Every Friday, Law Decoded delivers analysis on the weeks critical stories in the realms of policy, regulation and law.
The concept of monopoly will reign in todays Law Decoded. As a fundamental principle, blockchain technology is about distributing both inputs and outputs of information securely. In its still very young lifecycle, the technology has proven to have boundless applications on the basis of this fairly simple principle.
A secondary principle is decentralization, and in this way, blockchain technology seems inherently opposed to monopolies. The big challenge of Bitcoins white paper was finding a way to move value across parties without getting lost in either that proverbial valley between two Byzantine generals OR the trap of a third party. Thats not to say that every firm working in blockchain is morally so grounded as to turn down the opportunity to monopolize its market. But the tech is promising for addressing a huge range of concentrated power especially in a digitizing world.
This week saw antitrust conflict between paeons of big tech and government. While those encounters were hostile, they will likely not result in any major damage to anyones bottom line. It also saw some new consequences for misuse of monopolized monetary power, which is a system that is also unlikely to change soon. The great thing about a monopoly, once you have it, is that its really hard for someone else to take it from you. But these are clusters of power that seem pretty obvious as places youd look to decentralize.
Kollen Post, Policy Editor, @the_postman_
CEOs for the four horsemen of U.S. tech Apple, Amazon, Google and Facebook appeared virtually before Congress on Wednesday to face accusations of functionally acting as monopolies.
The Thursday release of Q2 earnings reports showing rising revenues for each of the firms except Google did nothing to gain these firms sympathy. This was despite efforts during the hearings by the CEOs to depict their companies and their individual biographies as the American dream come true.
The past half-decade has ravaged the public image of tech in the United States. Increasingly dystopian revelations of data-gathering practices and brutal campaigns to squash competition have led to a widespread backlash against Silicon Valley. The role of social media in the 2016 election and subsequent waves of disinformation (including COVID-19) has also ended whatever honeymoon period firms like Facebook and Twitter had enjoyed.
Meanwhile, China, whose digital payments providers are widely praised as ahead of those in use in the U.S., looks set to crack down on those providers based on similar antitrust principles. For China, however, that might be at least in part to clear the way for a broad launch of a digital yuan.
Many of these tech giants are entrenched enough that they may be getting too big to fail. It is undeniable that they provide services that have changed our way of life. As Mark Zuckerberg pointed out during Facebooks investor call last night, had the COVID-19 pandemic happened two decades ago, this shift to working remotely wouldnt have been possible, and many more people would be dying. However, recent events should be getting a lot of people thinking about whether these giant firms are the best we can do and whether we might be better served looking at decentralized alternatives.
Also in the U.S., the Federal Reserves printer continues to go brrr, beating out the countrys total money printing over the first two centuries of its existence in the space of a month. The dollar is, for the first time during this pandemic, looking to be on the ropes.
Quantitative easing the formal term for the Feds use of inflation as a source of funds at the expense of all dollars already out there is a recurring villain in Bitcoin narratives. The idea is that it has to result in a monetary collapse eventually.
The extraordinary expenditures in the U.S. over recent months have seen the dollar stubbornly resisting this narrative, but according to recent analysis, thats changing. Early in the pandemic, global financial institutions and governments scrambled to stock up on dollars, buoying demand and value despite outlays. But this week, as Congress considers another huge stimulus bill, the dollar dipped to its lowest level since May 2018.
Were not witnessing a collapse in the monetary system, but certainly, a strain that, if it continues, will call into question whether the Fed really knows what its doing. At the same time, the head of the countrys major banking regulator is calling for blockchain-based challengers to the Feds central role in payments.
As China and the U.S. dominate headlines focusing on potential central bank digital currencies, and different European Union banks are launching their own trials, the remaining two of the five major currencies in the world have taken major steps indicating the same interest.
The Bank of Japan announced that it had appointed its top economist to a team doing research on the digital yen. The Bank of England, meanwhile, tapped Accenture to update technology for the U.K.s payments system not explicitly referring to a CBDC, but Accenture is deeply involved in the development of CBDCs around the world, including the digital dollar.
The dollar, the euro, the yen, the pound sterling and, as of 2016, the yuan form the basis for the International Monetary Funds Special Drawing Rights and form the backbone of global reserves. None of the five are transacting as CBDCs yet, but its clear that they are all worried about being left out. CBDC technology is not yet standard, but at the very least, research into it has become necessary to those currencies looking to maintain their prestige.
The American Enterprise Institutes visiting crypto expert, Jim Harper, talks digital dollars and new payments systems.
Coin Center, a leader in lobbying and research on decentralized networks, has updated its educational resources.
Kelman Law runs down the basics of paying taxes on both earnings in cryptocurrencies and capital gains on trading in the United States.
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Law Decoded: Big Tech, Central Banks and the Hunt for Monopolies, July 24-31 - Cointelegraph
- Stocks Close Higher With Amazon and Netflix Making Big Gains - Barron's - July 8th, 2020 [July 8th, 2020]
- Samsung needs a splashy product for its splashy product launch - The Verge - July 8th, 2020 [July 8th, 2020]
- Big Tech's Washington hearing will be a spectacle for the ages - Financial Post - July 8th, 2020 [July 8th, 2020]
- Dow gains more than 400 points after big tech rally, Amazon and Netflix hit records - CNBC - July 8th, 2020 [July 8th, 2020]
- Here Come the 4 Horsemen of the Techopolypse - The New York Times - July 8th, 2020 [July 8th, 2020]
- New records show 5,000+ contracts between big tech and the Pentagon - Business Insider - Business Insider - July 8th, 2020 [July 8th, 2020]
- Stock market rising on the indispensable companies - Minneapolis Star Tribune - July 12th, 2020 [July 12th, 2020]
- Tech Stocks Have Been the Markets Stars. Are They Overbought? - Barron's - July 12th, 2020 [July 12th, 2020]
- Tech Stocks Are Getting Scary. Why Theres No Way to Escape Them. - Barron's - July 12th, 2020 [July 12th, 2020]
- Big Tech companies have got universities in their sights - Telegraph.co.uk - July 12th, 2020 [July 12th, 2020]
- The National Research Cloud: Big Tech And Academic Research - Seeking Alpha - July 12th, 2020 [July 12th, 2020]
- Nasdaq At Record as Investors Bet on Big Tech to Weather Virus Storm; Dow Falls - Yahoo Finance - July 12th, 2020 [July 12th, 2020]
- Big Tech saved the day. We still dont trust them. - BetaBoston - July 12th, 2020 [July 12th, 2020]
- Big tech, even bigger heart, provides shields to Hatzalah - The Riverdale Press - July 12th, 2020 [July 12th, 2020]
- Cramer's earnings watch: 'If the banks get hammered, things could get ugly' - CNBC - July 13th, 2020 [July 13th, 2020]
- Big Tech joins fight against Trump's restrictions on international students - The Logic - July 13th, 2020 [July 13th, 2020]
- Pittsburgh Big tech companies are flocking to Pittsburgh. The foundation was laid over decades - Technical.ly Pittsburgh - Technical.ly - July 13th, 2020 [July 13th, 2020]
- Ask the Rational Investor: Is big tech too large? - Massillon Independent - July 13th, 2020 [July 13th, 2020]
- Big Tech went from growth stocks to Wall Street's Treasury bond substitute during the coronavirus - CNBC - July 13th, 2020 [July 13th, 2020]
- Thousands of contracts highlight quiet ties between Big Tech and U.S. military - NBC News - July 13th, 2020 [July 13th, 2020]
- The Information's Takeover Target List - The Information - July 18th, 2020 [July 18th, 2020]
- The Tension Between Competition and Tech Are Gaining Global Attention - JD Supra - July 18th, 2020 [July 18th, 2020]
- Cloudflare DNS goes down, taking a large piece of the internet with it - TechCrunch - July 19th, 2020 [July 19th, 2020]
- As the Revolving Door Swings - The American Prospect - July 19th, 2020 [July 19th, 2020]
- Big Tech is Poised to Pounce on Banking - Global Banking And Finance Review - July 19th, 2020 [July 19th, 2020]
- The Biggest Problem With Investing in Teladoc - The Motley Fool - July 19th, 2020 [July 19th, 2020]
- How Palantir and Peter Thiel might lead the biggest tech IPO of the year - Vox.com - July 19th, 2020 [July 19th, 2020]
- Here's what happened to the stock market on Monday - CNBC - July 19th, 2020 [July 19th, 2020]
- 'Big Tech' Pullback Explains Why Bitcoin Rally Has Paused in Q3 | NewsBTC - newsBTC - July 19th, 2020 [July 19th, 2020]
- Advertiser alliance, media companies, and Big Tech to collude and create a definition of hate speech - Reclaim The Net - July 19th, 2020 [July 19th, 2020]
- Congress has the legal power to investigate Silicon Valley. Let's make it count - The Guardian - July 19th, 2020 [July 19th, 2020]
- The Problem with Big Ideas (and Some Ramblings on Virtual Desktops & Tech's Blurred Lines) - www.waterstechnology.com - July 19th, 2020 [July 19th, 2020]
- Here are all the battlefronts TikTok is currently fighting on - KTVZ - July 19th, 2020 [July 19th, 2020]
- Exxon has topped North Texas' biggest-companies list for 3 decades. Now there's a challenger to the throne - The Dallas Morning News - July 19th, 2020 [July 19th, 2020]
- G20 Finance Officials Eye Solution to Digital Tax Row This Year - The New York Times - July 19th, 2020 [July 19th, 2020]
- Earnings and fiscal debate could be catalysts for stocks in the week ahead - CNBC - July 19th, 2020 [July 19th, 2020]
- Big Tech firms back suing Trump administration over rule that could drive out foreign students - Axios - July 19th, 2020 [July 19th, 2020]
- Big Techs latest reckoning is coming as it continues to rack up record valuations - MarketWatch - July 19th, 2020 [July 19th, 2020]
- Here's a new reason to invest in Europe - WICZ - July 21st, 2020 [July 21st, 2020]
- Recovery from Covid-19 will be threatened if we don't learn to control big tech - The Guardian - July 21st, 2020 [July 21st, 2020]
- Tech watchdog calls on Facebook Oversight Board members to demand real power or resign - TechCrunch - July 21st, 2020 [July 21st, 2020]
- Roku Is A Strong Gatekeeper In Streaming, But Could Be Crushed By Big Tech Analyst - Deadline - July 22nd, 2020 [July 22nd, 2020]
- The Conservative Inc. to Big Tech Pipeline - The American Conservative - July 22nd, 2020 [July 22nd, 2020]
- Are Facebook and Alexa really listening? 6 common tech myths debunked - USA TODAY - July 23rd, 2020 [July 23rd, 2020]
- New Emails Reveal Warm Relationship Between Kamala Harris And Big Tech - HuffPost - July 23rd, 2020 [July 23rd, 2020]
- Amazon-led rally boosts Jeff Bezos and Big tech"s billionaire boys - Proactive Investors USA & Canada - July 23rd, 2020 [July 23rd, 2020]
- Twitter CEO Jack Dorsey Invited To Testify In Congressional Big Tech Hearing - The Federalist - July 23rd, 2020 [July 23rd, 2020]
- EU-wide digital tax on big tech touted as best resource - EURACTIV - July 24th, 2020 [July 24th, 2020]
- Cramer says this tech stock rally is not like 1999 but here is what could stop it - CNBC - July 24th, 2020 [July 24th, 2020]
- Report Doorcast: Big Tech antitrust hearing preview and the Xbox Games Showcase breakdown - Report Door - July 24th, 2020 [July 24th, 2020]
- The one big thing each tech CEO will tell Congress - Axios - July 24th, 2020 [July 24th, 2020]
- Big Tech Unmasked as Anti-conservative by Project Veritas - Newsmax - July 24th, 2020 [July 24th, 2020]
- Antitrust Hearing Involving Apple Chief Tim Cook and Other Big Tech CEOs Reportedly Postponed - MacRumors - July 24th, 2020 [July 24th, 2020]
- Amazon To Invest In Reliance Retail: Is Big Tech Joining Hands To Conquer India? - Inc42 Media - July 26th, 2020 [July 26th, 2020]
- Zuckerberg, Bezos, other tech CEOs to testify at anti-trust hearing - Toronto Star - July 26th, 2020 [July 26th, 2020]
- Lily Allen says she feels sad and calls out big tech amid Wiley antisemitism row - The Independent - July 27th, 2020 [July 27th, 2020]
- Big Tech feels the heat from Washington and small agency leaders dish: Tuesday Wake-Up Call - AdAge.com - July 27th, 2020 [July 27th, 2020]
- Overzealous government officials should stay out of big tech's way - Washington Times - July 27th, 2020 [July 27th, 2020]
- Mint Lite | India covid tally, protests across globe, big tech CEOs & other news - Livemint - July 27th, 2020 [July 27th, 2020]
- Big tech antitrust probe report from US Congress likely by early fall - Times Now - July 27th, 2020 [July 27th, 2020]
- Antitrust Hearing Involving Apple Chief Tim Cook and Other Big Tech CEOs Reportedly Postponed [Update:... - MacRumors - July 27th, 2020 [July 27th, 2020]
- Congressional antitrust probe of Big Tech expected by early fall - The Globe and Mail - July 27th, 2020 [July 27th, 2020]
- Big Tech chiefs get brief reprieve from govt hearing into their growing power - ARNnet - July 27th, 2020 [July 27th, 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 - Fairfield... - July 29th, 2020 [July 29th, 2020]
- Stock futures are flat ahead of Fed decision and Big Tech testimony - CNBC - July 29th, 2020 [July 29th, 2020]
- Ahead of hearing with big tech CEOs, Cicilline says a Biden presidency would lead to regulation next year - Yahoo News - July 29th, 2020 [July 29th, 2020]
- Democrats hurt small business when they attack Big Tech | TheHill - The Hill - July 29th, 2020 [July 29th, 2020]
- Tech leads stocks higher as CEOs testify and Fed keeps rates near zero - Fox Business - July 29th, 2020 [July 29th, 2020]
- WATCH LIVE: Heads Of Amazon, Apple, Facebook And Google Testify On Big Tech's Power - NPR - July 29th, 2020 [July 29th, 2020]
- Big Tech to Testify: What Jim Cramer Is Watching - TheStreet - July 29th, 2020 [July 29th, 2020]
- Apple, Google, Amazon, other Big Tech companies have a climate problem; now being forced to clean up - Firstpost - July 29th, 2020 [July 29th, 2020]
- Commentary: Big Tech is engaged in a hostile takeover of our country - TheBlaze.com - July 29th, 2020 [July 29th, 2020]
- Slog AM: Big Tech's Anti-Trust Hearing, COVID-19 Goes to College, Boeing Is Boned - TheStranger.com - July 29th, 2020 [July 29th, 2020]
- Big tech antitrust probe report from Congress likely by early fall - Reuters - July 30th, 2020 [July 30th, 2020]
- Vergecast: Big Tech antitrust hearing preview and the Xbox Games Showcase breakdown - The Verge - July 30th, 2020 [July 30th, 2020]
- Biased Big Tech algorithms limit our lives and choices. Stop the online discrimination. - USA TODAY - July 30th, 2020 [July 30th, 2020]
- Big 5 Tech Stocks Have Trounced the Market. So Have Their Fundamentals. - Barron's - July 30th, 2020 [July 30th, 2020]
- Top antitrust Democrat opens hearing by comparing big tech firms to past monopolies | TheHill - The Hill - July 30th, 2020 [July 30th, 2020]
- Big Tech antitrust hearing could be colossal or mere theater - Roll Call - July 30th, 2020 [July 30th, 2020]
- Stop with the egg metaphor in discussing Big Tech break-ups | TheHill - The Hill - July 30th, 2020 [July 30th, 2020]