Could Congresss antitrust campaign against Big Tech derail Americas strategic competition with China? A bipartisan collection of senior national security leaders including a former Secretary of Defense, former Director of National Intelligence, former CIA executives, and a former White House Homeland Security adviser think so, and we would do well to listen.
In a letter written to Congress last month, this diverse group of notables warned that more deliberate analysis is needed to examine the detrimental impact that a slew of proposed antitrust laws targeting Big Tech could have on American power.
Their misgivings are well-founded: One of these proposals, for example, would amend legislation on anti-competitive monopolies such that any company with a market cap of more than $100 billion would be prevented from making any merger or acquisition.
Though this particular proposal thankfully has not gained much traction, it is representative of the kinds of poorly considered, far-reaching bills that should have us all concerned. For their proponents, the term Big Tech is often invoked as an accusation, implying that the scale of these companies alone means they need to be broken up. This approach breaks with American precedent, bucks antitrust law, and endangers American security.
The reality is that the technologies that are essential for securing the people and interests of the United States are overwhelmingly being developed in the private sector, which now accounts for about 75 percent of total U.S. research and development spending. Hamstringing these industries will make the nation less safe as the effects of years of insufficient national security funding, training and planning catch up with us and embolden authoritarian regimes in Beijing, Moscow and elsewhere.
Reversing these trends requires ongoing innovation in areas such as artificial intelligence (AI), quantum computing and robotics. But advancing these technologies is resource-intensive and decisively enabled by companies who are able to operate at scale.
Last year, Alphabet, Amazon, Apple, Facebook, Intel and Microsoft alone spent a combined $140 billion on research and development (R&D), not including acquisitions. The Pentagons R&D budget for the same year was $109 billion.
Why were six U.S. companies able to outspend and out-innovate the U.S. government? Because they are profitable. And they are profitable because they are big.
Pushing the frontiers of science and pioneering game-changing technologies is expensive. The resources and talent to do these things are highly valuable and desperately scarce. It is no coincidence, then, that the companies that have found ways to attract billions of customers and the profits that come with them are the ones at the center of these innovations.
Instead of railing against these companies because of their size, we instead should be thankful that our free-market economy has produced an alignment of interests where private-sector actors can generate wealth and jobs while also developing capabilities that will provide for the common defense. This uniquely American advantage may well be decisive in an era of escalating geopolitical competition. It would be reckless to give it away.
That is not to say that these companies should be legally immune simply for being important to national security. If a serious investigation demonstrates that any of these companies have violated antitrust, or any other law, by all means they should be held accountable.
Nor is it to deny other consequential issues related to these companies that still need to be addressed, such as their disproportionate power to bend public discourse, or their previous reticence to collaborate with the U.S. government (though all of the companies mentioned here are now actively pursuing U.S. defense contracts).
Their disturbing support of the Peoples Republic of China is particularly ripe for remediation: Microsofts Beijing-based Research Asia Lab is the companys largest outside of the U.S. and is heralded as the single most important institution in the birth and growth of the Chinese AI ecosystem over the past two decades. Likewise, Apples near-total capitulation to Chinas surveillance and data access demands justifiably invites public skepticism and congressional scrutiny.
These potent criticisms, however, do not justify blowing up an industry that constitutes 10.5 percent of our national GDP particularly when its innovations are at the heart of our current and future national security requirements.
The truth is that big is not bad. In fact, when it comes to tech, it may be a critical advantage.
Klon Kitchen is a senior fellow at the American Enterprise Institute, a former national security adviser to Sen. Ben SasseBen SasseBiden slips further back to failed China policies The Memo: Generals' testimony on Afghanistan hurts Biden's credibility No. 2 Senate Democrat: Raising debt limit under reconciliation a 'non-starter' MORE (R-Neb.), and a 15-year veteran of the United States Intelligence Community. Read his weekly technology and national security newsletter at thekitchensync.tech and follow him on Twitter @klonkitchen.
Read the original here:
Invoking 'Big Tech' as an accusation can endanger American security | TheHill - The Hill
- We're losing the war against surveillance capitalism because we let Big Tech frame the debate - Salon [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Barr: Changes To Big Tech Protections Are Meant To Protect Free Speech - The Federalist [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Antifa, Big Tech and abortion: Republicans bring culture war to police brutality debate - POLITICO [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Big Tech Wont Be the Same If Everyone Works From Home - Yahoo Finance [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Big Tech will annihilate Telcos (a weekend read!) | Gadget Guy Australia - GadgetGuy [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Tesla Is Overvalued: Investors Are Treating It Too Much Like A Tech Company, Says Morgan Stanley - Forbes [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Apple's app store is suddenly a flashpoint in the Big Tech debate - NBC News [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Fox News Host Tucker Carlson Blasts Alleged Big Tech Censorship: By Offensive, They Mean The Left Doesnt Like It - Deadline [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- The unholy alliance of big government and Big Tech - Washington Examiner [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Ben Domenech: Small Groups Have Power To Weaponize Big Tech Against People They Don't Like - The Federalist [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Big Tech Is Using the Pandemic to Push Dangerous New Forms of Surveillance - Truthout [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Big Tech Zeros In on the Virus-Testing Market - The New York Times [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- What the 1930s can teach us about dealing with Big Tech today - MIT Technology Review [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Foreign Interference Persists And Techniques Are Evolving, Big Tech Tells Hill - NPR [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Big Tech's Opposition to Section 101 Reform: Policy Rhetoric versus Economic Reality - IPWatchdog.com [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Former Facebook exec thinks big tech will get broken up over the next 10 years - TechCrunch [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Here's what happened to the stock market on Tuesday - CNBC [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- The Tech Billionaire Marshaling the Fight Against Big Tech - The Information [Last Updated On: June 24th, 2020] [Originally Added On: June 24th, 2020]
- Biased Big Tech algorithms limit our lives and choices. Stop the online discrimination. - USA TODAY [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Big Tech Earnings This Week: Facebook, Amazon, and Alphabet - Motley Fool [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Big Tech antitrust hearing could be colossal or mere theater - Roll Call [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- 'Advertising,' 'Data' And 'Targeting' Loom Large During Big Tech Hearings 07/30/2020 - MediaPost Communications [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Stop with the egg metaphor in discussing Big Tech break-ups | TheHill - The Hill [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Sen. Hawley introduces bill to remove Big Tech's Section 230 ad immunity - Fox Business [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- All Eyes on Big Tech Earnings: Here's What to Expect - Yahoo Finance [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- We like and value Big Tech, so why are we so determined to do it down? - Telegraph.co.uk [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- What to watch today: Dow to open higher ahead of Big Tech hearing and Fed policy decision - CNBC [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Big tech companies continue to expand in Seattle - KING5.com [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- When it comes to big tech, US government official incompetence is embarrassing and horrifying - AppleInsider [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Are the Big Tech companies breaking antitrust rules? Their CEOs testify before Congress. - Marketplace [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Lawmakers argue that big tech stands to benefit from the pandemic and must be regulated - TechCrunch [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Lawmakers keen to break up 'big tech' like Amazon and Google need to realize the world has changed a lot since Microsoft and Standard Oil - The... [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Busting Up Big Tech is Popular, But Here's what the US May Lose - Defense One [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Antitrust Showdown In Congress: Big Tech, Meet Big Government - Forbes [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Law Decoded: Big Tech, Central Banks and the Hunt for Monopolies, July 24-31 - Cointelegraph [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- For Big Tech, There's No Winning This Round - WIRED [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- As Tech Giants Face Congress, Heres What Americans Actually Think Of Big Tech - Forbes [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Is This the Beginning of the End of Big Tech As We Know It? - New York Magazine [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Big Tech and antitrust: Pay attention to the math behind the curtain - Brookings Institution [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Big Techs Backlash Is Just Starting - The New York Times [Last Updated On: July 31st, 2020] [Originally Added On: July 31st, 2020]
- Factbox: Where do Trump and Biden stand on tech policy issues? - Yahoo Finance [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- Larry Berman: Should you buy the dip in big tech names? - BNN [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- The trailer for big tech documentary The Social Dilemma hooked viewers this week - YouGov US [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- Big Banking Tech Rules that Solidify Trust in Transparency - AiThority [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- As Big Tech reinvented the game, we must rewrite the rules - London Business School Review [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- IAB Tech Lab's Project Rearc Chugs Along On Open Standards, But The Browser Makers Are Wildcards - AdExchanger [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- IPOs have gone red hot in 2020: Here are 7 big names to watch - Bankrate.com [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- When Tech Giants Want to Play Banker - The Regulatory Review [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- Big Tech wants a bigger pie in India, but it just can't seem to bypass Mukesh Ambani - Economic Times [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- The six biggest tech stocks have lost more than $1 trillion in value in three days - CNBC [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- Why big tech stocks can weather the storm - Financial Times [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- Feds can't scapegoat Google and Big Tech as anti-trust targets forever - New York Post [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- A top Washington analyst weighs the risks of antitrust actions against Big Tech - CNBC [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- Big Tech is turning on one another amid antitrust probes and litigation - MarketWatch [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- Big Tech Still Loves The Oil Business - OilPrice.com [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- Interview: Barry Lynn on the Fight Against Monopolies and Big Tech - RAIN Magazine [Last Updated On: September 15th, 2020] [Originally Added On: September 15th, 2020]
- Over 60% of Insurtech Firms are Now Interested in Working with BigTech Companies: Report - Crowdfund Insider [Last Updated On: September 18th, 2020] [Originally Added On: September 18th, 2020]
- Wray Touts Disinformation Strategy With Big Tech: Often-And-Early : Live Updates: House Hearing On Homeland Threats - NPR [Last Updated On: September 18th, 2020] [Originally Added On: September 18th, 2020]
- Australias News Media and Digital Platforms Bargaining Code is Great Politics But Questionable Economics - ProMarket [Last Updated On: September 21st, 2020] [Originally Added On: September 21st, 2020]
- SUCCESS INSIDER: What people in the C-suites of Apple, Facebook, Disney, and 90 other big tech and media compa - Business Insider India [Last Updated On: September 21st, 2020] [Originally Added On: September 21st, 2020]
- Pandemic prompts more insurers to collaborate with Big Tech - International - Insurance News [Last Updated On: September 21st, 2020] [Originally Added On: September 21st, 2020]
- Goldman Sachs Partner Has a Warning on Big Tech Stocks - ThinkAdvisor [Last Updated On: September 21st, 2020] [Originally Added On: September 21st, 2020]
- Longhorns coach Tom Herman on the Big 12 opener against Texas Tech - KXAN.com [Last Updated On: September 21st, 2020] [Originally Added On: September 21st, 2020]
- Stock sell-off accelerates and is expected to get worse before it gets better - CNBC [Last Updated On: September 21st, 2020] [Originally Added On: September 21st, 2020]
- How The Turmoil With TikTok Could Change The Course Of Big Tech - BusinessBecause [Last Updated On: September 21st, 2020] [Originally Added On: September 21st, 2020]
- Gen Z Says They're Eager to Use a Big Tech for Banking But Will They? - The Financial Brand [Last Updated On: September 21st, 2020] [Originally Added On: September 21st, 2020]
- BARCLAYS: Tech stocks priced at dot-com bubble levels are at serious risk of bursting. Here's why the next meltdown will be far less severe than in... [Last Updated On: September 21st, 2020] [Originally Added On: September 21st, 2020]
- Big Comeback For Apple, Netflix, And Other Big Tech Names Softens Some Of The Pain - Benzinga [Last Updated On: September 21st, 2020] [Originally Added On: September 21st, 2020]
- Conservative group launches website to battle big tech companies over online censorship - Fox News [Last Updated On: September 21st, 2020] [Originally Added On: September 21st, 2020]
- Section 230 will be on the chopping block at the next big tech hearing - TechCrunch [Last Updated On: October 7th, 2020] [Originally Added On: October 7th, 2020]
- Amazon and Big Tech cozy up to Biden camp with cash and connections - NBC News [Last Updated On: October 7th, 2020] [Originally Added On: October 7th, 2020]
- Big Tech, Beware: New Bill Aims to Expand Antitrust Laws to Large Businesses Doing Business in New York - JD Supra [Last Updated On: October 7th, 2020] [Originally Added On: October 7th, 2020]
- News Corp. changes its tune on Big Tech - Axios [Last Updated On: October 7th, 2020] [Originally Added On: October 7th, 2020]
- Big Tech: Between a rock and a hard place - Yahoo News [Last Updated On: October 7th, 2020] [Originally Added On: October 7th, 2020]
- Big Tech, Out-of-Control Capitalism and the End of Civilization - Scientific American [Last Updated On: October 7th, 2020] [Originally Added On: October 7th, 2020]
- US House of Representatives to recommend break up of Big ... [Last Updated On: October 7th, 2020] [Originally Added On: October 7th, 2020]
- Big Tech Was Their Enemy, Until Partisanship Fractured the ... [Last Updated On: October 7th, 2020] [Originally Added On: October 7th, 2020]
- Beware the Regulatory Crackdown on Big Tech - National Review [Last Updated On: October 25th, 2020] [Originally Added On: October 25th, 2020]
- Niall Ferguson: The Costs Big Tech Are Prepared To Incur Will Be Entirely Worth It For Them If The Outcome Is A Landslide Biden Victory - FOX News... [Last Updated On: October 25th, 2020] [Originally Added On: October 25th, 2020]
- More Than Two-Thirds of Big Tech Employees Feeling Burnout At Home - Nextgov [Last Updated On: October 25th, 2020] [Originally Added On: October 25th, 2020]