Silicon Valley Doesn’t Want the U.S. to Get Too Hasty About Regulation

Opponents of government regulation have a few standard refrains. For years, one of the most common has been that public officials shouldn’t pick winners and losers, meaning they shouldn’t use state power to reward favored companies or industries and punish others. In good faith, the line articulates a reasonable concern about facilitating corruption and choking off competition. It tends, however, to be deployed by complainants who were perfectly comfortable being among the winners until they suddenly drew greater scrutiny. Frequent foes of winner- and loser-picking include oil and gas companies, health insurers, megabanks, and now Silicon Valley’s biggest internet companies, which are starting to face consequences for frequent breaches of their eyebrow-raisingly massive data hoards.

After two years under a much harsher spotlight than they were used to, the internet companies acknowledge that some sort of new oversight is due. But, they say, let’s not get carried away here and change the ways the Valley does business. The government must avoid “picking winners or losers,” says Michael Beckerman, chief executive officer of the Internet Association, a Washington lobbying group representing Facebook, Google, Twitter, and most other major tech platforms. It’s wrong, he says, for lawmakers to punish his clients for mining data for profit, because pretty much every consumer-facing company now makes money from data in one way or another. “If you compare Facebook or Twitter to a car rental agency or your grocery store, or a data broker or a credit-reporting agency, our companies are a lot more transparent,” he says.