The White House has drafted a text of a proposed executive order for President Donald Trump that would trigger an antitrust investigation into Google and Facebook, according to a copy of the document obtained by Business Insider. The existence of the draft was first reported by Capital Forum.
The proposed text focuses on "bias" at the companies:
"Whether reading news or looking for local businesses, citizens rely on search, social media, and other online platforms to provide objective and reliable information to shape a host of decisions ranging from consumer purchases to votes in elections. Because of their critical role in American society, it is essential that American citizens are protected from anticompetitive acts by dominant online platforms. Vibrant competition in the online ecosystem is essential to ensuring accountability for the platforms that hold so much sway over our economy and democratic process."
"? Executive departments and agencies with authorities that could be used to enhance competition among online platforms (agencies) shall, where consistent with other laws, use those authorities to promote competition and ensure that no online platform exercises market power in a way that harms consumers, including through the exercise of bias."
"... Not later than 30 days from the date of this order, agencies shall submit to the Director of the National Economic Council an initial list of (1) actions each agency can potentially take to protect competition among online platforms and address online platform bias."
The order also commands federal agencies to "thoroughly investigate whether any online platform has acted in violation of the antitrust laws."
The president and other conservatives have repeatedly complained that they believe Facebook and Google (owned by corporate parent Alphabet) bias the way they show news to users by dampening down conservative voices or outlets. In August, Trump tweeted, "Social Media is totally discriminating against Republican/Conservative voices. Speaking loudly and clearly for the Trump Administration, we won't let that happen. They are closing down the opinions of many people on the RIGHT, while at the same time doing nothing to others......."
Trump later claimed that Google did not highlight his State of the Union speech on its front page even though it had always done that for President Obama. But that allegation turned out to be entirely false. Google promoted Trump's State of the Union event in the same way it did for Obama.
Facebook has removed some conservative commentators from its platform, such as the conspiracy theorist Alex Jones, after they broke Facebook's rules against "glorifying violence" and "hate speech" against minorities. Many conservatives believe that shows the platforms do not give them a fair shake.
But there is no evidence that either Facebook or Google systematically discriminates left or right.
The draft order is reportedly in its preliminary stages, though the White House sought to distance itself from the text on Saturday, according to The Washington Post.
"Although the White House is concerned about the conduct of online platforms and their impact on society, this document is not the result of an official White House policymaking process," deputy White House press secretary Lindsey Waters said in a statement.
Three White House aides also told The Post they neither wrote the draft order, nor had any idea where it came from. Another senior official told The Post that the document was, indeed, known around the White House, but had not undergone the formal drafting process.
While the political bias aspect of the order would likely be the most controversial aspect, it would also be the least threatening to either Google or Facebook. The First Amendment to the US Constitution bans the government from restricting or imposing speech. Federal authorities cannot require any company to publish views it favors.
The more worrying aspect of the draft, from the point of view of the companies, is the antitrust aspect. That could cost the companies real money. The European Union recently fined Google $5 billion for abusing its power over phone manufacturers through its dominance of Android; and $2 billion for its distortion of shopping search results that favored Google's own properties over superior independent results.
Google has a dominance of the search market that approaches 90% or more in many markets. And between them, Google and Facebook receive 90% of all new advertising dollars spent on the web. Facebook and Google capture 71% of all digital ad spending in Europe, according to analyst Brian Weiser at Pivotal Research.
Here is the full text of the draft order seen by Business Insider:
EXECUTIVE ORDER TO PROTECT COMPETITON AND SMALL BUSINESSES FROM BIAS IN ONLINE PLATFORMS
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to protect American consumers and workers and encourage competition in the U.S. economy, it is hereby ordered as follows:
Section 1. Policy. Online platforms are central to American commerce and the free flow of news and information. Whether reading news or looking for local businesses, citizens rely on search, social media, and other online platforms to provide objective and reliable information to shape a host of decisions ranging from consumer purchases to votes in elections. Because of their critical role in American society, it is essential that American citizens are protected from anticompetitive acts by dominant online platforms. Vibrant competition in the online ecosystem is essential to ensuring accountability for the platforms that hold so much sway over our economy and democratic process.
[Can expand this section, if necessary, to provide more detail on role of platforms and the importance of competition]
Section 2. Agency Responsibilities. (a) Executive departments and agencies with authorities that could be used to enhance competition among online platforms (agencies) shall, where consistent with other laws, use those authorities to promote competition and ensure that no online platform exercises market power in a way that harms consumers, including through the exercise of bias.
(b) Agencies with authority to investigate anticompetitive conduct shall thoroughly investigate whether any online platform has acted in violation of the antitrust laws, as defined in subsection (a) of the first section of the Clayton Act, 15 U.S.C. ? 12, or any other law intended to protect competition.
(c) Should an agency learn of possible or actual anticompetitive conduct by a platform that the agency lacks the authority to investigate and/or prosecute, the matter should be referred to the Antitrust Division of the Department of Justice and the Bureau of Competition of the Federal Trade Commission.
(d) Not later than 30 days from the date of this order, agencies shall submit to the Director of the National Economic Council an initial list of (1) actions each agency can potentially take to protect competition among online platforms and address online platform bias; (2) any relevant authorities and tools potentially available to enhance competition among and protect the users of online platforms.
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