April 12, 2025
The stock markets roiled by Donald Trump’s tariff yo-yo vaporized a lot of personal savings (ouch), but especially if you held Big Tech stock. Or owned the company.
Alas, shed a tear for Zuckerberg, Bezos, Musk and the bros. It must be a weird space to be in: grovelling before Trump in the hopes of an unimpeded path to worldwide AI “dominance,” losing billions in share value on any given day of the week and fending off federal anti-trust lawsuits.
The Washington Post has a good story on this.
The US Federal Trade Commission’s anti-trust suit against Zuckerberg’s Meta starts at the trial level on Monday and is expected to go day to day through July. The government is challenging the Facebook-WhatsApp-Instagram business as an anti-competitive monopoly in “personal social networking services.”
Matt Stoller will be covering the trial in his Big Tech on Trial Substack.
Here’s the kernel of his analysis from his opening post describing the legal battle to define “the relevant market” that is allegedly manipulated by Meta market power:
As the politics play out, the FTC’s litigation team has its work cut out for it on showing monopoly power.
To win its case, the FTC must prove that Meta has a monopoly in a relevant market, and that its acquisitions of Instagram and WhatsApp helped Meta maintain that monopoly through something other than competition on the merits.
The FTC can show monopoly power with direct evidence, like the ability to profitably raise prices or diminish quality. But because Meta does not charge consumers money for its services, it’s difficult to show the classic direct evidence of a price increase. Even so, the FTC has introduced evidence that Meta can engage in price discrimination, one sign of market power, by increasing the number of ads shown to users who have greater demand for social networking. In any event, the FTC will likely rely on indirect evidence of Meta’s market power: high market share plus the existence of barriers to entry that prevent others from whittling away at Meta’s share.
Underpinning whether Meta has a monopoly is the threshold question of how to define the “relevant market” in which it has that power. The relevant market for assessing competition is twofold: a product market and a geographic market. The FTC proposes that Meta is a monopolist in a market for “Personal Social Networking Services” (we’ll call it the “PSN market”) in the United States, which is distinguished by a social purpose: a way to connect with family and friends. Inside that market are Facebook, Instagram, Snapchat, and MeWe. Meta, for its part, disputes that definition and points to other apps that it says it competes with, like LinkedIn, Reddit, and YouTube. The bigger that Meta can make the relevant market, the smaller Meta’s market share in that market, and the more likely it is to defeat the FTC’s case.
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After keeping his head down on the merits of Chrystia Freeland’s Digital Services Tax on big tech operations in Canada, CPC leader Pierre Poilievre has offered his muted endorsement, tax or no.
“The principle is a fair idea,” he told reporters on the campaign trail. “It’s that these businesses earn revenue here in Canada, so the principle is that they should contribute where they earn the revenue. So I think, on this question, we should keep it in place.”
The Conservatives endorsed the DST in their 2021 election platform at the rate of 3% of Canadian operating revenues, the same amount adopted by the Liberals last year.
The Liberals in 2021 promised a “minimum global corporate tax.” It was successfully negotiated with the US Biden administration but blocked in US Congress and repudiated by the Trump administration. The fallback DST of 3% was implemented instead.
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There’s an industry buzz created by Netflix about its launch of Red Marrow Media’s North of North, the drama-comedy series shot in Iqaluit and premiered on CBC and APTN.
That’s interesting for many reasons.
Because of federal regulations, the Canadian independent producers who made the series retain the intellectual property in the show, including the global streaming rights they licensed to Netflix which was a major pre-production investor.
That in itself is hardly unprecedented and neither is it surprising that Netflix is making a big deal of its investment and licensing deal because of the ongoing battle over its obligations to broadcast Canadian content.
What’s more noteworthy is the reporting that the production infrastructure costs of shooting in the high north were so steep that CBC, APTN and Red Marrow —the recipient of all manner of tax and broadcaster subsidies to make the series —— needed a deep pocketed foreign streaming partner to make a show with high on-screen production values and an authentic locale (as opposed to shooting in Sudbury).
It’s a reminder that our television subsidy regime feeds shows that are a million dollars per episode, not five million like American hits.
The CBC is by far the biggest spender on Canadian dramas and comedies at $195 million per year (Bell is second at $93 million) but it still has to spread that cash far enough to cover several series each season in different regions of the country, as viewers and taxpayers expect.
Speaking of the CBC, I’ve got an analysis of the defund v. defend debate coming out next week on the Institute for Research on Public Policy’s website Policy Options.
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For those of you who wanted to know when the CRTC would reschedule its public consultation on radio and audio streaming, it’s September 18th.
The video and television hearing kicks off on May 14. The consultation on “market dynamics and sustainability” (the gatekeeping of content distribution) begins June 18.
The three-day court date for the streamers’ legal challenge to the CRTC’s five per cent levies benefiting Canadian media funds is set for June 9.
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The possibility of a merger between Montréal’s LaPresse and the six financially vulnerable “CN2i” Québec news outlets is off.
The LaPresse offer to CN2i staff, which reports imply required an unpalatable number layoffs, was blocked at the last minute and LaPresse informed its own employees that merger discussions were at an end.
With LaPresse out of the picture, Pierre-Karl Pélédeau’s Québecor appears to be poised to make its own merger offer to CN2i. The media-telco conglomerate Québecor owns daily tabloids in Montréal and Québec City as well as the TVA television network and Vidéotron cable.
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It’s always important to media policy to keep an eye on long-term audience trends, especially in news programming.
ThinkTV is the media marketing group that regularly pumps out polling numbers to remind advertisers where the customers are watching, listening or reading.
Its latest report affirms that television and radio continue to hold their own as the top and third most popular media respectively for national news. The way the polling chart is laid out, you can see that mainstream media is vested in video, audio and text, online or otherwise:
On the same note, American media whiz Evan Shapiro has a new post where he suggests that local news is in high demand regardless of age cohort, although he sees a watershed between GenZ/Millenials and GenX/boomers in terms of platform preferences.
The task is for local TV and radio news operators is to fish for the younger generations where they swim.
None of this is breaking news, but it’s Shapiro’s chart that caught my attention. Check out the age statistics on this one (keeping in mind it’s the American market):
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And lastly, I recommend Ken Whyte’s latest blog post on book publishing and the trade war. This quote stayed with me:
Search ‘books and tariffs’ on Google and you’ll find a bunch of articles in which booksellers and librarians are begging to dodge the draft into Buy Canada. Frankly admitting that they depend overwhelmingly on US product, they’re asking Ottawa to exempt American books from Canada’s slate of retaliatory tariffs. Otherwise costs will rise, customers will be unhappy, business will suffer. We’ve locked arms with Danielle Smith.
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This blog post is copyrighted by Howard Law, all rights reserved. 2025.
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