OSIRIS Brief 1.6.0
China’s online reform continues; Apple v Epic; Texas v. Social media companies.
China's Online Reform Continues
China has continued its online reforms this week with two sweeping changes. Following up on last week’s restriction on youth gaming, the South China Morning Post reports China will slow approval of new video games. Slowing video game approval will be difficult to detect and confirm because China’s regulatory mechanisms are so intractable. Nonetheless, the Chinese government’s hostility towards video games is likely to impose real costs on China’s dominant position in video gaming.
Chinese regulators have also ordered companies to stop blocking links to competitors on social media platforms. Before this order, Chinese social media companies would often block links that would take viewers to a competitor’s service. Imagine if you could not link to a Facebook page on Twitter.
I assess these moves to be a part of the current government’s attempts to constrain alternate power base development. Both broad-based profits from video games and pseudo-monopolistic practices are both mechanisms allowing domestic groups to cultivate wealth and power. By forcing companies to comply with costly, centrally controlled regulation, the central government reduces corporate freedom of action. The issue in question is who controls the monopoly, not whether there are monopolies or not.
Fortnite Gets A Little Freed
The lawsuit between Epic Games and Apple ended with something of a victory for both sides. The judge in the case ruled that Apple must allow alternate forms of purchase in AppStore apps. But the judge also ruled in favor of Apple in 9 out of 10 complaints and declined to declare Apple a monopoly. Epic Games is already appealing the ruling, indicating that Epic does not feel like a winner.
Apple v. Epic is unlikely to be satisfactorily resolved for some time because the issues are complicated and poorly understood. Apple is not a monopoly, but Apple’s AppStore practices are incredibly unpopular. Although the judge in the case ordered Apple to allow other payment forms, it does not appear the injunction is specific enough to change Apple’s policy. This problem is unlikely to be resolved until there is enough public knowledge to understand comprehensive rules developed through democratic means. Democratic institutions exist explicitly to ensure that popular opinion has an outlet on inherently divisive issues, with multiple stakeholders. A court is ill-suited to handle such concerns.
Texas Bans Online Viewpoint Discrimination
Texas passed a law prohibiting viewpoint discrimination by social media companies. In theory, the law prohibits social media companies from deplatforming users because of the views the users hold. The law is partially a response to the perception that social media companies censor conservative views, including the ongoing ban by Twitter and Facebook on Donald Trump. Technology companies and critics argue the law could force social media companies to carry misinformation.
I believe the Texas law, and the similar law in Florida are basically principled but misguided. Free speech’s staunchest defenders are often those who feel aggrieved, but the grievance does not make the principle or defense any less important. Protestations about misinformation would be more persuasive if censorship were primarily focussing on unambiguous misinformation like ‘flat earth’ and less about debatable political issues. Nonetheless, it is unclear how any state would enforce such rules, and the proliferation of alternatives like Substack seems to make such rules unnecessary.
Noteworthy
Pro-PRC Influence Campaign Expands to Dozens of Social Media Platforms by Serabian and Foster
America’s Anti-Hacking Laws Pose a Risk to National Security by Pfefferkorn
Connections Between the Russian State and Criminal Actors by Insikt Group
David Benson is a Professor of Strategy and National Security focusing on cyberstrategy and international relations. You can reach him at dbenson@osiriscodex.com.
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