The Mercatus Center at George Mason University has just released a new paper by Brent Skorup and me entitled, “A History of Cronyism and Capture in the Information Technology Sector.” In this 73-page working paper, which we hope to place in a law review or political science journal shortly, we document the evolution of government-granted privileges, or “cronyism,” in the information and communications technology marketplace and in the media-producing sectors. Specifically, we offer detailed histories of rent-seeking and regulatory capture in: the early history of the telephony and spectrum licensing in the United States; local cable TV franchising; the universal service system; the digital TV transition in the 1990s; and modern video marketplace regulation (i.e., must-carry and retransmission consent rules, among others.
Our paper also shows how cronyism is slowly creeping into new high-technology sectors.We document how Internet companies and other high-tech giants are among the fastest-growing lobbying shops in Washington these days. According to the Center for Responsive Politics, lobbying spending by information technology sectors has almost doubled since the turn of the century, from roughly $200 million in 2000 to $390 million in 2012. The computing and Internet sector has been responsible for most of that growth in recent years. Worse yet, we document how many of these high-tech firms are increasingly seeking and receiving government favors, mostly in the form of targeted tax breaks or incentives. Continue reading →
The Mercatus Center at George Mason University has just released my new white paper, “The Perils of Classifying Social Media Platforms as Public Utilities.” [PDF] I first presented a draft of this paper last November at a Michigan State University conference on “The Governance of Social Media.” [Video of my panel here.]
In this paper, I note that to the extent public utility-style regulation has been debated within the Internet policy arena over the past decade, the focus has been almost entirely on the physical layer of the Internet. The question has been whether Internet service providers should be considered “essential facilities” or “natural monopolies” and regulated as public utilities. The debate over “net neutrality” regulation has been animated by such concerns.
While that debate still rages, the rhetoric of public utilities and essential facilities is increasingly creeping into policy discussions about other layers of the Internet, such as the search layer. More recently, there have been rumblings within academic and public policy circles regarding whether social media platforms, especially social networking sites, might also possess public utility characteristics. Presumably, such a classification would entail greater regulation of those sites’ structures and business practices.
Proponents of treating social media platforms as public utilities offer a variety of justifications for regulation. Amorphous “fairness” concerns animate many of these calls, but privacy and reputational concerns are also frequently mentioned as rationales for regulation. Proponents of regulation also sometimes invoke “social utility” or “social commons” arguments in defense of increased government oversight, even though these notions lack clear definition.
Social media platforms do not resemble traditional public utilities, however, and there are good reasons why policymakers should avoid a rush to regulate them as such. Continue reading →
When people ask me why I do what I do for a living — and, more specifically, why I focus all my attention on digital media and technology policy — I often respond by showing them the new gadgets or software I am playing with at any given time. I just love digital technology. I am swimming in a sea of digital gadgets, consumer electronics, online applications, computing software, video games, and all sorts of cyber-stuff.
Anyway, even though this is a technology
policy blog, I sometimes highlight new digital toys or applications that have changed my life for the better. As the year winds down, therefore, I thought I would share with you five technologies that improved my life and productivity in 2008. I’d also love to hear from all of you about the technologies that you fell in love with this year in case I might have missed them. Here’s my list:
#1) Naturally Speaking 10:
Thanks to Nate Anderson’s outstanding review over at Ars Technica, I finally made the plunge and bought Dragon Naturally Speaking 10 earlier this month. Wow, what a life-changer. I had played around with an earlier version of this market-leading speech recognition technology and found it somewhat clunky and unreliable. But Ver. 10, has ironed out almost all the old problems and become an incredibly sophisticated piece of software in the process. I love the way I can use simple voice commands to navigate menus in Microsoft Word and in Firefox. Perhaps best of all, I can dictate random rants into a pocket recording device and then upload them to Naturally Speaking (via a USB connection) and have them instantly transcribed. I’m even composing blog entries like this using it! Only problem is inserting HTML code; that’s still a hassle. Also, I find that switching from one input device to another definitely affects the quality of the transcription. Once you “train” Naturally Speaking using one device, it makes sense to stick with it. It’s not just the quality of the microphone; it’s also the proximity to your mouth that makes a difference. Regardless, this is one great product and, best of all, it’s should help save my rapidly-aging hands from becoming prematurely arthritic! All those years of video games and keyboards have taken their toll.
Continue reading →