Billionaire investor George Soros says social media companies, particularly Facebook and Google, are becoming “obstacles to innovation” as they have become too powerful and should be broken up.
While often playing an “innovative and liberating role,” the companies are deceiving users “by manipulating their attention” and “deliberately engineering addiction” to their services, Soros wrote on opinion website Project Syndicate.
According to him, the two firms profit from making users stay on their websites for long periods of time. Due to the size of the companies, content providers have to “accept whatever terms they are offered,”but that is only helping Facebook and Google become more profitable.
“Indeed, the exceptional profitability of these companies is largely a function of their avoiding responsibility – and payment – for the content on their platforms,” Soros wrote.
“The companies claim that they are merely distributing information. But the fact that they are near-monopoly distributors makes them public utilities and should subject them to more stringent regulation, aimed at preserving competition, innovation and fair and open access.”
Soros added that as Facebook and Google grow, they are looking to bundle more services to offer to consumers. They “exploit the data they control” and use “discriminatory pricing” to do this, he explained.
“There is a similarity between Internet platforms and gambling companies. Casinos have developed techniques to hook customers to the point that they gamble away all of their money, even money they don’t have.”
Social media companies are “inducing people to surrender their autonomy” with the power to shape people’s attention “concentrated in the hands of a few companies.”
The investor warned these “data-rich IT monopolies” could form an alliance with authoritarian states that “may well result in a web of totalitarian control the likes of which not even George Orwell could have imagined.”
He said this could happen in Russia and China first, adding that EU regulators are more “farsighted” than those in the US when it comes to social policies.