Regulate and stem the crisis of confidence

THIS WEEK'S TOPIC: Should Facebook (and other Big Tech giants) be split up? How (if at all) should they be regulated?

Mike Davie CEO Quadrant

We need to be careful when suggesting new regulations, especially for social media platforms. We need to ensure any regulations that we put in place protect the consumer and doesn't just create walls that reduce competition. Smart regulations should ensure that Facebook users' data are not used for nefarious purposes yet should allow firms to be able to still use that data to do good, innovate and create new products and services.

Being a big company is not a bad thing and we should avoid calling for the breakup of Facebook because we are concerned about its monopoly power. I remember in the early 2000s there was a push to break up Microsoft along product lines due to claims that it was abusing its monopoly power with Internet Explorer. These efforts failed (although some regulations were put in place) and now the only reason people use Internet Explorer is to download Google Chrome or Mozilla. This is mainly due to competition, not government intervention, so we should be pushing more competition above all else.

Allan Tan Managing Partner Ying Communications

The challenge for regulators with Facebook or any social media platform is that knowledge is never evenly distributed: there will always exist the few who know how to use - and game - the platform to their advantage. These include the Kardashians, dictatorships, politicians, activists, Cambridge Analytica, the Myanmar military, communications agencies with the right skills, and Facebook itself.

Breaking up Facebook wouldn't address this root problem. Governments need a two-prong approach: first, make the platform responsible for the content its users put up, ie treat Facebook like a media company. Second, put in place laws that restrict the type of content that people can put up: opinions ok, hate speech not ok. These rules aren't new; we just need to bring Facebook under their ambit.

John Bittleston Founder and Chair Terrific Mentors International Pte Ltd

Splitting up a big business is not as easy as it sounds. Shared services including information is a foundation cost for many. Divided, you double costs and seriously affect the profits of both. Public companies' shareholders will be angry. Internal staff hates it too. Forcing the downsizing of a business is not clever. Thus regulation is all the more important. Free speech is being badly abused. I don't like limiting what people can say but the impact of words is today greater than when I was born. It needs reining in, sensitively, with a careful watch that the regulations don't become a source of abuse.

Jayaprakash Jagateesan Chief Executive Officer RHT Holdings Pte Ltd

The aggregation of social media networks and the emergence of a monopoly in the hands of a single large shareholder leaves a lot to be desired in terms of governance. The concentration of power and influence held by a single shareholder not only lacks checks and balances, but also hinders competition and stifles innovation.

With no significant alternatives for users to switch to, the authorities need to step in to prevent users from being subjected to manipulative practices and malicious exploitation. However, government agencies will need to look beyond 20th century regulatory concepts designed for railroads and oil companies to police the latest technology platforms, products and services.

Naveen Menon President ASEAN Cisco

The debate on companies becoming too big and powerful is not a new one. However, I think we are focusing on the wrong question.

For years, we have been comfortable giving up our personal data in exchange for the right to communicate with our friends and family, or access online services and content. What we did not know, though, is how much of our data was being captured and monetised. As we have seen recently, many companies that took our data did not know what was happening either. That is a huge crisis of confidence.

What we really need is a unified framework in place that safeguards consumer data. This should address three key aspects: transparency, accountability, and empowerment.

Companies need to be transparent about how they use and manage data. That is because data often moves fluidly, not just within an organisation, but across companies and third parties. This is where accountability comes in. Regulators need to ensure that companies not only protect consumer data from any hacks, but also use it ethically. Finally, all stakeholders should work towards empowering individuals to have a say on the use of their data for meaningful transactions and experiences that are consistent with their expectations.

Kostas Anagnostakis Founder, Chief Executive Officer Niometrics

Only 31 per cent of consumers in Asia-Pacific believe that their personal data will be treated in a trustworthy manner by companies that offer digital services. Technology companies, big and small, have contributed to this distrust with the recent slew of data breaches that have compromised users' personal data.

Digital platforms have a responsibility to protect their users' privacy and data, but many have failed to do so. Expecting them to voluntarily regulate themselves has not worked either.

Tapping the knowledge field of privacy engineering, our technology encrypts data from the outset because privacy and security are non-negotiable. We have worked with many digital players to move closer to what customers today demand and require - a balance of data intelligence and insight without compromising their data.

Chris Burton MD, South East Asia Vistra Group

Monopolies are generally subject to challenge where a firm is the sole seller of a product or it has no close substitutes, so that firm can unfairly influence market prices. Facebook is not a monopoly in an economic sense. It is a platform, upon which content and ideas are shared by the hundreds of millions of individual participants. It is not even analogous to a media monopoly (where editorial views can be disproportionate), because it does not broadcast its own opinions. I do not see the point of breaking up the business on that basis. On regulation, I think yes: Facebook should be regulated to ensure it has implemented sufficient controls to prevent misuse by unscrupulous, extremist operators, and manipulators. Regulation should also ensure that decisions it takes to de-platform are sound and even-handed: Facebook should not de-platform participants just because the firm does not subscribe to a particular political opinion. Rather like the regulation of the BBC in the UK, Facebook must be seen as a neutral platform.

Mark Billington Regional Director, Greater China and South-East Asia ICAEW

Facebook's data scandal has brought to light the importance of establishing a set of guiding principles (or regulatory framework) to govern the collection and use of data by companies. While splitting up these Big Tech giants might seem like a straightforward solution, the question of accountability still needs to be addressed upfront. As it stands, the underlying problem stems from a lack of these common guiding principles that can address key ethical issues when dealing with personal data.

It is thus crucial that various stakeholders cooperate more closely before any decision is made on whether to regulate private organisations. Technology companies, regulators, academics, and the public should be constantly engaged and consulted, to ensure that everyone's interests are equally represented. Any regulation that is consequently introduced will then need to strike a fine balance between allowing for freedom of expression and protecting users from harmful content.

Amit Gupta CEO & Founder Ecosystm

There's no doubt that monopolies have helped shape the world as we know it. John D Rockefeller and Standard Oil, for example, were instrumental in industrialising the US by investing in infrastructure - something they could afford only because they were a monopoly. The same could be said of AT&T and telecommunications. And now, Google and Facebook have created Internet monopolies in their respective fields, while developing first-rate new tech.

That said, the world doesn't like monopolies because they represent too much power in one place - a power that is, all too often, abused in the end. It's probably too soon to judge whether there's a case for breaking up these firms, but I have no doubt that strong regulation is called for.

Alban Villani Regional MD, SEA-Pacific Criteo

Diversity and innovation spring from competition. What we don't need is an Internet where each vertical is controlled by a single e-commerce, search or social media operator. We need an open Internet where all players are free of any conflicts of interest and are able to increase the digital ecosystem's scope and diversity. The open Internet currently commands only 30 per cent of digital ad spend despite capturing half of Internet users. The other half are on Big Tech platforms that control large volumes of data, used in closed markets as a guaranteed source of income. Criteo sees an opportunity to level the playing field by supporting the growth of independent operators and making data sharing available for all. The digital sector needs transparency, with a clear distinction between consumer services and the monetisation of these services on the other.

Melissa Ries General Manager, Asia Pacific and Japan TIBCO Software

With the new wave of technology and acceleration of startups across Asia, it is a big task for regulators to manage the rapid growth of such tech startups. Data is the new currency, and regulations and policies can take us only so far. We - as users of such technology - must play a role in ensuring our data is protected. This can prompt tech giants to rethink how they use our data. Transparency is key to this issue, because if we easily understand the terms and there is a consensus with the company, then it gives a fair chance for the user to make the right decision.

Toby Koh Group MD Ademco Security Group

Facebook with its incredible reach needs to be accountable to its users, shareholders, staff and the general public. As we have seen, the power of the Facebook engine to shape and influence opinion is downright frightening. I do not, however, believe in a forced breakup of the company. Every company will go through its cycles of ups and downs. Facebook will not maintain such dominance forever. In the interim period, governments will attempt to hold the Big Tech firms accountable. Laws and regulations have already been mooted and enacted. The real power of data and communications is just beginning and it is my belief that if not Facebook, it will be others. Ownership of data and the monetisation of data is an irreversible trend and may require regulation to police.

There needs to be concerted efforts and thought in every countries and society on how to keep this beast on a leash.

Sheena Chin Country Director VERITAS Storage Singapore

Putting costs aside, dismantling Big Tech giants would not address the underlying causes of dominance. For instance, a particular platform or app will gain popularity when there are more users, resulting in a network effect and economic moat that further fuel its growth. In today's digital economy, tech giants that have the right business models, innovation and technologies will be here to stay. To protect the interests of individuals and consumers, it is worthwhile for the governments across the world to put in place well-defined regulations that could be enforced to minimise the occurrence of data breaches or to counter misinformation.

Stephanie Boo Managing Director - Asia Pacific Menlo Security

Facebook is an immensely powerful platform that has been used for ill as well as good. Breaking it up would be an epochal business event with huge implications. What can be said is that like most websites, Facebook is vulnerable to Web-borne malware. All it takes is for the visitor to click on some contaminated content and a wide range of possible data breaches opens up. Given its reach, Facebook could be hugely influential in educating its users to have better awareness and to practise caution while surfing the Web and sharing information. Positive altruistic action like that would improve the company's image and hopefully reduce the calls for its breakup.

Maren Schweizer Director Schweizer World Pte Ltd

Challenges associated with a digitising economy are playing out on a global scale. The economic potential of global marketplaces, platforms, and communities will require a deeper level of international cooperation.

Therefore I believe regulators shall put their efforts in creating a global standardised policy comparable to eg automotive-related products ISO/TS 16949.

To get there, we require a clear agenda and the joint forces of a small number of countries, a good sense of avoiding complexity triggered by overregulation and a test-and-learn approach to keep up with the pace of innovation. The agenda must include protecting user data from misuse and prevent the spread of fake news, that is a potential threat to our democracies.

History has shown that caravans move on and digital businesses are fast camels, thus social media companies can easily move somewhere else.

I believe stricter application of existing legislation makes more sense than splitting up companies while working towards a midterm global solution.

Arvind Sethumadhavan Chief Strategy and Innovation Officer, APAC Dentsu Aegis Network

Growing distrust around data usage and the influence held by tech giants point to the crisis of confidence that exists in the digital economy today. Our 2019 Digital Society Index reveals consumers are increasingly taking back control of their digital experience as important human and societal needs are failing to be met, despite the widely acknowledged benefits brought by digital technology. Regulation alone will not solve this issue; change must be led proactively to harness digital with human needs placed squarely at the centre. Our data lab in India recently launched DDLCoin built on Blockchain to drive greater transparency in digital marketing. Businesses have an opportunity to turn transparency around data usage into a source of brand differentiation and innovation.

Helen Ng Chief Executive Officer Lock+Store

Breaking up Big Tech companies is regressive. Instead, we should compel tech giants like Facebook to give back even more to the community and impose harsher penalties for its questionable tactics. Research has shown that Big Tech's anti-competitive behaviour has, in some instances, led to lower consumer prices. Through symbiotic relationships with startups, Big Tech has also accelerated disruption cycles. I support introducing a more stringent regulatory framework for Big Tech companies, but not breaking them up.

Henry Tan Group CEO Nexia TS Group

This debate on whether a big domineering organisation should be split up is not new. Many jurisdictions are currently also considering the case for the Big Four accounting firms. However, in the interest of the free economy, business giants should not be split up. There are existing anti-competition provisions in many jurisdictions and these should cover the concerns. Over-regulation will result in entities seeking to circumvent rules by trying to do different ownership structures.

Lim Soon Hock Managing Director PLAN-B ICAG Pte Ltd

No company is above the law, no matter how big or small.

The allegations against Facebook, compromising security and civility for clicks, will not be resolved by breaking up the company. The software that has been abused for improper social gains and unethical or dishonourable political maneuvers and malfeasance must be changed. It is within the power, capabilities and capacity of Facebook - irrespective of whether it exists as a single entity or several - to make.

While breaking up a company is intended to curtail monopoly, it is intended more to level the playing field for competition, and not to solve the abuse of the software and apps that Facebook offers and clearly dominates the market, for unethical, unauthorised and dishonorable objectives.

The law must be strongly enforced to stop Facebook from being abused to change culture, to influence elections or to empower nationalist leaders. Facebook must ensure it protects the privacy of users' personal data.

Kunalan Chakravarthy Chief Executive Priority Consultants

The question of splitting up Facebook or similar social communications platforms is a difficult one as these have become a fixture in our daily lives. Without such social media tools, how will parents keep in touch with their children, grandparents with their grandchildren, and other folks with friends and partners.

Over the years, the advances in technology have not only democratised the access to information but also enabled people to communicate regularly over long distances and different time zones. However, as with any good thing, somebody out there is always looking to exploit gullible, trusting people for nefarious and malicious reasons. How then do we eradicate the negative and only retain the positive? This is the utopian conundrum that governments around the world are attempting to address clumsily with a hatchet and a mallet.

Instead, much like Singapore's well renowned social education campaigns, it requires a multi-level, varied education programme to equip users with the knowledge and the nous to differentiate negative fake news from other benign information. Regulating Facebook or other social platforms is a hatchet approach that is sure to backfire and drive communications deeper underground - especially with the youth of today.

Sudhir Agarwal CEO Everise

With the advent of technological advancements in communication, we now communicate more efficiently online. Therefore, content moderation is an important tool for building brand recognition and trust with your audience, and companies today need to have the necessary processes in place to moderate content. As entrepreneurs continue to scale and grow their companies, it is inevitable that they will start to acquire companies along the way - similar to how we have grown. It is imperative for companies to carry out the due diligence and take into consideration the regulatory frameworks and customer data privacy policies with new market entries.

David Leong Managing Director PeopleWorldwide Consulting Pte Ltd

In 1911, the US Supreme Court ruled, in a landmark case, that a Big Oil company was an illegal monopoly and dismantled it into 34 smaller companies. Standard Oil Co Inc was an American oil producing, transporting, refining and marketing company and monopoly and was accused of using aggressive pricing to destroy competitors. Today's Big Tech giant, Facebook, is not very different.

When the monolithic giant threatens competition and has unfair advantages and access to audiences, as well as unchecked power, there must be oversight. With unfettered power that may supersede the government's, the giant must be dismantled. With full access to and control over individuals' privacy and information around communication trails, habits, buying and consumption patterns, music and video preferences, this private-sector ''Big Brother'' can rule the world. Governments are country-bound in power but Facebook is ubiquitous and global.

The Big Tech giants must certainly be regulated.

Zaheer K Merchant Regional Director (Singapore & Europe) QI Group of Companies

In my mind, I am clear Facebook must be split up. Facebook fears little. Its control over messaging, communication, connectivity and data collection means it fears only regulatory control of the nature governments can impose; antitrust elements and accountability which they deny yet purport to mitigate. Even leaving aside the control and influence that Facebook wields or the proliferation of fake news or other acts propagated across all its platforms. It would be rational to break up Facebook since it has comprehensively hurt competition by buyouts and replication. Like how AT&T was broken up by law in 1974, Facebook can be split into different entities with different services. Measures to avoid competition and cross sharing of services, servers or platforms can be implemented, along with proper guidelines, management and control. Measured oversight and regulation will make for far better and safer tech development in today's world.

Leonard Cheong Managing Director AdNovum Singapore

Breaking up the Big Tech giants will have an immediate impact on many integrated online offerings that consumers are dependent on. This can be seen in how demand for their products has remained strong, despite the unhappiness with the Big Tech giants - this has contributed to the achievements and behavior of these tech companies today. Rather than break them up, governments and lawmakers around the world need to come together to bone up on how these tech giants operate and behave, in the spirit of:

- preventing monopoly;

- promoting fair competition and innovation;

- protecting consumers and citizens;

- ensuring trust in the digital world.

Annie Yap CEO AYP HR Group

Mark Zuckerberg and Facebook have responded that breaking up the company isn't going to help and that it's only by passing new rules for the Internet can the problems be solved. I agree with their stand.

Splitting up any of the Big Tech giants will not make posted content any more gracious or accountable. It's the users who need to be educated because their actions have a big impact on how the Internet is being perceived.

Governments need to make the first move to review and enforce stricter regulation on the Big Tech giants while they continue to identify and stop the spread of fake, racist and other harmful content.