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1. Big Tech Acquisitions and the Potential Competition Doctrine: The Case of Facebook

Author:
Catherine Ruetschli and Mark Glick
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The Big Tech companies, including Google, Facebook, Amazon, Microsoft and Apple, have individually and collectively engaged in an unprecedented number of acquisitions.When a dominant firm purchases a start-up that could be a future entrant and thereby increase competitive rivalry, it raises a potential competition issue. Unfortunately, the antitrust law of potential competition mergers is ill-equipped to address tech mergers. We contend that the Chicago School’s assumptions and policy prescriptions hobbled antitrust law and policy on potential competition mergers. We illustrate this problem with the example of Facebook. Facebook has engaged in 90 completed acquisitions in its short history (documented in the Appendix to this paper). Many antitrust commentators have focused on the Instagram and WhatsApp acquisitions as cases of mergers that have reduced potential competition. We show the impotence of the potential competition doctrine applied to these two acquisitions. We suggest that the remedy for Chicago School damage to the potential competition doctrine is a return to an empirically tractable structural approach to potential competition mergers.
Topic:
Economics, Science and Technology, Communications, Law, Digital Economy, Macroeconomics, Monopoly, and Antitrust Law
Political Geography:
United States

2. What Is the U.S. Trade and Development Agency?

Author:
Daniel F. Runde and Romina Bandura
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The U.S. Trade and Development Agency (USTDA) is a small independent federal agency whose mission is to help American “companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies.” USTDA links American businesses to export opportunities in emerging markets by funding activities such as project preparation and partnership building in sectors including transportation, energy, and telecommunications. Since it was established 25 years ago, the agency has generated a total of $61 billion in U.S. exports and supported over 500,000 American jobs. In connecting American business to such opportunities, USTDA also links American technology’s best practices and ingenuity with U.S. trade and development policy priorities. USTDA is an instrument to enable American-led infrastructure development in emerging economies and, therefore, frequently sees increasing competition from government-backed Chinese firms and the challenge they can pose to American commercial engagement under the flag of One Belt, One Road (OBOR). OBOR is paving the way for Chinese engineering, procurement, and construction companies to prepare and develop infrastructure projects in OBOR countries in a way that favors Chinese standards, thereby exerting significant pressure to select Chinese suppliers. This creates a potentially vicious cycle—the more China builds, the faster their standards become the international norm, and, ultimately, this cycle could foreclose export opportunities for U.S. businesses and harm American competitiveness in global infrastructure development. U.S. exporters are increasingly requesting USTDA intervention at the pivotal, early stages of a project’s development, to compete in markets, such as the OBOR countries, where they frequently face Chinese competition. Of note, 40 percent of USTDA’s activities in 2016 were in OBOR countries across South and Southeast Asia, Central Asia, the Middle East, and Africa. Although there are other agencies that may seem to do work similar to USTDA, there are various aspects that make it a unique agency. This paper provides a brief description of USTDA, its origin and evolution, the impact on the U.S. economy and its proactive collaboration across U.S agencies. Finally, it offers a set of recommendations for USTDA on how to improve its operations and strengthen its role in the developing world.
Topic:
Development, Energy Policy, Communications, Infrastructure, Trade, and Transportation
Political Geography:
Africa, United States, Middle East, Asia, and North America

3. A Case for Intercultural Communication Training

Author:
Jason Frohnmayer
Publication Date:
09-2017
Content Type:
Journal Article
Journal:
The Ambassador's Review
Institution:
Council of American Ambassadors
Abstract:
It is a heck of a time to be an American diplomat. The work of diplomacy is never boring, but recently it seems like we can barely make it through a cup of coffee before someone calls a meeting to deal with an issue no one has ever faced. Public Diplomacy officers have it particularly hard as we endeavor to explain the United States’ position on issues and work to strengthen people-to-people relationships with those of other countries. The State Department’s diplomatic training center, the Foreign Service Institute (FSI), was created with an understanding of the importance of developing intercultural communication skills. This article advocates for an even greater emphasis on this critical training as FSI examines its curriculum. Out of all five cones of Foreign Service Officer Generalists, Public Diplomacy (PD) officers are called upon most often to interact with people of another culture. The heart of our work is building cross-cultural relationships. Success requires a high level of in­ter­cultural communication competence (ICC). FSI offers several distance-learning courses on cross-cultural communication, including “Communicating Across Cultures” and “Culture and Its Effect on Communication,” as well as offering training on considera­tion of foreign audiences, which is a component of cultural affairs tradecraft required for Cultural Affairs Officers. If PD officers are going to build relationships with skeptical foreign audiences, they should be armed with the best tools, which should include a dedicated focus on intercultural communication theories.
Topic:
Diplomacy, Communications, Culture, and Military Affairs
Political Geography:
United States and North America

4. A Pragmatic Approach to the Right to Be Forgotten

Author:
Nigel Shadbolt, Wendy Hall, and Keiron O'Hara
Publication Date:
03-2016
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
In May 2014, the world of privacy regulation, data handling and the World Wide Web changed dramatically as a result of judgment C-131/12 in the CJEU. The so-called Google Spain decision confirmed that EU data protection legislation gives data subjects the right to request search engines to de-index webpages that appear in the search results on their names. The search engine is not obliged to agree to such requests — certain conditions have to be met and tests applied — but it is not free simply to ignore them. The decision drew on the 1995 DPD2 and the Charter of Fundamental Rights of the European Union, and is consistent with a general direction toward more aggressive protection of privacy rights in Europe, as evidenced by the annulment of the Data Retention Directive, also in 2014 (CJEU 2014). Nevertheless, despite these antecedents, it has been seen as a major step in establishing a right to be forgotten.
Topic:
Science and Technology, Communications, Mass Media, Global Markets, Information Age, Digital Economy, and Privacy
Political Geography:
United States and Global Focus

5. Afghanistan’s Age of Transformation

Author:
Hamdullah Mohib
Publication Date:
03-2016
Content Type:
Journal Article
Journal:
The Ambassador's Review
Institution:
Council of American Ambassadors
Abstract:
The Afghanistan of today would surprise most outsiders, even those who closely follow developments in the country. We are often wrongly branded as a failing state with a struggling government whose young people are fleeing en masse for Europe and whose military has lost control of the security situation. While anecdotal evidence can always be found to lend isolated support to such claims, this sweeping characterization offers a distorted picture of reality. Afghans have always valued and cherished their freedom and sovereignty, as evidenced by our years of fighting off foreign and domestic enemies who sought to take both. Now we are reaching for new goals: freedom from dependence on foreign aid, freedom from corruption, freedom from outdated thinking that justifies the oppression of half our population, and freedom from sclerotic bureaucracy that prevents everything from citizens’ access to justice to the smooth functioning of a free market. Afghans overwhelm­ingly want a modern, sustainable, and self-reliant country whose government serves and is accountable to its people. Yes, the past 15 years have seen war, but they have also produced remarkable growth. Afghan society is thriving, which is a testament to the incredible resilience of the Afghan people. You might be familiar with the progress Afghanistan has made in the areas of education and on women’s rights, but there have also been advances in health, infrastructure, in media and telecommunication, and in sports and culture. 2001 to 2016 has been a time of hardship and sacrifice, but also one of innovation and hope. Today, 25 percent of our cabinet ministers are women, and there are scores of female deputy ministers, ambassadors, district governors, members of parliament, and civil servants. Afghan telecommunication companies cover some 90 percent of the population, which has an estimated 20 million cell phone users. Our media sector is thriving and can rightly be called the freest in the region. When President Ashraf Ghani—a former World Bank economist with an expertise in the causes of and solutions for fragile states—and CEO Abdullah Abdullah led the National Unity Government to power less than two years ago, their first priority was to diagnose the nature and size of the myriad problems facing the country. Then President Ghani designed a strategic roadmap of reforms to take Afghanistan forward. When that plan, “Realizing Self Reliance,” was presented in November 2014 to Afghanistan’s partners, funders, and allies, it was enthusiastically endorsed. Today, Afghanistan is 18 months into an era of unprecedented, sweeping changes—an era President Ghani has named “the transformation decade.” The government is taking innovative approaches to solving Afghanistan’s unique problems, as seen in its national priority programs such as the Citizen’s Charter and the Economic Empowerment Plan for Rural Women. There are early, promising results everywhere you look. Infrastructure projects for roads, rail, and electric and fiber optic connectivity are underway. Public finance has been improved through aggressive anti-corruption measures, with internal revenue increasing by a record breaking 22 percent in 2015. The customs and revenue departments, where corrupt practices have traditionally thrived, have undergone sweeping changes that have sent revenues to historic highs. Our new Procurement Commission reviews all contracts and has saved hundreds of millions of dollars for the government. We are rediscovering and reinvesting in the revival of our ancient past with the launch of the new cultural heritage trust fund this year. Last November, Afghanistan was accepted as a member of the World Trade Organization and is now taking strong steps to improve its ranking in the World Bank’s Doing Business Indicators, such as a new office in the Ministry of Commerce and Industries to monitor how reforms to reduce obstacles for business are being implemented on the ground, and streamline licensing procedures. The “Jobs for Peace” program that took effect late last year in 12 provinces is already providing food security for nearly 100,000 families by creating 5.5 million labor days. Eventually, it will cover all 34 provinces of Afghanistan, and is already performing above expectations. Highlights of major regional economic development deals that have been closed in the last 18 months include the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline, which will bring Afghanistan thousands of jobs and $400 million annually, and the four-nation Central Asia-South Asia Electricity Transmission and Trade Project (CASA 1000). This progress is all the more remarkable when you consider that in the short span of just one year—between the end of 2013 and the end of 2014—Afghanistan underwent cataclysmic changes. Following our first peaceful democratic transition of power in history, we installed an untested new form of government led by former rivals who agreed to come together for the benefit of the country, and our brave national security forces assumed full responsibility for national security despite lacking close air support, available medevac, and other essential capabilities. We also managed to make these gains against some steep odds that continue to work against us. Afghanistan’s economy has yet to recover from the crisis caused by the departure of more than 600,000 foreign military personnel and contractors, which sent revenue plunging and unemployment soaring to 40 percent. We have struggled to implement sweeping governance reforms and address urgent citizen needs while being constrained by budget austerity measures. And we continue to fight a war against two enemies simultane­ously, the Taliban and Daesh. But despite the grim headlines that emphasize enemy attacks, our security forces have exceeded expectations, risking and losing their lives in a fight we did not ask for against invading militant groups who threaten not just Afghanistan, but the region and rest of the world. Throughout our journey toward self-reliance, a key element of our continued success will be the strength and endurance of key partnerships, particularly with the United States. Our international partners, including the United States and NATO, have pledged to maintain a significant troop level to train, assist, and advise our security forces at least through 2017. This is invaluable support because it gives the government the breathing room it needs to solve urgent problems that, when remedied, will mean a more stable country. The Afghan people and government are grateful for the continued friendship of the United States and for the fact that both our nations realize that we are united against a shared threat. We honor everyone who has made the ultimate sacrifice in this fight. A captain in the United States Navy who served with the British Royal Marines in Afghanistan once told me that the greatest show of appreciation we can make for that sacrifice is to protect and build on the progress and freedoms for which so many troops fought, died, and were wounded. And so we are. Fiscal independence is a top priority. We need to create more employment opportuni­ties for Afghans so they can be prosperous inside the country, instead of risking their lives trying to find better lives that are not likely to materialize in Europe. Despite gains in women’s participation in all facets of society, it is completely unacceptable that many women still face the threat of violence and are discriminated against with impunity. More girls need to be in school, laying the foundation to pursue their dreams later in life. Peace is urgently needed, but we acknowledge that the process of achieving sustainable security is long, complex, and requires much more than just reconciliation with insurgent groups. Our government institutions need much more reform so that they are efficient, effective, and transparently in service to the Afghan people. Fortunately, we have a formidable engine for our momentum: Afghanistan’s massive, energetic youth population. Three-quarters of Afghans are under the age of 35, and although this generation has known only war and violence their whole lives, they are not cynical and pessimistic. Rather, they are determined to break with the past and change Afghanistan’s story. They are educated, ambitious, and they want peace and prosperity for themselves and their families. In business, education, government, civil society, and culture, they are pushing boundaries of “what is” and leading us forward to “what can be.” Afghanistan has only just started its transformation. The world should not doubt that we are determined to finish it.
Topic:
Communications, Fragile/Failed State, Governance, Democracy, and Modernization
Political Geography:
Afghanistan, United States, and Middle East

6. Innovative Clusters & New Work: A Case Study of TaskRabbit

Author:
Emily Isaac
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
In the past five years, San Francisco has become home to dozens of new online and mobile “service networking” companies that claim to be “revolutionizing” the way work gets done. Making up what has come to be known as the “platform economy,” these technology companies provide the platforms for online and mobile marketplaces in which users can buy and sell their goods and services. Together, these “platform economy” companies make up a concentrated innovative cluster in the San Francisco Bay Area, and, more specifically, San Francisco proper. One of the sharing economy’s pioneers and largest success stories, TaskRabbit Inc. allows users to outsource small jobs and tasks to local contractors—or, in company lingo, neighborhood “Taskers.” Launched out of Boston in 2008, TaskRabbit is just one of many tech startups that have left Boston for the San Francisco Bay Area. Since relocating to San Francisco, the company has received $37.5 million in venture funding, is available in 20 cities, and reportedly has 1.25 million users and over 25,000 Taskers. Indeed, TaskRabbit exemplifies the immeasurable benefits of strategically locating a firm in an industry cluster.
Topic:
Economics, International Trade and Finance, Science and Technology, Communications, and Labor Issues
Political Geography:
United States

7. MyFitnessPal: How This Winner-Took-All by Helping People Lose

Author:
Emily Alonso
Publication Date:
03-2015
Content Type:
Working Paper
Abstract:
Up until about 10 years ago, when a person thought of fitness, health or weight loss, they did not necessarily associate those things with technology. However, as the world takes on a new digital landscape, health care industries from weight-loss to hospitals are becoming increasingly digitized. The idea behind this digitization of the health/fitness industries is that people able to quantify their health will be more likely to improve it (MacManus). Thus with the utilization of big data, big people will begin to no longer be an “epidemic” in our society. Though this is wishful thinking, digital platforms are making individual health related data processes more efficient, with quicker delivery than ever before possible and an enhanced user experience. Those willing to commit to their own positive physical change whilst utilizing assisting technologies are becoming healthier in a more efficient manner. (Chanelle)
Topic:
Health, Markets, Science and Technology, and Communications
Political Geography:
United States

8. Capitalism and the emergent world order

Author:
Barry Buzan and George Lawson
Publication Date:
02-2014
Content Type:
Journal Article
Institution:
Chatham House
Abstract:
There is general agreement that the world is changing, but considerable disagreement about how it is changing. Commentators variously locate this change in a 'power shift' from West to East, a trade in superpower status between the United States and China, or a transition from an era of bipolarity to one of unipolarity, multipolarity or even non-polarity. These analyses are linked by attention to a smorgasbord of dynamics that are said to be disrupting the smooth functioning of international order: globalization, US militarism, dynamics of revolution and counter-revolution, finance capital, climate change, the rise of non-state actors, new security threats, the dislocating effects of information and communication technologies (ICTs), and more.
Topic:
Communications and Military Strategy
Political Geography:
United States and China

9. Tobias Endler, How To Be A Superpower: The Public Intellectual Debate on the Global Role of the United States after September 11

Author:
Scott Nicolas Romaniuk
Publication Date:
03-2014
Content Type:
Journal Article
Journal:
Central European University Political Science Journal
Institution:
Central European University
Abstract:
From the great rift that has emerged between the United States (US) and much of the international community in a post-9/11 social and political landscape, a disquieting thread of schisms concerning America's political ideologies, democratic deliberation, communication and societal discourse, have seen the academy and public intellectuals seed the conditions for the adoption of the general view that the US is in decline. Establishing an edifying prism through which to engage with these and other problematic issues such as the reformulation of America's global role in the 21st century, Tobias Endler addresses the deep core of the matter by connecting with leading political thinkers and America's luminary intellectuals to consider America in the midst of an intellectual renaissance, and whether this might appropriately be taken as postmortem or rebirth.
Topic:
Communications
Political Geography:
United States

10. Supporting The Internet as a Platform for International Trade

Author:
Joshua Meltzer
Publication Date:
02-2014
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper is about the potential of the Internet as a platform for international trade. A traditional understanding of the impact of the Internet on commerce is derived from the dot.com experience of the 1990s, where Internet companies such as Pets.com and Amazon sold goods online. Since then, the impact of the Internet on commerce has grown and changed. Certainly, the ability to sell goods online remains important. However, the key development is that the Internet is no longer only a digital storefront. Instead, the Internet as described in this working paper is a platform for businesses to sell to customers domestically and overseas, and is a business input that increases productivity and the ability of businesses to compete. Understanding the Internet as a platform for trade highlights its broad economic potential. It emphasizes how the commercial opportunities are no longer limited to Internet companies, but are now available for businesses in all sectors of the economy, from manufacturing to services. Moreover, the global nature of the Internet means that these opportunities are no longer limited to domestic markets, but are embraced wherever Internet access is available.
Topic:
Economics, International Trade and Finance, Markets, Science and Technology, and Communications
Political Geography:
Africa, United States, and Europe