates its policies at scale. A dedicated team of local experts across major Indian languages is assigned to provide relevant context and ensure swift action against emerging threats. Google is also tightening up who can advertise on its platforms, requiring advertisers to undergo an identity verification process and obtain a pre-certificate from the ECI or authorised entities for each election ad they wish to run.

Tackling Electoral Misinformation

Google is enhancing its platform security measures to prevent misinformation. It is using AI models and human expertise to identify and address policy violations, while stringent verification processes and disclosures are being implemented to maintain user trust.

Collaborations to promote reliable information

Google is supporting the Shakti, India Election Fact-Checking Collective, a consortium of news publishers and fact checkers to detect online misinformation, including deepfakes. The project will provide news entities and fact checkers with essential training in fact-checking methodologies, deepfake detection, and the latest Google tools to streamline verification processes, as stated in Google’s blog post.

Conclusion

Google has taken proactive steps to ensure a secure electoral process during the upcoming general elections in India. These include preventing the misuse of false information by helping voters navigate AI-generated content and safeguarding its platforms from abuse. Google India has built faster and more adaptable enforcement systems with recent advances in its Large Language Models (LLMs), enabling the company to remain nimble and take action quickly when new threats emerge. Google is dedicated to collaborating with government, industry, and civil society to provide voters with reliable and trustworthy online information. Google is implementing a comprehensive strategy to empower voters, safeguard its platforms, and combat misinformation in India's upcoming general elections. Google’s step is commendable and aims to ensure a secure electoral process, empowering millions of citizens to exercise their democratic rights.

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TRAIs crackdown on pesky calls and messages

It stated that only approved online or app links, call-back numbers, and so on will be permitted to be used in consent-seeking communications.

June 17, 2023

Introduction

To combat the problem of annoying calls and SMS, telecom regulator TRAI has urged service providers to create a uniform digital platform in two months that will allow them to request, maintain, and withdraw customers’ approval for promotional calls and messages. In the initial stage, only subscribers will be able to initiate the process of registering their consent to receive promotional calls and SMS, and later, business entities will be able to contact customers to seek their consent to receive promotional messages, according to a statement issued by the Telecom Regulatory Authority of India (TRAI) on Saturday.

TRAI Directs Telecom Providers to Set Up Digital Platform

TRAI has now directed all access providers to develop and deploy the Digital Consent Acquisition (DCA) facility for creating a unified platform and process to digitally register customers’ consent across all service providers and principal entities. Consent is received and maintained under the current system by several key entities such as banks, other financial institutions, insurance firms, trading companies, business entities, real estate businesses, and so on.

The purpose, scope of consent, and the principal entity or brand name shall be clearly mentioned in the consent-seeking message sent over the short code,” according to the statement.

It stated that only approved online or app links, call-back numbers, and so on will be permitted to be used in consent-seeking communications.

TRAI issued guidelines to guarantee that all voice-based Telemarketers are brought under a single Distributed ledger technology (DLT) platform for more efficient monitoring of nuisance calls and unwanted communications. It also instructs operators to actively deploy AI/ML-based anti-phishing systems as well as to integrate tech solutions on the DLT platform to deal with malicious calls and texts.

TRAI has issued two separate Directions to Access Service Providers under TCCCPR-2018 (Telecom Commercial Communications Customer Preference Regulations) to ensure that all promotional messages are sent through Registered Telemarketers (RTMs) using approved Headers and Message Templates on Distributed Ledger Technologies (DLT) platform, and to stop misuse of Headers and Message Templates,” the regulator said in a statement.

Users can already block telemarketing calls and texts by texting 1909 from their registered mobile number. By dialing 1909, customers can opt out of getting advertising calls by activating the do not disturb (DND) feature.

Telecom providers operate DLT platforms, and businesses involved in sending bulk promotional or transactional SMS must register by providing their company information, including sender IDs and SMS templates.

According to the instructions, telecom companies will send consent-seeking messages using the common short code 127. The goal, extent of consent, and primary entity/brand name must be clearly stated in the consent-seeking message delivered via the shortcode.

TRAI stated that only whitelisted URLs/APKs (Android package kits file format)/OTT links/call back numbers, etc., shall be used in consent-seeking messages.

Telcos must “ensure that promotional messages are not transmitted by unregistered telemarketers or telemarketers using telephone numbers (10 digits numbers).” Telecom providers have been urged to act against all erring telemarketers in accordance with the applicable regulations and legal requirements.

Users can, however, refuse to receive any consent-seeking messages launched by any significant Telcos have been urged to create an SMS/IVR (interactive voice response)/online service for this purpose.

According to TRAI’s timeline, the consent-taking process by primary companies will begin on September 1.According to a nationwide survey conducted by a local circle, 66% of mobile users continue to receive three or more bothersome calls per day, the majority of which originate from personal cell numbers.

There are scams surfacing on the internet with new types of scams, like WhatsApp international call scams. The latest scam is targeting Delhi police, the scammers pretend to be police officials of Delhi and ask for the personal details of the users and the calling them from a 9-digit number.

A recent scam

A Twitter user reported receiving an automated call from +91 96681 9555, stating, “This call is from Delhi Police.” It went on to ask her to stay in the queue since some of her documents needed to be picked up. Then he said he is a sub-inspector at New Delhi’s Kirti Nagar police station. He then questioned if she had lately misplaced her Aadhaar card, PAN card, or ATM card, to which she replied ‘no’. The fraudster then claims to be a cop and asks her to validate the final four digits of her card because they have discovered a card with her name on it. And so many other people tweeted about this.

The scams are constantly increasing as earlier these scammers asked for account details and claimed to be Delhi police and used 9-digit numbers for scamming people.

TRAI’s new guidelines regarding the consent to receive any promotional calls and messages to telecommunication providers will be able to curb the scams.

The e- KYC is an essential requirement as e-KYC offers a more secure identity verification process in an increasingly digital age that uses biometric technologies to provide quick results.

Conclusion

The aim is to prevent unwanted calls and communications sent to customers via digital methods without their permission. Once this platform is implemented, an organization can only send promotional calls or messages with the customer’s explicit approval. Companies use a variety of methods to notify clients about their products, including phone calls, text messages, emails, and social media. Customers, however, are constantly assaulted with the same calls and messages as a result of this practice. With the constant increase in scams, the new guideline of TRAI will also curb the calling of Scams. digital KYC prevents SIM fraud and offers a more secure identity verification method.

Are Big Tech Companies Under Siege From Regulators?

Introduction

Antitrust Allegations Against Google in the US and EU

The Impact of Big Tech Monopolies on the Digital Ecosystem and Beyond

Regulatory Mechanisms in the Indian Context

Conclusion

References

Related Blogs

Introduction

Brief Analysis of Meta’s Proposed AI Age Classifier

Meta's Proposed Solution: AI-Powered Age Classifier

Policy Implications and Compliances

Conclusion

References

Introduction

Key Highlights of Google’s Approach

Google has joined hands with ECI

Tackling Electoral Misinformation

Collaborations to promote reliable information

Conclusion

References:

Introduction

TRAI Directs Telecom Providers to Set Up Digital Platform

A recent scam

Conclusion

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