The European Parliament’s vote to phase out the practice threatens to reduce consumer choice and stifle what is one of Europe’s most innovative sectors, writes the Consumer Choice Center’s Yaël Ossowski.

hen we hear gripes about social media, one of the top concerns is targeted advertising.

On any given day, this type of segmented advertising is used by the local hair salon searching for new clients, an environmental group asking for signatures on a petition, and a political candidate seeking your vote. These are all important and vital for our civil societies in Europe.

These groups pay to get your attention on social media because it achieves something essential: to generate business, to advocate for social causes, or win elections. This is facilitated by the unique platforms where we post and share information.

And because social media is usually free, accepting this advertising allows platforms to grow and scale to continue providing value to users. That is the balance that most of us understand. Some people are mildly annoyed, but others prefer advertising that caters to their interests.

Unfortunately, that distinction has given fodder to activists and politicians who want to ban this style of advertising to limit the ability to spread information on social media.

In October, MEPs in the European Parliament voted overwhelmingly in favour of severely restricting and eventually phasing out targeted ads. The proposal was an amendment to the annual competition report, aimed at overhauling the Digital Services Act. It remains non-binding until such regulation is issued by the European Commission.

Using his Twitter account, Dutch MEP Paul Tang categorised the vote as a “win” against large tech companies, further adding that “We see that big tech continues to expand their market power by considering personal data as a commodity. In addition to interfering with our privacy, such a revenue model is unhealthy and sickening for the internet.”

In this case, politicians in Brussels get it wrong. These policy remedies would end up being harmful to both consumers and small businesses, and dumb down the greatly innovative tech sector that provides value to users across Europe.

Social media platforms have grown to be popular because they empower users to speak their minds and profitable because they enable small businesses and groups to find current and future customers. That is a win-win for our societies.

If targeted advertising is dismantled online as some hope, it would severely restrict the options for entrepreneurs and social groups to find supporters and clients. That may sound good in theory, but in practice, it means stopping advertising options for environmental groups, restaurants hoping to deliver food during continued lockdowns, and more.

Regulating innovative technology because of serious legal and health concerns is warranted but stopping information and unique algorithms that give us what we want is a step too far.

We must face the fact that social media has become the new marketplace where we seek information. If we legislate and ban specific methods of sharing information on products and services online, this reduces consumer choice and chokes off entire industries. This harms everyone.

“If we legislate and ban specific methods of sharing information on products and services online, this reduces consumer choice and chokes off entire industries. This harms everyone”

More than harmful, it is also based on the false assumption that adults are not intelligent enough to understand or interpret advertising. This is both paternalistic and wrong.

Of course, ads are annoying for those who do not want them. And, luckily, the same technology that created targeted micro-advertising has also spawned ad-blocking browser plugins, Virtual Private Networks, and private browsing modes that are simple and easy to use for those who want them.

Thanks to technology, everything we do online has gotten more efficient, more effective, and less costly. It has empowered non-profits like mine, given a voice to millions of entrepreneurs, and offered untold value to users around the world.

As advocates for a free and open Internet, we must continue to uphold innovation and ensure it is protected from those that wish to limit its potential. The European Union needs to find ways to foster, rather than choke off, the innovation that every citizen on the continent deserves.

Originally published here.

When we hear gripes about social media, one of the top concerns is targeted advertising.

On any given day, this type of segmented advertising is used by the local hair salon searching for new clients, an environmental group asking for signatures on a petition and a city council candidate seeking your vote. These are all important and vital for our civil society.

These groups pay to get your attention on social media because it achieves something essential: to generate business, to advocate for social causes or win elections. This is facilitated by the unique platforms where we post and share information.

And because social media is usually free, accepting this advertising allows platforms to grow and scale to continue providing value to users. That is the balance that most of us understand. Some people are mildly annoyed, but others prefer advertising that caters to their interests.

Unfortunately, that distinction has given fodder to activists and politicians who want to ban this style of advertising to limit the ability to spread information on social media.

The latest scandal du jour, as one can guess, revolves around the 2020 elections and how political forces targeted would-be voters on social media.

Using Twitter and Facebook proved effective for both the Biden and Trump campaigns, up until both platforms halted political advertising. Hundreds of millions of dollars were spent and tens of millions of voters were reached.

In a hearing on Tuesday, senators on the Judiciary Committee excoriated Twitter CEO Jack Dorsey and Facebook CEO Mark Zuckerberg for their proprietary algorithms that drive engagement and sell ads.

Senators took turns grinding their axes, lodging complaints about content moderation, targeted advertising and market power.

The policy remedies discussed have so far been two-pronged, either using antitrust laws to break up the social media firms or rewriting Section 230 of the Communications Decency Act that currently treats online outlets as platforms rather than publishers, not making them liable for the content shared on their pages.

In either case, politicians in Washington get it wrong.

Action in either direction would end up being harmful to both consumers and small businesses, and dumb down the great innovative tech sector that is the world’s envy.

Social media platforms have grown to be popular because they empower users to speak their minds and be profitable because they enable small businesses and groups to find current and future customers. That is a win-win for society.

If targeted advertising is dismantled online as some hope, it would severely restrict the options for entrepreneurs and social groups to find supporters and clients.

That may sound good in theory, but in practice it means stopping advertising options for environmental groups, restaurants hoping to deliver food during continued lockdowns and more.

Regulating innovative technology because of serious legal and health concerns is warranted but stopping information and unique algorithms that give us what we want is a step too far.

We must face the fact that social media has become the new marketplace where we seek information. If we legislate and ban specific methods of sharing information on products and services online, this reduces consumer choice and chokes off entire industries.

This harms everyone.

More than harmful, it is also based on the false assumption that adults are not intelligent enough to understand or interpret advertising. This is both paternalistic and wrong.

Of course, ads are annoying for those who do not want them. And, luckily, the same technology that created targeted micro-advertising has also spawned ad-blocking browser plugins, Virtual Private Networks, and private browsing modes that are simple and easy to use for those who want them.

Thanks to technology, everything we do online has gotten more efficient, more effective and less costly. It has empowered nonprofits like mine, given a voice to millions of entrepreneurs and offered untold value to users around the world.

As advocates for a free and open internet, we must continue to uphold innovation and ensure it is protected from those who wish to limit its potential.

Originally published here.

Protecting a free and open internet means not using punitive regulations or policies to hamstring social networks because of the scandal of the day.

Call it election interference, censorship, or simple editorializing, but Twitter and Facebook’s throttling of several New York Post articles this week has drawn lots of criticism.

The stories allege that Hunter Biden, former Vice President Joe Biden’s son, introduced Ukrainian energy adviser Vadym Pozharskyi to his father after receiving a cushy $50,000 a month board seat at the company Burisma. (Other outlets have contested the report).

There is no question that the social networks in question made a bad call. Disabling the link on the various platforms made even more people seek it out, creating a “Streisand Effect” of mass proportions.

But the content of the articles isn’t what really matters.

The reaction to the New York Post report reveals just how much pressure is put on social networks to perform roles far beyond what they were intended for. We want them to simultaneously police speech online, keep the networks free for open discussion, and be mindful of “fake news” that spreads rapidly.

So, it is important to understand why Facebook and Twitter felt they had to censor the story in the first place—and why all of us are actually to blame. For the last several years, campaigners, activists, and politicians have primed us all to accept the byzantine expectations and regulations put on social networks.

From Netflix documentaries such as The Social Dilemma and The Great Hack to the criticisms of “surveillance capitalism,” many voices are calling for further regulation of social media networks.

Some on the Right smirk as Sen. Josh Hawley pens legislation to repeal Section 230 of the Communications Decency Act or to ban “infinite scrolling” on social media apps. Meanwhile, some on the Left cheer as technology CEOs are dragged before congressional committees and castigated for “allowing” Trump to win in 2016. 

This week, it was revealed that the New York State Department of Financial Services wants a “dedicated regulator” to oversee social media platforms. Other states will likely follow suit.

But what we’re all too loath to admit is that these firms do what any of us would do when under scrutiny: they pivot, they engage in damage control, and they aim to please those with pitchforks outside their doors. It’s the same whether it’s Black Lives Matter or President Trump.

Facebook has committed to ending all political advertising online (hurting non-profit advocacy groups like mine) and Twitter already implemented a similar policy last year, lauded by political figures such as Hillary Clinton and Andrew Yang.

Of course, when tech giants censor or delete stories that we perceive to advance or hurt our political “team,” we are all up in arms. But protecting a free and open internet means not using punitive regulations or policies to hamstring social networks because of the scandal of the day.

Internet policy remedies dreamed up in Washington, D.C. will almost always end up hurting those of us who don’t have power or deep pockets. It harms the small businesses that use social networks for advertising, and it sets up more roadblocks for ordinary users who simply want to check in with friends and family. 

Big Tech isn’t powerful because it has money, but because it has delivered superior products, those that have left platforms such as AOL, Myspace, and Yahoo in their wake.

Social networks have evolved from places to connect and share information across borders to intellectual and political battlefields where we wage digital wars.

Of course, there should be regulation in some respect. But it should be smart regulation that keeps platforms relatively free and open and provides incentives for future innovation. The powerful platforms of today can afford to comply with cumbersome rules, while new market entrants cannot. 

That means that with every new proposal to roll back Section 230 protections or require quasi-governmental fact-checking functions around Election Day, we’re depriving consumers of choice and entrepreneurs of the ability to innovate.

Of course, targeted censorship of certain accounts or stories on social media networks is bad. But policy “solutions” dreamed up by technologically illiterate bureaucrats and power-hungry politicians would no doubt be even worse. 

Originally published here.