Facebook and Google are doomed, George Soros says
Facebook and Google are doomed, George Soros says
By Hamza Shaban January 26, 2018
Billionaire philanthropist and leading donor to liberal
causes George Soros predicted Thursday that regulation and taxation will soon
dethrone Facebook and Google, describing the tech industry's major players as
powerful monopolies that harm individuals, market innovation and democracy.
In a wide-ranging, scathing speech delivered at a dinner
event at the World Economic Forum in Davos, Switzerland, Soros applauded the
European Union's heightened enforcement aimed at Web giants. He also called for
greater regulation of the tech companies, seizing on a growing backlash against
Silicon Valley.
“Facebook and Google have grown into ever more powerful
monopolies, they have become obstacles to innovation, and they have caused a
variety of problems of which we are only now beginning to become aware,” he
said, according to a transcript of the speech.
Soros made the remarks as officials in Washington and
industry critics continued to ramp up their scrutiny of the tech sector. That
pressure has been directed at a broad array of issues, perhaps most prominently
online advertising and the spread of disinformation on popular social media
platforms. In response, Facebook and Google have said they are open to greater
government oversight in their ad operations. But Facebook has gone even further
in recent weeks, publicly grappling with its role in global society. Last week
Facebook even admitted in a blog post that social media can sometimes harm
democracy.
Soros suggested that American officials draw from their
European counterparts, particularly E.U. Competition Commissioner Margrethe
Vestager, whom he described as the “nemesis” of American tech monopolies.
Vestager, a former Danish economy minister, and other E.U. officials have
recently advanced a host of enforcement actions against prominent U.S. tech
companies. E.U. officials have sued Google over alleged antitrust violations
tied to its search engine, its mobile operating system and its ad platform. In
2016, competition authorities ordered Apple to pay Ireland more than $15
billion in uncollected taxes; and Facebook has been penalized by several
privacy watchdogs for breaking data protection rules.
Soros acknowledged that Europe's approach to antitrust
law and regulation differs from that of the United States. But his criticism of
Facebook and Google may empower Democrats who have already expressed skepticism
toward Silicon Valley and the broader world of tech and telecom.
In October, for instance, congressional Democrats, with
notable support from Republican Sen. John McCain (Ariz.), introduced
legislation that would place greater disclosure requirements on Web platforms
that run political advertisements. The lawmakers behind the bill say the rules
will help prevent Russia and other foreign powers from exploiting social media
and undermining U.S. elections. And last summer, the Democratic Party released
a broad economic agenda, dubbed a “Better Deal," that included stricter
enforcement of antitrust laws and a push against corporate monopolies.
While Soros is often criticized by conservative figures
who oppose his political projects, his attack on the tech giants highlights a
brewing convergence between leaders on the left and the right who have come to
view Silicon Valley as a perverse influence on the country.
“It is only a matter of time before the global dominance
of the U.S. IT monopolies is broken,” Soros said. “Davos is a good place to
announce that their days are numbered.”
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