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Month: July 2023

Move aspartame way down your worry list

Lots of things are ‘possibly’ carcinogenic, depending how and in what quantities you consume them

The International Agency for Research on Cancer (IARC), a body associated with the World Health Organization, recently announced it will classify the artificial sweetener aspartame as “possibly carcinogenic.” The agency has yet to reveal the full data set on which this decision is based but whatever the upcoming release says, the announcement already has many consumers worried about their intake of sugar substitutes.

The truth is that aspartame is safe for consumption. The WHO’s new classification says more about flaws in the agency’s risk communication strategy than it does about aspartame.

IARC categorizes what it calls “agents” into four categories of carcinogen. Group 1 includes those where there is strong evidence of a link with cancer — radiation, for instance, or opium and tobacco. Group 3 agents have been analyzed and shown not to pose any cancer risk whatsoever. To the relief of many readers no doubt, one Group 3 agent is caffeine. Group 2A comprises those agents that are “probably carcinogenic,” indicating a higher risk than in Group 2B, which lists those agents that are “possibly carcinogenic” — which is where aspartame is going.

To determine whether an agent is carcinogenic or not, IARC does a hazard-based assessment, meaning it looks at an agent’s potential to cause harm, not the likelihood it actually will. But IARC is not a food safety agency and its findings say nothing about whether reasonable consumption would constitute a risk for consumers. In the case of aspartame, an individual weighing 60 kilograms would need to drink 12 to 36 cans a day of aspartame-sweetened soda to raise his or her potential cancer risk beyond baseline levels — which is why aspartame has been permitted for use in Canada and many other jurisdictions for over 40 years. While it is unclear how much of an increase you assume at the 12-36 drink range, it is likely less than one one-hundredth of a per cent, in absolute terms. Below this amount of consumption, consumers are not at risk.

Consumers need to understand that the responsibilities of the IARC are very different from those of the Joint FAO/WHO Expert Committee on Food Additives (JECFA) and that it uses quite different methods. JECFA has never found aspartame to be carcinogenic, while IARC, in the long list of products it has evaluated, almost always finds agents to be carcinogenic — because it does not take into account how much a reasonable consumer will take in.

For aspartame to be included in the 2B (i.e., “possible carcinogen”) category, only one of the following characteristics needs to be met: “limited evidence of carcinogenicity in humans, or sufficient evidence of carcinogenicity in experimental animals, or strong mechanistic evidence, showing that the agent exhibits key characteristics of human carcinogens.” “Limited evidence” means the agency does not need to establish a linear relationship between the agent and cancer in the same way it does in Group 1. This makes the “possibly” in “possibly carcinogenic” do a lot of heavy lifting.

The problem with IARC’s classifications is that ultimately they give consumers very limited information. When we remove exposure levels, i.e., dosage, from the equation, almost anything can become harmful. The sun is harmful on a hot summer day, yet most consumers limit their exposure by applying sunscreen or seeking shade. While there are instances in which the sun could be considered carcinogenic, it wouldn’t be good risk communication to label it as a cancer-causing agent, and therefore something to be avoided at all costs — not without alerting consumers to the fact that there is a healthy amount of sunshine they should feel comfortable getting. Just as there is an excessive amount of sunshine that would cause cancer, there is an excessive amount of aspartame that theoretically could too. However, most consumers don’t sunbathe to a cancer-inducing level or drink 10 litres of diet pop a day.

Aspartame and similar food additives have helped us move away from an additive we probably should consume with more care: sugar. Overconsumption of sugar can lead to significant health problems, including obesity and diabetes. Scaring people off artificial sweeteners by blurring the realities of risk perception risks pushing them back to sugar-sweetened drinks that are ultimately worse for them.

The classification of aspartame as a possible carcinogen also opens the floodgates for an entirely different scourge: tort lawyers. Especially in the United States, IARC’s hazard-based assessments have abetted class-action lawsuits that in jury-based trials have frivolously extracted millions of dollars from the manufacturers of safe products. This may enable some trial lawyers to afford high-rise apartments in New York but does little to advance public health.

Cancer is a major problem in our society, and more effort should be made to persuade consumers to modify behaviour that increases their risk of it. That said, advisory decisions such as the aspartame warning do the public health debate a disservice by distorting risk perceptions and feeding into conspiracies about the global food industry poisoning consumers.

Originally published here

Kennedy Saves You From A Boring Summer

Isn’t it cool when people blend their brilliant ideas with technology? Well, residents in Montgomery County, Maryland disagree and are voicing their concerns over private pools being rented out to strangers looking to beat the heat, by using the app Swimply.  Media Director for the Consumer Choice Center and Contributing Editor at The Washington Examiner Stephen Kent joins Kennedy to discuss the regulations the county will try to put in place to control the “pool Airbnb.”

Listen here

DCA rules for flights is a drag for consumers

Flying into Washington, D.C. is not the best experience. While the D.C. metro area may boast three major international airports, service into the heart of the nation’s capital is sorely lacking. Countless passengers will find that they can’t fly into Ronald Reagan National Airport (DCA), nearest to the Pentagon and the famous Washington Mall, and instead must land 30-45 minutes out at Dulles International (IAD) or Baltimore-Washington International Thurgood Marshall Airport (BWI). Atop the inconvenience of inbound and outbound travel from Washington, D.C., consumers can expect longer flight times, inflated ticket prices, and increased delays. How did it get this way? 

A new analysis by the American Action Forum highlights how Washington D.C. got to be such a mess for travelers. Unknown to many, DCA is the only airport in the country hamstrung by a federal regulation known as a “perimeter rule,” which limits inbound and outbound nonstop flights to a 1,250-mile radius. The airport also contends with a high-density rule called a “slot rule,” intended to manage congestion at DCA. 

As laid out by the American Action Forum, 

“The perimeter rule, established in 1966, restricted non-stop service to and from DCA to 650 miles. The rule was put in place primarily to encourage passengers to use the recently opened Dulles International Airport (IAD) located approximately 30 miles west of DCA in Virginia. The rule effectively limited DCA to serve as a short-haul airport while IAD serves as a long-haul airport. The perimeter was expanded in 1981 to 1,000 miles before being expanded again in 1986 to the current 1,250-mile perimeter. The “slot rule” is a federal regulation to manage congestion at five high density airports: Reagan National, JFK, LaGuardia, Newark and O’Hare. A slot is simply a reservation for an arrival or a departure. DCA is limited to 60 slots per hour.” 

On numerous occasions, Congress has authorized the Department of Transportation to grant limited exemptions to the slot regulations. NYC has gotten to make use of these exemptions more frequently since 2000. DCA Slot restrictions at DCA however, are much less common. In that same time period, only 32 “beyond-perimeter” and 20 “within-perimeter” slot exemptions have been issued to D.C.’s primary airport.

Consumers everywhere should be asking themselves – is Washington, D.C. or any major metro, the same as it was in 1981 or 1966? The needs of travelers have changed dramatically, as has the technical capacity of D.C. area airports who serve them. “The population of Northern Virginia, where IAD is located, has more than tripled since the 1970s,” explains the American Action Forum’s Fred Ashton, “Air travel demand has also increased. Between 1999–2019, the number of passengers carried at DCA increased from 13.9 million to 23.6 million. Similarly, the IAD passenger count went from 15.9 million to 24.3. Even with the three expansions of the perimeter rule over this period, passenger volume at IAD increased by over 50 percent.”

Travelers today find themselves being forced to land 30 miles outside of D.C. at Dulles International, because of concerns in 1966 that Dulles would be underutilized. That world is obviously long gone. Consumers today need more choice, not forced visits to Dulles.  

Population density is not the only thing that’s changed. As of today, 28% of Fortune 500 companies are based beyond the arbitrary 1,250-mile perimeter, approximately double the 14% back when the perimeter rule was instituted in 1966. 

Competition between airports is part of the business, especially in a city with more than one point of entry such as D.C., NYC, Los Angeles or Dallas Fort-Worth. When a traveler is scanning Google Flights for the best way in or out of Washington, D.C., they may not even realize that the option of DCA is made to be more expensive. 

“Because of the restrictions on DCA, fierce competition for flight routes demanded by consumers is lacking, and consequently, ticket prices are higher. A recent study found that Washington, D.C. ranked as the most expensive for all domestic flights and beyond-perimeter flights compared to other U.S. metro-area airports. The same study also found that customers would save approximately $75 roundtrip if their beyond-perimeter tickets were priced at average levels. Moreover, because beyond-perimeter flights into DCA are limited, many passengers must stop at an airport inside the perimeter before reaching their destination. Rep. Burgess Owens (R-UT) highlighted that these “unnecessary connections result in lost time, as 40 percent of beyond-perimeter passengers must stop at least once.”

Removing the perimeter rule at DCA would afford airlines the flexibility to adjust flight schedules to better meet the demand of customers. Potential changes could lead to more airlines creating routes that directly compete for customers and likely result in lower ticket prices.”

The best course of action in the interest of consumers would be for Congress to eliminate the perimeter rule, giving airlines at DCA the ability to offer more flights in competition with IAD. One measure which would be a step in the right direction would be the Direct Capital Access Act, brought forward by Representatives Hank Johnson (D-GA) and Owens in the House and Senators Raphael Warnock (D-GA) and Cynthia Lummis (R-WY) in the Senate.

Explained further by Fred Ashton,

“The bill proposes an additional 56 exemptions, or 28 round trips, to in- and beyond-perimeter flights. Forty of these slots will be given to incumbent air carriers “qualifying for status as a non-limited incumbent carrier and 16 available to incumbent carriers qualifying for status as a limited incumbent carrier at Ronald Reagan Washington National Airport.” Carriers awarded these extra slots may operate up to a maximum of eight.”

Travel can be stressful enough as it is for consumers without artificially imposed barriers to efficiency and competition in the Washington, D.C. market. The Consumer Choice Center works tirelessly to promote policy that enhances choice, innovation, and abundance in 100 countries worldwide. That’s why we released our own report on the best airport experiences in Europe titled the 2023 European Consumer Airport Index. Zurich, Brussels, and Frankfurt lead the way in Europe for top notch travel experiences, and we’ll be part of the fight to get Washington, D.C. back on track with more competition and better prices for consumers. 

Navigating the European Summer Travel Madness: Trains, Planes, or Automobiles?

This summer, travel in Europe is fraught with uncertainty as a combination of factors presents challenges for vacationers. High fuel prices for cars, unreliable train services, and the disruptions caused by both environmentalists and strikes in the airline industry make it difficult to determine the best means of transportation. Families planning vacations are left in a quandary, unsure of how to proceed. The escalating fuel costs make road trips less appealing, while the unreliability of trains and the potential for flight cancellations add further complexity to decision-making. As a result, many cherished family vacation plans hang in the balance, requiring careful consideration and adaptability.

Unreliable Railways, Airlines, and Airports:

Travelers in Germany and Europe have increasingly found it difficult to rely on not only the Deutsche Bahn railway system but also the airlines and airports due to strikes. Delays and strikes have become all too common, disrupting schedules and causing frustration for both commuters and tourists. These disruptions have a significant impact on the economy, hindering productivity and diminishing the overall travel experience.

While short-distance flights have traditionally served as an alternative, the challenges faced by airlines and airports due to strikes further exacerbate the transportation issues. Strikes by airline staff and airport personnel disrupt flights, leading to cancellations and delays, leaving passengers stranded and frustrated. This adds to the unreliability of transportation options and limits the alternatives available to travelers.

Climate Activism and the Need for Pragmatic Solutions:

Climate activists have raised awareness about the environmental impact of travel, including both air and road transportation. Strict reactions from law enforcement and better protection of airport infrastructure are needed. Blocking airports and advocating for blanket bans on short-haul flights without offering reliable alternatives only worsen the existing transportation issues.

Seeking a Balanced Approach:

To overcome the current transportation predicament, a balanced and pragmatic approach is necessary. Increased consumer choice and competition can invigorate the industry, driving innovation and reliability. The following measures should be considered:

1. Privatizing Deutsche Bahn: Introducing private ownership and management of Deutsche Bahn would enhance efficiency, accountability, and customer satisfaction. Privatization has proven successful in various industries, encouraging competition and fostering innovation. Moreover, addressing the issues that lead to strikes in the railway sector should be a priority to ensure smooth operations. Splitting the ownership of rail and train services in Germany is imperative to foster competition, enhance efficiency, and improve customer satisfaction. By separating infrastructure management from train operation, multiple companies can enter the market, encouraging innovation and service quality. This would introduce greater consumer choice and lower prices, ultimately benefiting passengers. Furthermore, it would promote accountability and investment in infrastructure, as separate entities would focus on their respective areas of expertise. Splitting ownership would enable a more agile and responsive rail system, capable of adapting to evolving customer needs and technological advancements. Embracing this change is vital to modernize Germany’s railway network and ensure its long-term viability.

2. Relaxed Foreign Ownership Rules for Airlines: Easing restrictions on foreign ownership in the airline industry would stimulate competition and attract new players. This could lead to improved service quality, better pricing, and increased connectivity for travelers. Additionally, measures should be implemented to mitigate the impact of strikes on airlines, ensuring that passengers are not unduly affected.

3. Cutting Taxes on Gasoline and Car-Ownership: While promoting sustainable transportation options is crucial, it is equally important to acknowledge the role of personal vehicles in certain situations. By reducing taxes on gasoline and car-ownership, individuals are given the freedom to choose the most suitable means of transportation for their needs. However, efforts should be made to minimize the environmental impact of personal vehicles through incentives for electric or hybrid vehicles.

The ongoing delays and strikes in the Deutsche Bahn railway system, coupled with limited alternatives due to proposed flight bans, understaffed airports, and climate activism, have left travelers in Germany and Europe grappling with unreliable transportation options. Addressing these challenges requires a multifaceted approach that encourages consumer choice, fosters competition, and acknowledges the role of personal vehicles in certain contexts. Privatizing Deutsche Bahn, relaxing foreign ownership rules for airlines, reducing taxes on gasoline and car ownership, and finding effective ways to address strikes in the transportation sector are crucial steps towards creating a reliable and diverse transportation system. Only by embracing these changes can Germany and Europe navigate their way out of the current transportation predicament and build a more resilient future.

Checking in on Michael Bloomberg’s multi-million dollar global crusade against harm reduction

For years, we’ve covered the extent of former New York City mayor Michael Bloomberg’s multi-million dollar campaigns to try to shape the lives of ordinary consumers.

What began as an erstwhile nanny state campaign on Big Gulps in New York City has ballooned into a massively funded operation that uses grants and NGO funding on many tobacco issues, mostly on outlawing nicotine alternatives like vaping products.

In 2019, Bloomberg pledged $160 million to get US states and localities to ban flavored vaping products, mostly funneled to anti-tobacco groups who’ve pivoted from “stop smoking” campaigns to “stop consuming nicotine in all forms.”

Those efforts quickly scaled to the level of the World Health Organization, including funding US anti-tobacco groups in the millions to even go so far to completely outlaw nicotine alternatives in developing countries across Latin America, Asia, and more. While nations on these continents typically have larger smoking populations than in the US and Europe, they have thus far been deprived of the life-saving nicotine alternatives that would serve as a less harmful switch away from smoking.

In the name of “halting tobacco,” Bloomberg and the organizations he funds have actively sought to poison the well of tobacco harm reduction by miscasting vaping products as “just as bad” as combustible tobacco. Even though health agencies in nations such as the United Kingdom, New Zealand, and even Canada actively recommend vaping products to get smokers to quit, this option is kept off the table in developing nations where Bloomberg has influence.

In February of this year, Bloomberg’s commitment to severely restrict harm reduction increased significantly to nearly $420 million, hoping to drive a larger global campaign in 110 countries around the world to cut off citizens from nicotine alternatives that are less harmful.

Over $280 million of that money will focus on developing countries, offering grants to political groups, health agencies, and politicians to implement a zero-tolerance nicotine agenda.

The issue with Bloomberg’s approach, and by extension the dozens of health and anti-tobacco groups he funds, is their denial of the real scientific evidence on tobacco harm reduction.

Rather than endorse the market-derived alternatives that have been successful in getting adult smokers to quit – much more effectively than government education programs – they have created a false equivalence between the vape and the cigarette.

That not only harms public health, but continues to fester a narrative of misinformation that has captured many public health researchers and government agencies. We know this all too well from our cross-national survey of health practitioners in Europe, in which many doctors were simply unaware of the growing category of less harmful nicotine alternatives like vaping, heat-not-burn sticks, nicotine pouches, and more.

As Bloomberg continues his global crusade against harm reduction, and many groups pick up his baton to carry out policies to deny safer options to smokers who need them in developing countries, researchers and activists must continue to underscore the need for options and consumer choice when it comes to nicotine alternatives.

Consumers, political leaders, and community activists must uphold the both scientific and anecdotal evidence provided by the consumer-led revolution in harm reduction. Only then can we continue to save lives, influence better policy, and ensure a generation of people who will have more options to live their lives, not less.

The FTC has lost their bid to kill the Microsoft-Activision/Blizzard deal

It’s a great day for consumer choice worldwide, as a ruling has been issued out of the United States District Court for the Northern District of California from Judge Jacqueline Scott Corley, denying the Federal Trade Commission’s request for a preliminary injunction to halt the acquisition of Activision-Blizzard by Microsoft. 

“The FTC set out it seems, to protect the business interests of Sony’s PlayStation, completely ignoring their duty to regulate in the interest of American consumers. Judge Corley called out the FTC on it during the hearings and has delivered a sharp ruling here that will allow the deal to go forward,” said Stephen Kent, Media Director for the Consumer Choice Center. “President Biden should be taking note of how poor FTC Chair Lina Khan has been at her job, and how far she’s strayed from the mission of consumer protection.” 

<< Read: The Federal Trade Commission’s embarrassing antitrust crusade | by Stephen Kent of the Consumer Choice Center (The Hill) >>

After five days of hearings involving the FTC, Microsoft, Activision-Blizzard, Sony, and Nintendo, Judge Corley pointed out on the final day that the FTC had fallen short of providing a consumer interest to justify blocking the deal, saying “This is about harms to the consumer, not to Sony.”

“The Consumer Choice Center is excited to see gamers win this case brought by the FTC, because they are indeed the real winners in Microsoft coming together with a top-notch game developer like Activision-Blizzard,” added Kent. 

The deal has one more hurdle to clear in the UK’s Competition and Markets Authority, and we have confidence that they too will join the rest of the world’s consumer protection agencies in letting the acquisition deal close by its July 18th deadline.

Read the ruling here

Government fiddles with tobacco as SA burns

Nearly 2,000 years ago, a six-day fire devastated Rome, leaving half the city’s population homeless and destroying 70% of its buildings. As panic set in, rumours spread that the emperor, Nero Claudius Caesar Augustus Germanicus, had played the fiddle while he watched the city burn. 

In SA today the neglect of our electricity infrastructure has led to unprecedented levels of load-shedding. A cholera outbreak is threatening municipal water supplies in five provinces, and has already claimed more than 40 lives. 

Babies born prematurely in one state hospital are placed in cardboard boxes as there are no incubators available — emblematic of the chaos and corruption that prevails throughout our healthcare system. Unemployment continues to rise, with no end in sight. Investor and consumer confidence in the economy is collapsing, in no small part thanks to the government’s foreign policy blunders.

The government is fiddling while big issues burn the country. For instance, our legislators feel now is the right time to introduce new lifestyle regulations such as the Tobacco Products & Electronic Delivery Systems Control Bill. Rather than deal with the multitude of real crises that threaten South Africans’ lives and livelihoods, parliament and its health portfolio committee are fine-tuning a law that seeks to ban smoking and vaping in private premises — including our own homes. 

Another analogy is that of shuffling the deckchairs on the Titanic. But in many ways this is worse. That parliament should choose to focus on such an issue in SA’s current circumstances is like ordering the Titanic’s helmsman to leave his station and go clean the toilets when the iceberg has already been spotted on the horizon.

SA’s public policy agenda should be focused on the big issues that are wrecking our nation, not on nibbling away at consumer choice. As our defence and foreign affairs ministers tank the value of the rand by playing nice with Vladimir Putin, the health minister has resurrected Vladimir Lenin from the dead to write the Tobacco Bill. 

Read the full text here

Birds and Bees, Beware: New York’s Anti-Pesticide Bill Will Backfire 

Through recently passed legislation, the New York state legislature aims to abolish certain insecticides in defense of the “birds and bees.” 

The chemicals in question, called neonicotinoids, are commonly used in crop production to shield crops from undesired insects — including aphids, which spread the beet yellows virus. 

Lawmakers have been convinced by environmental activist groups that these products kill large swaths of pollinators, and should thus be banned for use by farmers in the state. 

Yet they’ve been misled. If the Birds and Bees Protection Act is signed into law by Governor Hochul, the effects on farmers will be severe, and pesticide use in the Empire State will only increase.

Like most poor public policy, the Birds and Bees Protection Act is built on faulty premises and a feel-good name. The statistics on pollinator decline and colony collapse disorder have long been falsely associated with the use of insecticides. 

Before insecticides were blamed for “killing the bees,” it used to be bioengineered food that was in the crosshairs of activists. 

This assumption was never backed up by evidence, and administrations on both sides of the aisle have come to recognize the incredible climate mitigation and efficiency opportunities associated with genetically engineered food. 

Bees are mostly affected by viruses and habitat loss. While it is possible for regional declines to occur, it is important to note that the honeybee population is well managed, and in no way threatened by extinction. 

The size of the honeybee population is one of the causes of threats to other bee species, and has researchers frustrated by the misguided attention brought solely onto neonics. Effects on non-managed — or wild — bees are harder to count because they are… wild, and thus hard to count. 

Significant problems exist with the methodology applied to identify declines in wild bees. The same flawed methods have been applied to prove a broader insect decline, which also have also been consistently debunked.

It’s impossible to ignore the demography behind legislation like the so-called Birds and Bees Protection Act. 

City-dwelling liberals have a rather romanticized understanding of food production and ecosystem management based on their knack for beekeeping in relatively small backyard gardens. 

Rural communities who produce and manage New York’s food supply, as well as its vital relationship to pollinators, do in fact know better. We’ve already seen how this plays out based on neonics bans in Europe which backfired on farmers, consumers and pollinators alike.

In the European Union, several countries implemented exemptions on neonic bans after they were close to ruining local farmers. The European exemption policy is not just nerve-wracking for all involved actors, it also gives farmers no certainty for the future. 

The Birds and Bees Protection Act circumvents regulatory agencies by banning the products outright, then requires those agencies to make lengthy determinations on appropriate emergency use. It is a cumbersome process that isn’t fair to farmers.

Cutting out regulatory agencies from the process was notably why Governor Newsom of California vetoed a bill that would have similarly banned neonics for non-agricultural use late last year.

Advocates for pollinators mean well, but don’t understand agriculture. One of the known effects of neonics bans in Europe has been that farmers turn to alternative types of chemicals to shield their crops. It has been shown that the use of substitute products reduces their yield and increases insect resistance — all factors that end up being worse for the environment and biodiversity. 

Are we telling farmers that they should acquire more land to account for crop losses, or use products that are sometimes ill-equipped to adequately protect their fields? 

That would be grim news for the over 25,000 farm employees in New York State, who rely on stable yields and a toolbox of reliable methods to protect their farms from invasive species. 

If yields aren’t guaranteed, then we could — as happened in France — expect rising prices in the crop production sector. For New Yorkers already eating the cost of rapid inflation, agricultural regulation of this sort is not responsible. 

Legislation should require more than a noble sounding name and good intentions to become law, and the Birds and Bees Protection Act offers nothing more than that. 

Originally published here

The EU’s ‘regulate first, innovate later’ mantra will sink U.S. tech firms

Last week, a bespeckled white-haired Frenchman strolled the streets of San Francisco in between high-profile meetings and uncomfortable photo ops.

With his horn-rimmed round glasses, wavy hair, and tailored suit, as well as a full entourage of slickly-dressed Europeans, the European Union Commissioner for the Internal Market, Thierry Breton, made his rounds in Silicon Valley.

Breton’s powerful role within the EU’s executive body is to oversee trade in Europe’s single market system, comprising nearly 500 million consumers and citizens. It makes him tremendously powerful. What other European politician could secure meetings with Elon Musk, Mark Zuckerberg, and Sam Altman in just one day?

While the mandate for Breton’s role is rather large — everything from broadband to online platforms, and climate change — his goal in San Francisco was to meet with US tech titans and CEOs to prepare them for the imminent enforcement of the Digital Services Act (DSA), an all-encompassing EU law intended to create a “safer digital space” for Europeans.

The law will come into force at the end of August and lay dozens of new obligations on internet companies that wish to serve users in the European bloc.

The DSA could best be described as Europe’s regulatory model for Big Tech and the Internet. The only problem? Only a sliver of the companies the Digital Services Act targets for restrictions or regulations are even based in the EU.

Out of the 17 companies designated “Very Large Online Platforms” by the law — meaning they will be held to the highest burden of regulation and rules — only one is based somewhere in Europe: Zalando, an online fashion retailer.

The rest are from…you guessed it…the United States. This includes firms such as Meta, Twitter, Google, Snapchat, and Amazon, but also Chinese firms such as TikTok and Alibaba.

The DSA enforces a litany of expansive restrictions and rules that go far beyond any US regulation: severe limits on targeted advertising, more diligent content moderation to remove what the EU deems “illegal” content, protocols for weeding out “disinformation”, and more.

Considering how much Big Tech has been forced to censor users to appease regulators in the free speech haven of the US, it will only get worse overseas.

While the principal aims of the DSA are well-intended — safeguarding consumer privacy and protecting minors — how these provisions are enforced or interpreted should concern all of us who believe in an open web.

To begin, there is platform liability attached to both disinformation and illegal content. In the US, we have Section 230, which exempts platforms from being liable for users’ posts. In Europe, every major online platform would be forced to instantly police its users or face severe penalties while still being weighed down by impossible questions.

Do platforms decide what is disinformation or will governments provide examples? What if a government gets it wrong, like in the early days of COVID? Or has more malicious intent like in unfree surveillance societies?

With no First Amendment-like protections for speech on the European continent, we know the censorious demands of European officials will soon swallow entire budgets of tech firms in order to comply, money that would otherwise be used to deliver value for users. Will it all be worth it?

We know that each platform has the ability to moderate or censor as they see fit, but this is usually done by internal policies and codes that users voluntarily accept, not reaction to a policeman holding the regulatory baton. Rather than focusing on restricting and limiting American tech firms, the Europeans should be doing everything possible to change their own rules in order to foster the innovation that Silicon Valley has been able to provide for decades.

The mindset promulgated from Brussels is “regulate first, innovate later,” in hopes that the talent and ideas will spring from a stable, regulated environment. If that were the case, we’d have dozens of European tech unicorns vying for global dominance. Instead, there are barely any. Or they’ve been bought up by an American company.

Europe has chosen to forgo becoming the world’s test market for innovative products and services, opting instead to be the ultimate playground of bureaucratic and legal restrictions. While some American politicians and regulators may look over with a gleeful eye, it is clear that consumers and creators are getting left behind on the Old Continent, and American users will soon be in the crosshairs.

Originally published here

The Federal Trade Commission’s embarrassing antitrust crusade

Lina Khan is one of the most radical chairs of the Federal Trade Commission (FTC) the United States has ever seen. Luckily for consumers, Khan has not been very successful. The latest evidence comes from San Francisco, where Judge Jacqueline Scott Corley of the United States District Court for the Northern District of California is presiding over the FTC v. Microsoft & Activision Blizzard’s preliminary injunction hearing.

The suit was brought on by the FTC over its expressed antitrust concerns for the burgeoning cloud video gaming industry. It’s not going well, and it’s because Khan is not guided by the traditional metrics of consumer protection and welfare that have long characterized the FTC’s approach to antitrust enforcement.

Coming off a predictable defeat in court against Meta over its bid to acquire the virtual-reality fitness company Within, President Biden’s antitrust warrior appears to have learned little. The FTC chair’s approach to blocking Meta’s purchase was to harken to an ominous “campaign to conquer VR” by Mark Zuckerberg, based on his previous acquisition of Oculus for the purpose of developing Meta’s capacity for VR headsets.

Where most see these tech acquisition deals as a simple matter of comparative advantage for companies looking to serve consumers better products at better prices, Lina Khan appears to see only the phantom of Standard Oil magnate John D. Rockefeller. It’s why her agency has adopted a more radical posture around antitrust policy, expanding its view of what constitutes unfair competition in a 2022 policy statement to include Yale-worthy buzzwords “exploitative, collusive, abusive” in its framework for identifying antitrust violations. The vagueness is the point.

In the minds of progressives like Khan who romanticize the antitrust battlesof the early 20th century, they’re carrying the banner against predatory price schemes and corporate monopolies. However, in nearly every fight Khan’s FTC has picked with big business (Amazon, Meta, Microsoft) since 2021, Khan has demonstrated what she wrote in the Yale Law Journal in 2017, that, “Animating these critiques is not a concern about harms to consumer welfare, but the broader set of ills and hazards that a lack of competition breeds.”

Khan fears corporate expansion (“powers we oppose”) of all kinds and believes it is the role of the federal government to erect obstacles and throw stones to slow their efforts, even when consumers are voting enthusiastically with their dollars for exactly what the tech sector is offering.

In the case of FTC v. Microsoft & Activision BlizzardKhan’s first week in court has been an embarrassment. At issue is whether or not Microsoft absorbing Activision-Blizzard presents a unique threat to competition within the cloud gaming space. Some video game companies keep their licensed games within the walled gardens of their console, such as Nintendo with access to Mario Kart or The Legend of Zelda. Others license their games cross-platform, such as Activision and their top hit, Call of Duty. For reasons unknown, the FTC has made it their mission to ensure that PlayStation, a Japanese company, has ready access to Call of Duty for its users.

Microsoft has offered a number of long-term licensing deals during this process to display good faith and disinterest in cutting off Sony from its major titles. It’s bad business for both parties. At the outset of the hearings, it was revealed via internal emails from within Sony, the unquestioned global leader in video game consoles and chief advocate of the FTC’s crusade, that they didn’t really care much at all about Call of Duty. In the words of Sony CEO Jim Ryan about Microsoft-Activision, “I don’t want a new Call of Duty deal. I just want to block your merger.”

Sony is who the FTC is working to protect, and American consumers should wonder why.

If the federal government is trying to block a company from being acquired, typically that company’s stock price doesn’t go up — but Activision’s has. That’s because, for almost everyone watching, it has become clear that Lina Khan’s FTC is not bringing a case to protect American consumers from corporate predation or an uncompetitive marketplace, but instead to merely make their presence known.

This is how chaperons act on a school field trip or middle school dance; they just want you to know they see you. Only in this case, “being seen” means millions in legal fees for all parties involved, including the public, who foots the bill for proceedings. 

It’s trolling on a multimillion-dollar government budget, and while it’s beneath the dignity of an institution dedicated to a level playing field for businesses and consumers alike, it’s very much on brand for Lina Khan.

Originally published here

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