I reviewed Tim Wu's great history of media consolidation and regulatory capture The Master Switch earlier this month; now Tim says, "This piece I wrote for the Wall Street Journal is an important one. It is like a last chapter for my book."
We wouldn't fret over monopoly so much if it came with a term limit. If Facebook's rule over social networking were somehow restricted to, say, 10 years--or better, ended the moment the firm lost its technical superiority--the very idea of monopoly might seem almost wholesome. The problem is that dominant firms are like congressional incumbents and African dictators: They rarely give up even when they are clearly past their prime. Facing decline, they do everything possible to stay in power. And that's when the rest of us suffer.
AT&T's near-absolute dominion over the telephone lasted from about 1914 until the 1984 breakup, all the while delaying the advent of lower prices and innovative technologies that new entrants would eventually bring. The Hollywood studios took effective control of American film in the 1930s, and even now, weakened versions of them remain in charge. Information monopolies can have very long half-lives.
Declining information monopolists often find a lifeline of last resort in the form of Uncle Sam. The government has conferred its blessing on monopolies in information industries with unusual frequency. Sometimes this protection has yielded reciprocal benefits, with the owner of an information network offering the state something valuable in return, like warrantless wiretaps.
Philips has acquired Luciom, a French startup that makes Li-Fi products, which allow for very fast network connections over short distances by flickering an LED at speeds that are too fast to register on the human eye, and which can ever work in the dark by operating at low dimness settings the human eye perceives […]
Many insurers offer breaks to people who wear activity trackers that gather data on them; as Cathy “Mathbabe” O’Neil points out, the allegedly “anonymized’ data-collection is trivial to re-identify (so this data might be used against you), and, more broadly, the real business model for this data isn’t improving your health outcomes — it’s dividing […]
As the US government ramps up its insistence that visitors (and US citizens) unlock their devices and provide their social media accounts, the solution have run the gamut from extreme technological caution, abandoning mobile devices while traveling, or asking the government to rethink its policy. But Maciej Cegłowski has another solution: a “travel mode” for […]
DJI is the world’s leading designer and producer of easy-to-fly drones and aerial photography systems. If you’re a drone enthusiast, you want a DJI. If you know absolutely nothing about drones and think they’re weird, if you win a DJI you’re going to become a drone enthusiast.Enter this giveaway (for free, yes) and you’ll get a […]
Although there will never be a consensus about the best way to make coffee, any coffee connoisseur will agree that controlling the grind of your beans and balancing water temperature are the keys to a tasty cup. Since your plastic coffee pot doesn’t really allow for that kind of customization, going back to the French […]
Not all hackers are malicious information thieves—white-hat ethical hackers work with technology companies to ensure the security of their computer systems and user data. With all of today’s high-profile data breaches, ethical hackers are in considerable demand. To learn these critical skills and break into the high-paying cyber security field, try taking the courses in this […]