Courts Are Quietly Taking Over the Internet
Who do you think decides what you see and how you interact on your favorite online service? Most would point to Silicon Valley engineers and product managers tinkering behind the scenes. However, an underappreciated reality is emerging: judges and regulators are increasingly the ones who decide how online platforms operate. The blueprint for tomorrow’s internet is being drawn up in courtrooms and government offices. This should concern us all.
Today’s leading tech platforms were initially shaped by market forces. Governments did not tell Google to display blue links, Apple to invent the App Store, or Amazon to introduce the “Buy Box.” But legal battles and regulations are now redefining how platforms are built and run. This includes deciding how firms can monetize their services, how they display content to users, and which features can be rolled into a single service.
Litigation brought by Epic Games may force Apple to allow in-app links to outside payment systems, and effectively reduce its App Store fees to $0. This is not the consumer win many believe it to be, as it would undo the closed—but safe and easy to use—business model that made Apple’s iOS into the leading ecosystem it is today.Â
Apple isn’t alone. If upheld on appeal, a U.S. District Court ruling would prevent Google from paying to be the default search engine on iPhones and browsers. The most direct consequence of this would be to make smartphones more costly, because these deals subsidize handset prices. The viability of the Android operating system and the Chrome browser could also be at stake as a result of the suit.
Analogous cases are also being brought against Meta and Amazon. Meta might have to sell its Instagram and WhatsApp services, despite the benefits users derive from their integration (not least in terms of better and less intrusive ads). Amazon may be forced to further open its logistics network, while dismantling its Prime service, both of which contribute to a reliable, cheap, and
Article from Reason.com
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