August 9, 2018
Yesterday, the New York City Council voted to impose a one-year cap on the number of ride-hailing vehicles able to operate in the city. The bills also allowed the city to impose a minimum level of compensation for ride-hailing drivers.
August 7, 2018
Social media outlets have been filled with commentary this week about the decisions by Apple, Facebook, YouTube, and Spotify to remove content created by talk show host and conspiracy theorist Alex Jones. This is a useful opportunity to clarify what actually counts as “censorship” and what responsibilities that media platforms have to the public.
August 1, 2018
Today, the Competitive Enterprise Institute launches its new video about the platform economy. Platforms are an ancient way of doing business—think of matchmakers, city fairs, and town markets—that bring together two or more parties to make economic transactions. Today, digital platforms allow a far wider reach, bringing together people in a way that was unthinkable just a generation ago.
July 18, 2018
Dominance and popularity are not the same as a coercive monopoly. The European Commission is behaving in protectionist fashion, not in a manner benefitting consumers, and the fines are inappropriate, unwarranted, and plain wrong. Google is no monopoly, as the existence of Apple’s iPhone and other options attest. There is always some new disruptive technology on the horizon (remember the MySpace monopoly? The AOL one?).
July 17, 2018
T-Mobile and Sprint—the third and fourth largest mobile carriers in the United States, respectively—are in the process of merging into a single company under the T-Mobile brand. Together, T-Mobile–Sprint would have roughly 127 million subscribers, meaning the merged firm would for the first time rival the nations’ two largest wireless companies, Verizon Wireless and AT&T, which have long led the pack among U.S. carriers.
July 8, 2018
Every time a major corporate merger is announced, pundits predictably warn of impending doom if regulators allow it to happen. Yet, pundits and regulators don’t know any better than you or I how a merger will turn out. And unlike investors and entrepreneurs, they don’t have their own money at stake, so they don’t have any incentive to innovate or react to changing conditions.
May 31, 2018
When an American company wishes to merge with or acquire another company, reaching an agreement that satisfies both firms’ owners and managers is not always enough. For most mergers and acquisitions valued at over roughly $80 million, companies must submit tons of paperwork and pay a sizable fee to the Federal Trade Commission and the Department of Justice before they can finalize any deal. Once these filings are complete, the companies can’t finalize their transaction until a waiting period of up to 30 days has elapsed.
May 9, 2018
The future has arrived, and it is a radically different economy. Havas Media’s Tom Goodwin pointed out in 2015, “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.”
April 9, 2018
Much of the political class in Washington, D.C. is currently holding its breath for the big event of the week: Facebook CEO Mark Zuckerberg’s long-awaited Capitol Hill testimony, starting tomorrow morning before a joint session of the Senate Judiciary and Commerce Committees and continuing the next day before the House Energy and Commerce Committee.
March 26, 2018
Anti-technology hysteria continues to build in the European Union. Margrethe Vestager, the European Commissioner for Competition, confirmed today that she is still considering breaking up Google into smaller companies, ostensibly to protect online competition. This follows the Commission’s proposals for “Fair Taxation of the Digital Economy” that appeared on March 21st, which seek to redefine where profits for digital companies are registered and subject to corporate taxation, as well as introducing a new “interim tax” on revenues to generate more money for the Commission’s coffers.