Posts Tagged ‘Facebook’

Monopoly power on the feudal Internet

June 21, 2017

Maciej Ceglowski, a writer and software entrepreneur in San Francisco, spoke at a conference in Berlin last May about monopoly power on the Internet: –

There are five Internet companies—Apple, Google, Microsoft, Amazon and Facebook.  Together they have a market capitalization just under 3 trillion dollars.

Bruce Schneier has called this arrangement the feudal Internet.  Part of this concentration is due to network effects, but a lot of it is driven by the problem of security.  If you want to work online with any measure of convenience and safety, you must choose a feudal lord who is big enough to protect you.

Maciej Ceglowski

These five companies compete and coexist in complex ways.

Apple and Google have a duopoly in smartphone operating systems.  Android has 82% of the handset market, iOS has 18%.

Google and Facebook are on their way to a duopoly in online advertising.  Over half of the revenue in that lucrative ($70B+) industry goes to them, and the two companies between them are capturing all of the growth (16% a year).

Apple and Microsoft have a duopoly in desktop operating systems.  The balance is something like nine to one in favor of Windows, not counting the three or four people who use Linux on the desktop, all of whom are probably at this conference.

Three companies, Amazon, Microsoft and Google, dominate cloud computing. AWS has 57% adoption, Azure has 34%. Google has 15%.

Outside of China and Russia, Facebook and LinkedIn are the only social networks at scale.  LinkedIn has been able to survive by selling itself to Microsoft.

And outside of Russia and China, Google is the world’s search engine.

That is the state of the feudal Internet, leaving aside the court jester, Twitter, who plays an important but ancillary role as a kind of worldwide chat room.  [1]

There is a difference between the giant Silicon Valley companies and Goldman Sachs, Citicorp and the big Wall Street banks.   The Silicon Valley companies have created value.  The Wall Street banks, by and large, have destroyed wealth.

I depend on Google; I found Ceglowski’s talk through Google Search.   I use Apple products; I’m typing this post on my i-Mac.  I don’t use Facebook or Windows, but many of my friends do.  I try to avoid ordering books through Amazon, because I disapprove of the way Jeff Bezos treats Amazon employees and small book publishers, but I use subscribe to Amazon Prime.

I don’t deny the achievements of the founders of these companies, nor begrudge them wealth and honor.  But I do not think that they or their successors have the right to rule over me, and that’s what their monopoly power gives them.

(more…)

World empires of the Internet

June 16, 2015
Double click to enlarge

Double click to enlarge

Source: Information Geographies

Internet companies are an extension of their nations’ soft power.  This map, based on data compiled in 2013, shows the number of Internet users and the most-visited web site in each country.

What stands out for me is the global reach of U.S.-based Internet companies whose dominance, however, ends at the borders of China and Russia.

Google has been squeezed out of China.  It still has a reported 30 percent market share in Russia, based partly on the popularity of its Android hand-held device, but faces anti-trust charges in that country.

I don’t think Russia, any more than China, is willing to tolerate a strong foreign Internet presence.

Another thing that stands out is the huge Internet penetration in the Southeast Asian nations of Thailand, Vietnam and the Philippines, compared not only to Burma, Laos and Cambodia, which barely register as dot on the map, but also compared to Australia and New Zealand.

(more…)

Google, Facebook and the filter bubble

June 11, 2012

Eli Pariser, former director of the online organization MoveOn, discovered a surprising and alarming thing about Google.  When he does a Google search, the menu he sees on a give topic is different from the menu one of his friends would see.  That is, Google has algorithms, based on his past Google searches and his demographic characteristics, that give him a unique menu based on what he is likely to be interested in.  Facebook, too, deletes links from his Facebook page that its algorithms determine that he is not interested in.  He found Facebook deleted links from his conservative friends because he clicked on them less often than links from his liberal friends.

The problem with this, he said, is that unless you proactively seek out diverse sources of information, you will wind up in a bubble in which everything you get through Google or Facebook will confirm what you already think you know.  He wrote a book about this (which I haven’t read) entitled The Filter Bubble:What the Internet Is Hiding From You.

What this means is that unless you proactively seek out diverse sources of information, you’re not going to get diverse sources of information.  That is a fixable problem.  The more serious problem is the other uses that Google, Facebook and other Internet companies make of the data they come on us.  By integrating seemingly minor bits of information from diverse sources, they can come up with a well-informed guess about what products you’ll buy, your politics and religion and even your personal habits.

The problem with this is that (1) this information can be made available to credit reporting agencies, employers, the Department of Homeland Security and other organizations who will use it in ways adverse to your interests and (2) the information may not be accurate.  Parisi in the TED video above says that if you drink milk rather than wine with your meals, and you frequent fast-food restaurants, demographers would say you’re probably a political conservative.  Well, I drink more milk than wine, and I greatly enjoy an Arby’s roast beef sandwich, and I consider myself a political liberal.

Years ago I used to joke that the same software that Amazon uses to determine that “people like you liked the following books” could be used by the Department of Homeland Security to determine that “people like you committed acts of terrorism.”  I no longer think of this as a joke.  President Obama and the Central Intelligence Agency use computer algorithms in drawing up kill lists of people in tribal areas of Yemen and Pakistan.

Click on A little bird tells me… from Making Light for a benign example of individuals using data mining.

Click on Bubble Trouble for an argument by Jacob Weisberg of Slate that Parisi exaggerates the problem.  Weisberg had friends of different political beliefs do Google searches on highly charged political subjects, and found little difference in the results.

Click on Google Personalization for directions as to how to turn off the Google personalization feature.

Click on The Filter Bubble for Eli Pariser’s web log.

Hat tip to Steve B. and Daniel B.