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Open Data and Open Internet Dogma: Sergey Brin’s Guardian Interview and the Political Economy of Google

The Guardian ran a great set of articles last week, the “Battle for the Internet”.  It included essays, video-shorts and interviews with the A-list of the Twitterati, bloggers, pundits, and OSPs (other smart people), from Clay Shirky, dayna boyd, Evgeny Morozov, Emily Bell, and more.

Sergey Brin, Google’s co-founder, director and major shareholder kicked things off with an interview on Monday with a full-throated defense of “open data” and an “open Internet”. “Web freedom faces the greatest threat ever”, he warned.

Brin skewered governments, Facebook and Apple, and the copyright grab by the entertainment industries in uncharacteristically blunt terms for the mounting threats. He condemned authoritarian regimes such as China, Saudi Arabia and Iran, of course. And he chastised the steady creep of complex, costly and unpredictable government regulation and national security pressures in all countries.

Facebook and Apple’s walled garden approaches were singled out because, Brin argued, they “risked stifling innovation and balkanising the web”. “All the information in apps – that data is not crawlable by web crawlers. You can’t search it . . . . There’s a lot to be lost,” he continued.

Finally, Brin lambasted the entertainment industries’ push to turn ISPs, search engines and other digital intermediaries into copyright cops through bills such as SOPA and PIPA in the United States, and their equivalents elsewhere. It is a checklist of some of the most important forces bearing down on the internet that others have identified for more than a decade, starting notably with Lawrence Lessig’s Code in 1999.

Most of what Brin says in the Guardian interview is not new, however, and can be found in the company’s latest annual report. When your Promethean mission is to “organize all the world’s information and make it universally accessible and useful”, as the “about” page of Google’s corporate website and in its annual report (p. 3) boasts, government imposed web blockades and surveillance, exclusive walled gardens and excessive copyright are a threat to your business.

Probably the most surprising thing that Brin told the Guardian is that he no longer believes the internet is an uncontrollable technology.  Five years ago “I thought there was no way to put the genie back in the bottle, but now . . . “, he says, “it seems in certain areas the genie has been put back in the bottle”.

It is the end of a dream. For those who still cling to the idea that the internet cannot be regulated, Brin’s disillusioned conversion will come as a needed surprise.

Brin quickly recanted from his denunciation of the digital feudalism represented by Apple and Facebook’s walled garden strategies in the face of criticism. In a blog post two days after the Guardian interview, he “clarified” that he actually deeply admires Facebook and Apple. And of course, the power of the state is wholly different than the search for profit and power through the market, he reassured everyone. And peace returned to the kingdom . . . .

That may be so, but Google’s annual report does single out social media companies as threats to the searchable web and as a risk to the company’s advertising business from which 96% of its $38 billion in revenue last year came (see p. 9). Indeed, a comprehensive and universally searchable web is the engine of the Google machine, responsible for cranking out profits in excess of 25 percent per year. There is no doubt that walled gardens and tethered apps could obliterate Google’s bottom-line by putting more and more of the internet beyond the reach of search and undermining the hyper-linking structure that has made the internet what it is.

A searchable web is a navigable web and this is not just in Google’s self-interest, however, but everybody who uses it. As Google states in its annual report, the company is fully committed to making “the internet a more useful and enjoyable experience for our users” (p. 9). Of this, I have little doubt. The problem is not the neglect of users, but rather the potential for over coddling and cocooning them in a web of their own information — a ‘filter bubble’ (Pariser).

Searching and linking really are useful and in this case what is good for Google, is good for us. These functions help to filter the potential disorder of a million voices all clamouring at once for attention — the Babble Effect — into a meaningful and intelligible shape (see Benkler; van Couvering). Searching and linking are also good for democracy, according to Yochai Benkler, although that does not mean that they eliminate social, political, economic, media and cultural power. They do not. In fact, they can and do concentrate attention while also reproducing and reinforcing hierarchies of power just like in the ‘real world’ (Hindman, Davis, ch. 7, BakerShirky).

Openness and transparency, searching and linking without limits are in many instances desirable things, but not always. However, Google’s appeal to them is one-sided, flat and selective, even if seductive. This is not to say that it’s appeals to these values are false. They are not and I think that there is no doubt that Google has more than just a shallow commitment to values that go beyond its corporate bottom line.

Indeed, even critics acknowledge this. Siva Vaidhyanathan, for instance, in The Googlization of Everythingsees Google’s commitment to making all the world’s information accessible as embodying something deeply desirable — a Digital Alexandria for the 21st Century, perhaps — but which is also a messianic and technocratic project driven by the mindset of engineers, and ego centric ones at that. Evgeny Morozov, in The Net Delusion refers to the “Google Doctrine”, the notion that the alchemy of Silicon Valley capital mixed with internet and enlightened State policies by the governments of the west will solve all the world’s problems and universal peace will settle in over all its peoples.

To its admirers, Google’s motto is not just rhetoric, but a whole way of being — an ontology — that dazzles and forces us in the face of challenges to ask, WWGD? (“What Would Google do?“, as Jeff Jarvis fawningly puts it in his homage to Brin, Page and Schmitt at Google & Co). Brin encourages a similar kind of view by linking his own personal biography with Google’s values in the opening pages of the company’s annual report.

Google’s rhetoric and what others have to say about it are also matched by several real initiatives that go beyond the corporate bottom line. Take, for example, the Measurement Lab (MLab) created by Google, the New America Foundation and the PlanetLab Consortium in 2008 and operated ever since.  The M-Lab allows internet users across the planet “to test whether their ISP is blocking or throttling BitTorrent and other protocols” free of charge.

Canadians, for instance, learn that they have one of the most throttled internet systems amongst the forty countries monitored by the MLab Project.  We also learn that Rogers has the dubious distinction of being the heaviest throttler of BitTorrent of all ISPs surveyed. The chart below shows levels of BitTorrent throttling in Canada relative to the US, UK, Finland, Australia and New Zealand.

Table 2: Network Throttling in Select Countries, 2008 – 2010

 

2008

 

2009

 

2010

 

AVG RNG AVG RNG AVG RNG
Canada

10

26

29

87

20

75

US

17

47

14

60

6

14

UK

16

23

26

44

13

21

Finland

6

5

5

3

6

3

Australia

11

16

21

29

9

16

New Zealand

19

23

32

37

10

1

Source: M-Labs.

This is useful data to have, indeed.

Google also created and maintains the Transparency Project, which documents the number of requests that governments make to Google to take down or block access to specific content, or websites. The number of requests from government sources in Canada are comparatively low. In the U.S., they are comparatively high. The Transparency Project also maps internet traffic patterns around the world to detect barriers to the free flow of information, whether that is coming from government restrictions, broken cables or other obstructions in the internet plumbing.

Google’s participation in the Global Network Initiative, an effort set up in 2008 on the 60th anniversary of the United Nations Universal Declaration of Human Rights as a forum for commercial internet companies to wrestle with the rights, responsibilities and ethics of freedom of expression and privacy online, is yet another good example.  To be sure, there is much to be desired with respect to the GNI and questions about what it has accomplished, if anything. Nonetheless, it does bring together several major internet companies with leading scholars and public interest groups that have solid track-records on these issues, such as the Berkman Centre for Internet and Society at Harvard, Centre for Democracy and Technology (CDT), Index on Censorship, Electronic Frontier Foundation, World Press Freedom Committee, and so forth. Facebook and Twitter, in contrast, are missing in action.

At the same time that Google’s commitment to transparency, open data and the open internet are in many ways laudable, its’ conception of these things are simplistic, one sided and selective. As the company itself notes in its annual report, its own business relies on “confidential procedures” (p. 6). The detailed mechanics of the company’s Page Rank system that it uses to index the web and serve up search results are also shrouded in mystery. Only a very select view have seen behind the curtain.

The company’s ownership structure is also based on tight control. Sergey Brin, Larry Page and Eric Schmidt control two-thirds of Google’s voting shares and use this to make decisions from the top. It keeps the rest of the commoners at bay, and it is not the most open way to do business. The company’s own Annual Report states, “this concentrated control could discourage others from initiating any potential merger, takeover, or other change of control transaction that other stockholders may view as beneficial”. It appears that openness has it limits.

When it comes to the ownership and control of our personal information online, however, Google’s stance is that there are no such limits and not surprisingly so, since openness removes any impediments to the unlimited, systematic and comprehensive collection of user-generated information that are the foundation of its business. As Christian Fuchs notes in his A Contribution to the Critique of the Political Economy of Google, internet users produce reams of information without pay for the likes not just of Google but Facebook, Twitter, LinkedIn, and the rest of the social media platforms whose businesses depend almost entirely on the limitless collection of personal data and the hyper-exploitation of our ‘free labour’. This unlimited collection and analysis of personal information, remember, is the foundation of Google’s revenues of roughly $38 billion last year.

The debate is not whether or not Google, Facebook and Apple dominate their respective spaces, but whether that dominance will prove relatively immovable or transitory (also here and here). There are only a few countries where Google is not the dominant force in search and online advertising: China, Russia, Korea. In the U.S., Google’s revenues of approximately $17.5 billion in 2011 accounted for well over half of all online advertising revenues, which emarketer put at roughly $32 billion last year.

 

Google Share of Search

USA 66
Germany 93
UK 80
France 90
Italy 88
Canada 81
Australia 92.5
New Zealand 76
S. Korea 9
China 13
Japan 48
Avg Google (67)

Source:  Comscore, 2010a, Data Passport – 1st Half 2010; Comscore, 2010b, Data Passport – 2nd Half 2010; Alexa.com Top 50

Google’s dominant position means that its own standards with respect to data collection, retention and use also serve as defacto standards of what we can expect when it comes to online privacy. The flipside of Google’s full-throated defense of transparency is that any limits to the collection of personal data are a threat to the ‘free flow of information’. Indeed, EU moves to enhance personal data protection have been branded in exactly such terms, an affront to the ‘open Internet’.

Yet such a view is simplistic, and an opportunistic manipulation of the language and values associated with the internet that are worthwhile when pursued in a less hamfisted way. As scholars such as Helen Nissenbaum have long noted, the idea of privacy is not simply the desire to be left alone but our capacity to set the conditions for how information about ourselves is disclosed and used. And those decisions do not hinge on dogmatic adherance to values in the abstract but notions of trust forged with an eye to the quality of the relationship that we are involved in at a given moment and the contingent, contextual features in which our activities and relationships with others are couched. In short, the more intimate the relationship, the more we are likely to disclose. That is why it’s okay to get naked with a lover, but not in the streets or with Google.

Openness can also be a threat in dangerous situations, whether that’s being gay in a small town or during revolutionary times when confronting repressive states armed to the teeth. That, unfortunately, was a lesson learned the hard way by several people in North Africa and the Middle East during Arab Spring as well as the London Riots last summer when their posts to Facebook were used by the military and police, respectively, to track people down.

So, come to think of it, perhaps it’s a good idea that Facebook is walled off from search. Maybe people don’t want their activities on Facebook to be open and searchable by the whole world? There are already serious issues with Facebook’s own unbridled exploitation of personal data that it would be unwise to permit Google to open it even further to search and disclosure on the basis of its own blind adherence to “making all the world’s information universally available and accessible”.

Ultimately, dogmatic adherence to ‘open data’ and the open internet serve no one well. Recent U.S. court cases have also made it clear that  businesses built upon maximizing collection of personal information also makes such services easy targets for State surveillance.

Who owns your personal information? Not you, according to the courts, when the terms of service policies of Google, Facebook and Twitter baldly state that their business depends on the open and unlimited collection of user data as the foundation of their own businesses (see herehere and here).

Seen from this angle, then, openness is not just a license for Google to exploit the collection of user generated content/data for its own promethean pursuits, but a recipe for turning the digital media behemoths that now straddle many of the key cross-roads of cyberspace into functionaries serving the interests of the State and others. Indeed, this is exactly why Google, social media sites (Facebook and Twitter), music downloading sites (Apple) and payment providers (Paypal) and so forth are being targeted for inclusion into the apparatus of copyright enforcement, law enforcement and national security.

In other words, blind allegiance to the ‘open data, open internet’ mantra gives rise to several of the problems that Brin railed about in the Guardian interview to begin with. Only once we abandon one-sided and dogmatic notions of openness will we be able to achieve the kind of internet fit for free citizens in a democratic society.

Open Letter: An Apology to Sheila Copps and the Bright Future of the National Press Club

Dear All,

In this letter I want to offer my sincerest apology to Sheila Copps, the President of the National Press Club, for comments made in my open letter to the members and directors of the NPC two weeks ago.

For those of you who read the letter, you will recall that I was deeply concerned about governance issues at the NPC and especially about the relationship between the executive committee and the rest of the board of directors.

At the same time, however, I realize that while my intentions were good, and the stakes important, I cast the net of my criticism too wide. Moreover, some additional facts have been brought to my attention that require that I set the record straight in terms of some of the points raised in the letter.

The most important of these matters relates to Sheila Copps, the President of the NPC. Since my letter, several people have reminded me that long before she established herself as a formidable force on the Canadian political scene, Sheila made a mark for herself as a journalist. I agree. She worked as a journalist for the Hamilton Spectator and the Ottawa Citizen before her political career took off and again as a columnist, at various times, for the National Post, Toronto Sun and other newspapers since leaving Parliament in 2004.

Regrettably, I did not delve into her background, and as a result let her role as a leading Parliamentarian and political figure in the past eclipse her past and current status as a journalist. I should not have and for this I apologize. Befitting the position of president of the NPC, Sheila has lent her formidable skills to the organization at a turning point in its history and has, like all members on the executive committee and board of directors, done so in good faith, voluntarily and without pay of any kind.

Several important steps have been taken in recent days to consider, among other things, the governance concerns that I outlined in my letter. A new committee has been struck to thoroughly review the rules and procedures that will guide the NPC into the future. The NPC co-hosted an event featuring the award-winning U.S. journalist and Wikileaks chronicler, Glenn Greenwald, this past week.

The NPC is now regaining its footing as a central institution in the practice of journalism and public life in Canada. In addition to Ms. Copps, the board of directors now boasts amidst its ranks a senior national journalist, a film producer, another who serves as the NPC’s institutional memory, an artist, a television reporter, a diplomatic statesman, a good financial manager, an academic and a few other talented people.

With these people and the recent steps taken, the NPC has turned a corner and the future of the organization is bright. In the next few months, further renewal will occur as a few spots on the board of directors that have recently opened up will be filled by election. For journalists, media practitioners or anybody else who wants to help chart the NPC’s role at the heart of journalism and public affairs in Canada, now is a great time to step forward.

All-in-all, I hope that this sincere apology to Sheila Copps and any other member of the board of directors who may have felt besmirched by my open letter will help to assuage hurt feelings. I also hope that it reinforces our ability to work hand-in-hand for common goals.

Sincerely,

Dwayne Winseck

Ask the Wrong Questions and . . . : the CRTC’s Review of Wireless Competition

In the middle of last week the CRTC began to solicit views on whether or not a national code for wireless services is necessary. The CRTC had received several applications, it said, suggesting that such a code might be needed.

Who might want such a code?  The big wireless providers, Rogers, Bell and Telus, that’s who, and their lobby group, the Canadian Wireless Telecommunications Association.

Why? Because they’ve been facing mounting efforts at the provincial level to more strictly regulate their pricing and service packaging. Ontario, Manitoba and Quebec have been leading the way (see here).  Rabble rousing Openmedia also has the wireless industry in its sights with its “stop the squeeze” campaign (also see the Open Media/CIPPIC study here). A standard code generated by the industry could help dampen the clamour.

In its notice, the CRTC wondered aloud about whether its reliance on competition to the maximum extent possible in wireless, and its decision way back in 1994 to not regulate the sector, might be misguided in light of stubbornly low levels of competition.  Anybody who thinks the regulator should actually do something has to (a) show the circumstances have in fact changed and (b) that this change represents a turn for the worse. Only then will the CRTC intervene.

And if does intervene, what can we expect? Not real regulation, but rather a “national code for wireless services” designed by and mostly for the industry.

So, have things changed? Well, yes, of course: 2G, 3G, now 4G and LTE. Smart phones are increasingly making their ways into the palms of Canadians across the land. The internet of devices is highly wifi dependent, and mobile data and video use is growing fast. The industry has also grown from a $3.7 billion industry in 1996 to $18 billion in 2010.

However, one thing that has stayed constant is the fact that the wireless services have never been truly competitive and likely never will be. Nor, however, is it necessary that we expect them to be. But the CRTC said that it would need evidence to indicate that market forces are not working before it would act.

Let me introduce two such indicators: one, the empirical evidence on the state of competition and concentration in the wireless sector between 2000 and 2011 and, two, some indicators of price and quality drawn from relevant global standards.

1. Competition and Concentration: In 2000, the big three wireless providers — Bell, Rogers and Telus — accounted for just over 87% of the industry. Today, they account for just over 93%. The “big three” control more of the sector than ever, and besides that Rogers and Bell now straddle every other significant segment of the telecom-media-internet industries. What they do in any one of these areas affects the developments elsewhere, and broadband wireless services in particular.

The wireless industry was already highly concentrated in 1994 when the CRTC decided that the market was competitive enough to stop doing what it’s suppose to do: regulate. Competition did increase modestly during those early years, with two new rivals – Clearnet and Microcell — snatching away 12 percent of the market away from the incumbent telcos and Rogers by 2000. The two rivals were short-lived, taken over by Telus and Rogers in 2000 and 2004, respectively.

Competition peaked in 2000, then the sector became sharply more concentrated by 2004, before falling slightly and staying relatively flat ever since. Whether recent newcomers — Mobilicity, Wind Mobile, Public and Quebecor — will fare any better, it is still too early to tell. With only 2.7% of the market as of 2011, they are far off the mark set at the high-point of competition in 2000.

The graph below charts the trend between 2000 and 2010 using the  Herfindhahl – Hirschman Index (HHI). Remember, the basic rule with the HHI is that scores under 1000 indicate reasonable competition, 1000-1,800 moderate levels of concentration and anything over that, high levels of concentration. They’ve been over 3000 for most of the decade.

HHI scores for the Wireless Sector, 2000 – 2010

Sources: CRTC’s Communications Monitoring Report for 2008 and 2010, and the Telecommunications Monitoring Report from from 2000 to 2007,  Canadian Wireless Telecommunications Association’s Wireless Phone Subscribers in Canada.

While there’s room for interpretation, the bottom line is that the wireless sector is and always has been highly concentrated. It is less competitive now than it was in 2000, when ‘market forces’ peaked.  The CRTC is right that after this length of time, and in the face of the immovable reality of high levels of concentration, yes, maybe it is time to temper the ‘maximum reliance on market forces’ mantra.  A code may just be in order, although one might go even stronger and ask for proper regulation, i.e. for the CRTC to do its job versus playing overseer to an industry-developed code.

2. What about Prices and Quality?

In terms of prices, we can look at things charitably and not so charitably. First, we can look at the CRTC’s data for information on pricing for wireless services, but we’d look in vain. The best I can see is a combined price index for wired and wireless telephone service in comparison to the cost of cable and satellite services as well as Internet access services.  The figure shows the trend below.

Source: CRTC (2011). Navigating Convergence, p. 65.

Seen from this angle, things look not too bad, at least between 2002 and 2007, when prices were falling below the level of the general consumer price index. The situation reversed after that, however, with the price of wireless services rising relative to the cpi since 2007. Prices have not risen as fast as in cable and satellite subscriptions, but they have not fallen to nearly the extent as they have for Internet access.

We can also look at this relative to seven other countries that can be meaningfully compared with Canada.  As the following figure drawn from the UK regulator, Ofcom, shows, the amount that Canadians pay to their wireless provider each month is at the high end of the scale and always has been throughout the period covered. Also note that prices in every other country surveyed, except Australia, have been falling, while in Canada they’ve been on the rise.

Source: Ofcom (2011). International Communication Monitoring Report, p. 256.

We can also look to the OECD for some guidance.  In terms of wireless broadband access per 100 people, Canada ranks 26th out of 34 countries.  The following chart shows the comparison.

Source:  OECD (2011). Broadband Portal.

Of course, there’s much more that could be said, but just from a cursory glance, all is not right in the wireless kingdom. Of course, many seem to think that opening up foreign investment is the way to go. As I’ve said before, I’m not so sure. Now is not exactly the high-tide of foreign investment in mobile services, at least in the Euro-American economies. And many of those same sources seem to have the US in mind when they hope that big foreign investors will come in to save us from the rapacious grip of Rogers, Bell and Telus. I’m afraid, however, as Susan Crawford, amongst others observe, the US is no better than here, and even more of a basket case on some measures.

The upshot of all this: wireless will likely never be competitive. The CRTC needs to regulate versus oversee an industry-developed code. Lastly, instead of auctioning off all the spectrum, Industry Canada should look to develop an open wireless model.

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