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fintech| fintechauthorTomio GeronNoneGet access to the Protocol | Fintech newsletter, research, news alerts and events.f6ea366a38
February 18, 2021
Robinhood CEO Vlad Tenev appeared before Congress on Thursday to defend the company against accusations that Robinhood hurt retail investors by preventing them from selling shares and encouraging risky behavior as part of the GameStop stock trading drama.
Tenev appeared along with others, including Reddit CEO Steve Huffman, Citadel's Ken Griffin, Melvin Capital's Gabe Plotkin, and Keith Gill, who uses the handle "Roaring Kitty" on YouTube. While Tenev didn't answer all the questions that lawmakers posed, he had one big accomplishment: He didn't have any of the major gaffes that have plagued him in previous interviews.
"I'm sorry and I apologize," he said. "We are doing everything we can to make sure this doesn't happen again … Robinhood owns what happened, certainly, and we need to make sure it doesn't happen again. Robinhood Securities had limited options with how to address this."
Legislators pushed Tenev about the liquidity that Robinhood had on hand during the crisis when it stopped the buying of GameStop and other stocks. Tenev said that the company did not have a liquidity problem and raised $3.4 billion as a "cushion" and to ensure against another "black swan" event. "We met all of our regulatory capital requirements," he said.
But when pressed by Rep. Anthony Gonzalez as to whether Robinhood had $3 billion required by its clearinghouse early on the morning of Jan. 28, Tenev said, "At that moment we would not be able to post $3 billion in collateral."
Legislators also argued that Robinhood did not adequately prepare for the collateral problem. Tenev said the GameStop crisis had a probability of happening once in 3.5 million times.
One of the main areas of interest for lawmakers was payment for order flow, the system that Robinhood uses to generate revenue. Tenev acknowledged that more than half of Robinhood's revenue comes from payment for order flow.
Citadel Securities' Ken Griffin was pressed by Rep. Brad Sherman on whether it gives worse prices for Robinhood compared to other brokerages — so that, for example, paying for order flow gets worse price execution.
When asked by Sherman whether the same sized order for a stock coming from two different brokerages, such as Robinhood versus Fidelity, would get the same price, Griffin didn't directly answer the question. "The quality of the execution varies by the channel of the order," Griffin said.
"If you're going to filibuster, you should run for the Senate," Sherman replied.
Some legislators called for more transparency with short selling. Rep. Nydia Velázquez asked about the lack of requirements for hedge funds to disclose short positions, as they must do for long positions. Some legislators also criticized Robinhood for not providing more disclosure about why it restricts trading in certain stocks.
Lawmakers raised the issues with settlement of trades, and some called for steps to move towards real-time settlement of trades. Tenev said that real-time settlement would have prevented many of the problems that Robinhood faced, since it wouldn't have required as much collateral.
Retail investors also need more protections, lawmakers argued. Some pointed to what they called gamification, such as confetti design features, within Robinhood's app that encourages risky bets. Tenev said that Robinhood doesn't engage in gamification.
"Giving people what they want in a responsible way is what Robinhood is about," Tenev said. "We don't consider that gamification. We know that investing is serious."
Republicans on the committee argued in the hearing for fewer regulations or against more regulation in financial markets. They said that more regulation would not have prevented the problems that happened with GameStop. "Piling on more regulation only increases complexity," said Barry Loudermilk, a Republican from Georgia..
The ranking Republican on the committee, Patrick McHenry from North Carolina, argued for reducing regulation: advocating for lowering requirements for retail investors to invest in private startup companies, which are currently restricted to accredited investors. "Policies like the accredited investor definition blatantly pick winners and losers," he said.
Some lawmakers called for a financial transaction tax on stock trades. Rep. Rashida Talib argued that a majority of Americans support such a tax and that such a tax on the Hong Kong Exchange did not hurt that exchange.
Tomio Geron
Tomio Geron ( @tomiogeron) is a San Francisco-based reporter covering fintech. He was previously a reporter and editor at The Wall Street Journal, covering venture capital and startups. Before that, he worked as a staff writer at Forbes, covering social media and venture capital, and also edited the Midas List of top tech investors. He has also worked at newspapers covering crime, courts, health and other topics. He can be reached at tgeron@protocol.com or tgeron@protonmail.com.
Power
Google wants to help you get a life
Digital car windows, curved AR glasses, automatic presentations and other patents from Big Tech.
A new patent from Google offers a few suggestions.
Image: USPTO
February 28, 2021
Mike Murphy ( @mcwm) is the director of special projects at Protocol, focusing on the industries being rapidly upended by technology and the companies disrupting incumbents. Previously, Mike was the technology editor at Quartz, where he frequently wrote on robotics, artificial intelligence, and consumer electronics.
February 28, 2021
Another week has come to pass, meaning it's time again for Big Tech patents! You've hopefully been busy reading all the new Manual Series stories that have come out this week and are now looking forward to hearing what comes after what comes next. Google wants to get rid of your double-chin selfie videos and find things for you as you sit bored at home; Apple wants to bring translucent displays to car windows; and Microsoft is exploring how much you can stress out a virtual assistant.
And remember: The big tech companies file all kinds of crazy patents for things, and though most never amount to anything, some end up defining the future.
<h3>Alphabet</h3><p><a href="https://pdfpiw.uspto.gov/.piw?PageNum=0&docid=10929982&IDKey=D2992D61B62A%0D%0A&HomeUrl=http%3A%2F%2Fpatft.uspto.gov%2Fnetacgi%2Fnph-Parser%3FSect1%3DPTO2%2526Sect2%3DHITOFF%2526p%3D1%2526u%3D%25252Fnetahtml%25252FPTO%25252Fsearch-bool.html%2526r%3D13%2526f%3DG%2526l%3D50%2526co1%3DAND%2526d%3DPTXT%2526s1%3Dgoogle.ASNM.%2526OS%3DAN%2Fgoogle%2526RS%3DAN%2Fgoogle" rel="noopener noreferrer" target="_blank"><strong>Making selfies look better</strong></a></p><p>Perhaps even before our lives were dominated by video calls, you might've noticed when someone just couldn't figure out where to place their camera. Generally, anything below eye height is going to lead to some unflattering angles, but if you're also on a phone, holding your device up that long can get tiring. Google is apparently trying to solve this with AR: According to this patent, it's looking into using the depth sensors found on the front of many smartphones to re-create your face in video calls at a more flattering angle, to reduce what the pattern calls "the big nose effect." I'm here for this concept, but also Google's depiction of what it's trying to eliminate:</p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="1">
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</div></p><p><img src="https://lh5.googleusercontent.com/lYYEYZ52NjuL8M2BnrKVI80huN6UBNYEl1sFEScg5s5MdKrv8n2pBlI3tqXw3ooNJh8h2fWLTeTQaI4TrETMRu-E8ld49QGy3U783TOD8k8WMIR0lPZBAlCih9p3NU4U2sOEqtuI"></p><p><a href="https://pdfpiw.uspto.gov/.piw?PageNum=0&docid=10929885&IDKey=AFA7541891BF%0D%0A&HomeUrl=http%3A%2F%2Fpatft.uspto.gov%2Fnetacgi%2Fnph-Parser%3FSect1%3DPTO2%2526Sect2%3DHITOFF%2526p%3D1%2526u%3D%25252Fnetahtml%25252FPTO%25252Fsearch-bool.html%2526r%3D16%2526f%3DG%2526l%3D50%2526co1%3DAND%2526d%3DPTXT%2526s1%3Dgoogle.ASNM.%2526OS%3DAN%2Fgoogle%2526RS%3DAN%2Fgoogle" target="_blank"><strong>Jamming more ads into Maps</strong></a></p><p>Google Maps has become increasingly beset with ads in recent years, with promoted pins and locations on various instances of Maps. But this patent, which determines how Google goes about valuing ads in Google Maps — it, shockingly, has a lot to do with location — shows that the company might be looking at turning every part of the world into a digital version of Times Square, by displaying ads in-between the streets on a map. Hopefully it doesn't feel the need to run ads in <em>all</em> these potential slots at once, as that might make it rather difficult to navigate: </p><p><img src="https://lh6.googleusercontent.com/JcWTDCLxLAIEnhwl__JCNqeGm5ivedVoZVx_t83zGUntlZdU2H3CeQm9L3RC7QEZ_Cbb1n8B-bq_B-UJoATR2JiehxRwlA_O9GgO2BcEsph9C2cMPihvsdIWJlG9iJfvo4hTmLG9"></p><p><a href="https://pdfpiw.uspto.gov/.piw?PageNum=0&docid=10929486&IDKey=8946337F7961%0D%0A&HomeUrl=http%3A%2F%2Fpatft.uspto.gov%2Fnetacgi%2Fnph-Parser%3FSect1%3DPTO2%2526Sect2%3DHITOFF%2526p%3D1%2526u%3D%25252Fnetahtml%25252FPTO%25252Fsearch-bool.html%2526r%3D23%2526f%3DG%2526l%3D50%2526co1%3DAND%2526d%3DPTXT%2526s1%3Dgoogle.ASNM.%2526OS%3DAN%2Fgoogle%2526RS%3DAN%2Fgoogle" target="_blank"><strong>Outsourcing having a life to AI</strong></a></p><p>It's tough to do things, I know. Many days, even before the pandemic, I was content to just sit on the couch all day watching TV and ordering takeout. But Google is apparently looking into outsourcing to a virtual assistant the task of making sure you actually get your butt off the sofa. The patent outlines an assistant that could suggest things to do, as well as where and when to do them, based on the user's preferences. It could also suggest things to do that your friends or other users have enjoyed doing. Some of the suggestions aren't exactly things I'd consider a hobby, though: choosing "fight off a cold" as an activity is a really odd way to want to pass the time. <img src="https://lh4.googleusercontent.com/uHktu_DhtqRY9P68bJLJeoFceXUWTrtEeTN7xB6hiBFWxiCY5FDqrZW0zGkqlssZ481nmrNba9nGYXrsdfEk0eTsG64QXV37qaAfQ51BYGhs5DlwKuNJiA2WI5uGtQaLcOS_INsS"></p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="2">
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</div></p><h3>Amazon</h3><p><a href="http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=27&f=G&l=50&co1=AND&d=PTXT&s1=amazon.ASNM.&OS=AN/amazon&RS=AN/amazon" target="_blank"><strong>Searching using loyalty programs</strong></a></p><p>When you search for things online, you're generally only shown the prices for things that everyone sees. But if you're a member of a loyalty program, you might often get discounts or other benefits that could make some products cheaper or more attractive. Amazon's patent outlines a search engine that can store which loyalty programs you're a part of, and show any deals associated with that membership that businesses might be running. This could be useful for finding deals at partners of loyalty programs that you might not be aware of, but if you're already loyal to one hotel or airline brand, you're probably going to search them first before doing a general search. </p><p><img src="https://lh3.googleusercontent.com/XSeV507IoB60vuP-AKADzUQH3OCfoDarf4Ahdgo0kNH-YxVe6qj-MRv9dfGECwElzPftQ3dJfMBeJq5fEEaqcAR6cyprVeBF99cienf2ipJGV35gR5LrTL8RVSOqAHqtqKrMX6Et"></p><p><a href="https://pdfpiw.uspto.gov/.piw?PageNum=0&docid=10929810&IDKey=0F7C251F2619%0D%0A&HomeUrl=http%3A%2F%2Fpatft.uspto.gov%2Fnetacgi%2Fnph-Parser%3FSect1%3DPTO2%2526Sect2%3DHITOFF%2526p%3D1%2526u%3D%25252Fnetahtml%25252FPTO%25252Fsearch-bool.html%2526r%3D23%2526f%3DG%2526l%3D50%2526co1%3DAND%2526d%3DPTXT%2526s1%3Damazon.ASNM.%2526OS%3DAN%2Famazon%2526RS%3DAN%2Famazon" target="_blank"><strong>Indoor drones</strong></a></p><p>Amazon has been making waves for years about using autonomous drones for delivering orders, but to date, it hasn't gotten much traction. It seems, according to this patent, to be turning its attention at least partly to a less-regulated bit of airspace: indoors. The patent explains how autonomous drones, fitted with cameras and sensors, could be used to inspect inventory stored in the bins in the company's massive, high-ceilinged warehouses. </p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="3">
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</div></p><h3>Apple</h3><p><a href="https://pdfpiw.uspto.gov/.piw?PageNum=0&docid=10928697&IDKey=B939F26801A6%0D%0A&HomeUrl=http%3A%2F%2Fpatft.uspto.gov%2Fnetacgi%2Fnph-Parser%3FSect1%3DPTO2%2526Sect2%3DHITOFF%2526u%3D%25252Fnetahtml%25252FPTO%25252Fsearch-adv.htm%2526r%3D51%2526f%3DG%2526l%3D50%2526d%3DPTXT%2526s1%3D%252522apple%252Binc%252522.ASNM.%2526p%3D2%2526OS%3DAN%2F%252522apple%252Binc%252522%2526RS%3DAN%2F%252522apple%252Binc%252522" target="_blank"><strong>Smart tinted windows</strong></a></p><p>This feels like a concept you'd see in sci-fi films set in a future where people have time to kill in the back of a self-driving car. Instead of staring at their phones, the sunroof and windows tint black, and news programs or views of scenic landscapes would replace whatever dystopian cityscape the car is driving through. It seems that Apple is looking into turning this into a reality, by creating see-through glass panes embedded with LEDs and other light sources that could change the color of the glass and allow information to be displayed on it. Pair that with the AR maps it was working on from <a href="https://www.protocol.com/alphabet-eat-balloons" target="_self">last week</a>, and you could have a whole new way of looking at driving on your hands. </p><h3>Facebook</h3><p><a href="http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=29&f=G&l=50&co1=AND&d=PTXT&s1=facebook.ASNM.&OS=AN/facebook&RS=AN/facebook" rel="noopener noreferrer" target="_blank"><strong>Curved-lens AR glasses</strong></a></p><p>This feels a little bit like the walking-around version to Apple's patent above. Most AR headsets use cameras to portray information on flat surfaces in front of your eyes. If you're like me and wear giant glasses that make you look like an owl, that might be fine, as your entire field of view is covered by lenses, but this patent explores adding AR to the periphery as well. The glasses in the patent have lenses that curve around the side of the frames so that they can overlay information on your peripheral view, which could make the experience of augmenting reality feel a little less jarring. That said, you would have to go out in public wearing something that looks like this: </p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="4">
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</div></p><p><img src="https://lh6.googleusercontent.com/YQudRSE9rpgmW6sFYiOU7-fK_tijuGQMxUhPKBq9cQWjmapgqPuV-K2FKAb-C_mlGqBmzOeFisYN3K2JLXqjzmvJzsHuEwfPo-_-CiIodnZg-alfFF1wsw74xVkb5nNaTx-pU71_"></p><h3>Microsoft</h3><p><a href="http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=36&f=G&l=50&co1=AND&d=PTXT&s1=microsoft.ASNM.&OS=AN/microsoft&RS=AN/microsoft" target="_blank"><strong>Automatic presentation controls</strong></a></p><p>If you've ever watched a presentation from a major tech company and wondered how they nailed the timing on slide changes so well … it's probably because they've rehearsed it a thousand times and have someone whose job it is just to press forward on the slide at the right time. But if you don't have that luxury at your disposal, you might find the ideas in this patent helpful. Microsoft is exploring presentation software that would be able to listen for cues in your speech to detect that you've gotten to the end of one slide, and move you automatically on to the next. It also suggests doing a training run, where the user runs through their presentation, manually clicking where they want to change slides, and the system would record that and do it automatically when they go to present. I'm not sure about having to have something listen to me at all times to get this to work, but it'd make presentations a lot less awkward than the "please can you click to the next slide, no, not the last slide, the next one" that often happens. </p><p><a href="https://pdfpiw.uspto.gov/.piw?PageNum=0&docid=10931607&IDKey=7B2CDAAF4E95%0D%0A&HomeUrl=http%3A%2F%2Fpatft.uspto.gov%2Fnetacgi%2Fnph-Parser%3FSect1%3DPTO2%2526Sect2%3DHITOFF%2526p%3D1%2526u%3D%25252Fnetahtml%25252FPTO%25252Fsearch-bool.html%2526r%3D19%2526f%3DG%2526l%3D50%2526co1%3DAND%2526d%3DPTXT%2526s1%3Dmicrosoft.ASNM.%2526OS%3DAN%2Fmicrosoft%2526RS%3DAN%2Fmicrosoft" rel="noopener noreferrer" target="_blank"><strong>Getting angry at virtual assistants to get results</strong></a></p><p>Stressing other people out when you're in charge is a very easy, albeit not very amenable, way to get stuff done. If you're having a conversation with someone and they stress to you, "I <em>need</em> you to get this back to me by end of day," and you know that they are ultimately the person who could end your employment, you're very likely going to get it back to them soon, unless you don't want to work there anymore. It's a lot harder to convey emotion and stress like that to a digital assistant, but this patent is exploring being able to understand human intonation and emotion in requests, such as a user stressing that they need to get a meeting scheduled with someone by the end of the week, which the AI would interpret as it being an urgent meeting when looking for time to schedule. Hopefully when the robot uprising comes, they'll not be too annoyed at us taking them for granted as digital PAs. </p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="5">
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Mike Murphy ( @mcwm) is the director of special projects at Protocol, focusing on the industries being rapidly upended by technology and the companies disrupting incumbents. Previously, Mike was the technology editor at Quartz, where he frequently wrote on robotics, artificial intelligence, and consumer electronics.
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The future of computing at the edge: an interview with Intel’s Tom Lantzsch
An interview with Tom Lantzsch, SVP and GM, Internet of Things Group at Intel
February 28, 2021
Saul Hudson has a deep knowledge of creating brand voice identity, especially in understanding and targeting messages in cutting-edge technologies. He enjoys commissioning, editing, writing, and business development, in helping companies to build passionate audiences and accelerate their growth. Hudson has reported from more than 30 countries, from war zones to boardrooms to presidential palaces. He has led multinational, multi-lingual teams and managed operations for hundreds of journalists. Hudson is a Managing Partner at Angle42, a strategic communications consultancy.
February 27, 2021
An interview with Tom Lantzsch
Senior Vice President and General Manager of the Internet of Things Group (IoT) at Intel Corporation
Edge computing had been on the rise in the last 18 months – and accelerated amid the need for new applications to solve challenges created by the Covid-19 pandemic. Tom Lantzsch, Senior Vice President and General Manager of the Internet of Things Group (IoT) at Intel Corp., thinks there are more innovations to come – and wants technology leaders to think equally about data and the algorithms as critical differentiators.
In his role at Intel, Lantzsch leads the worldwide group of solutions architects across IoT market segments, including retail, banking, hospitality, education, industrial, transportation, smart cities and healthcare. And he's seen first-hand how artificial intelligence run at the edge can have a big impact on customers' success.
Protocol sat down with Lantzsch to talk about the challenges faced by companies seeking to move from the cloud to the edge; some of the surprising ways that Intel has found to help customers and the next big breakthrough in this space.
What are the biggest trends you are seeing with edge computing and IoT?
A few years ago, there was a notion that the edge was going to be a simplistic model, where we were going to have everything connected up into the cloud and all the compute was going to happen in the cloud. At Intel, we had a bit of a contrarian view. We thought much of the interesting compute was going to happen closer to where data was created. And we believed, at that time, that camera technology was going to be the driving force – that just the sheer amount of content that was created would be overwhelming to ship to the cloud – so we'd have to do compute at the edge. A few years later – that hypothesis is in action and we're seeing edge compute happen in a big way.
<p>The last 18 months have been a wild time to be in technology. We've seen edge compute come to life to help businesses adapt during the pandemic. At the same time, we are also seeing how 5G is going to drive up interest, especially from a networking perspective, rather than a use-case perspective. We also see lot of people that are focused on their data, but the <em>algorithms</em> that companies train with the data are going to be their critical assets. It doesn't matter what company or what industry; <em>this</em> will really become the differentiator for many companies.</p><p>And particularly amid the backdrop of the pandemic, we've seen how companies are using technology to either bring workers back in safely or <a href="https://www.intel.com/content/www/us/en/corporate-responsibility/covid-19-response-sensormatic-article.html" target="_blank">serve their customers in new ways</a>, <a href="https://www.intel.com/content/www/us/en/customer-spotlight/stories/brentwood-academy-customer-spotlight.html" rel="noopener noreferrer" target="_blank">educate children in new ways</a> -- all things that have accelerated the digital transformation that had been underway. I recently read a <a href="https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever" rel="noopener noreferrer" target="_blank">McKinsey survey</a> that reported on the "speedup in creating digital or digitally enhanced offerings. Across regions, the results suggest a seven-year increase, on average, in the rate at which companies are developing these products and services."</p><p>And based on what we're seeing at Intel, those are lifesaving and industry saving investments happening today – completely re-designing the way that <a href="https://www.intel.com/content/www/us/en/corporate-responsibility/covid-19-response-mic-article.html" rel="noopener noreferrer" target="_blank">patients are treated</a>, and businesses operate.</p><h4>What are you particularly expecting to see this year?</h4><p>What I find most interesting is the work that combines IoT with networking capabilities – and I think this is going to be a year of expansive exploration and working with our customers to put these two things together to solve real business challenges.</p><p>When we first started the integration of networking technology and operational technology capabilities and layered that across the industry verticals, we could count the amount of interested customers and opportunities on one hand. Last year, it was five times that many and this year we see that number increasing significantly already. So, we're excited to see the industry continue to build excitement to scale those types of deployments.</p><h4>What role does AI play at the edge and in what way is Intel involved?</h4><p>An AI use case recently grabbed my attention: employees in a restaurant being screened by a device that checks temperature while the employees are washing their hands – and provides a determination on whether they'd done it adequately before they report to work. I have seen other applications using similar technology in the <a href="https://marketplace.intel.com/s/offering/a5b3b000000TiMSAA0/using-ai-to-make-construction-site-safer?language=en_US" rel="noopener noreferrer" target="_blank">construction industry</a>, where an AI algorithm scans to see if employees have their helmet, goggles, vest and other safety equipment on properly to determine if they are ready to work. And the best part is – that the employer can see aggregate data on these interactions to determine if more training on handwashing or helmet wearing is needed.</p><p>At Intel, in addition to providing the fundamental base technology to enable these applications, we work with a lot of third-party developers to create these applications. And we help the developers scale them across multiple industries with our salesforce. So, we may not make the scan technology that determines if you have the right gear on, but we orchestrate that coordination across our ecosystem with all of our partners to effectively put it into a <a href="https://marketplace.intel.com/s/?language=en_US" rel="noopener noreferrer" target="_blank">catalog</a> so that if customers are interested in that sort of application, we can provide them with different parties to make that happen.</p><h4>Is there a problem with fragmentation in the market and how can that be solved?</h4><p>It's very fragmented. I gave just two examples of totally different workers coming to work in different industries and I can give you five more that are different again. Although the base technology that Intel creates to enable this type of innovation is very horizontal in nature, the reality is that bringing those to life must be very "vertically-centered" and very "use-case centered" – and must take into account, geography. The two employee use cases I cited look very different if you are talking about employees in North America, India or Germany. So, all in all, this is a holistic ecosystem challenge – and an ecosystem solution.</p><p>At Intel, we're in a unique situation to orchestrate these solutions. </p><p><cite class="pull-quote">People tend to think of Intel as providing the technical footprint that enables edge computing – but we also have the developer reach – and we can use our ecosystem and scale to help our end customers get access to the best solutions.</cite></p><h4>What sort of challenges do customers face when they're attempting to adopt edge computing?</h4><p>There are two common challenges. One is the technical question of 'Who can I work with?' A customer may have a chip focus but actually, it's a more complex question than a chip. We like that complexity, because we can be an adviser to them and <a href="https://marketplace.intel.com/s/partners-by-industry?language=en_US" rel="noopener noreferrer" target="_blank">bring to the table partners</a> that they can work with to solve that complexity leveraging our technical knowledge and ecosystem network. </p><p>The second thing that companies struggle with is the challenge of how to fund getting into this space – even if the business case warrants the investment. The world has changed. Companies don't want to write a big capital check for these types of investments – they want a pay-as-you-go model, like you see with the cloud. We've been working with customers to find a way to make that happen – and I think that is going to be a bigger part of the conversation moving forward.</p><p>You can see it across almost every aspect of technology now. We rent compute more than we buy compute. Evidenced by the success of AWS, companies can rent compute from Amazon instead of building their own data center – and there are many benefits to that approach. In the old world, even for this video conference that we're having today we would have installed capital to do this. Now it's just a service. And I think that edge as a service is right around the corner.</p><h4>Do you have an example of that?</h4><p>A customer in Mexico wanted to deploy outdoor WiFi and add security features into it. So, it was an edge-based computing issue that was part connectivity. But there was actually way more to it than just installing it. We not only helped to solved the technological challenge creatively and coordinated the <a href="https://marketplace.intel.com/s/partners-by-industry?language=en_US" rel="noopener noreferrer" target="_blank">ecosystem of providers</a> to solve this, but we also found a way so that the customer could get into this market with a service-based model without needing to outlay a lot of capital.</p><p>Other semiconductor companies would have a difficult time partnering on both sides of that challenge, but Intel can do it because we have the scale.</p><h4>How do businesses identify which functions they do want to perform at the edge versus in the cloud?</h4><p>It really comes down to a question of what you're trying to do and how you do it at the lowest cost, highest quality and standard in computability.</p><p>If you have an application and it can perform what you need it to do in the cloud, you'll probably run it there. The cloud is a great thing - there's infinite compute and lots of choice in a well-understood developer environment.</p><p>But there are many things you can't or shouldn't do in the cloud for certain reasons. Take the camera example from earlier. Say you have eight high-density cameras, and you want an action on them immediately. You may not be able to afford the latency that comes with going up into the cloud. Or it may be a financial challenge – that its actually more expensive to send that data to the cloud over and over again, and it makes sense to invest in compute at the edge. There are nuances in the decision-making. It really comes down to what you want the application to do, how quickly and how much it should cost.</p><h4>How does Intel help developers to learn, to build and then test their solutions at the edge?</h4><p>To enable what we know to be interesting and challenging use cases at the edge, required us to change our focus on who these developers are and what they care about. We learned that they <em>really</em> don't care about what hardware they're running on. The modern developers are fairly well extracted from the hardware – they just assume the compute is going to be available for them to do their work.</p><p>To make sure we can deliver on that, we typically target developers by specific capability. The most advanced case that we've been studying on the edge recently is focused video and specifically, video inferencing and AI inferencing. We created a tool called <a href="https://software.intel.com/content/www/us/en/develop/tools/openvino-toolkit.html" rel="noopener noreferrer" target="_blank">OpenVINO</a>, which was developed in a way that developers didn't have to care about the hardware it runs on. It's a model optimization technology that enables them to easily scale out to different hardware platforms. That's proven to be an interesting value proposition to these developers.</p><p>Our goal with <a href="https://software.intel.com/content/www/us/en/develop/tools/openvino-toolkit.html" rel="noopener noreferrer" target="_blank">OpenVINO</a> is democratize AI activity and inference at the edge. We want to make it simple -- to put these tools in the hands of non-data scientists and make it work. As a part of that process, we're also creating an environment where they can develop anyplace, anytime, anywhere they want to be. We're so proud of our <a href="https://software.intel.com/content/www/us/en/develop/tools/openvino-toolkit.html" rel="noopener noreferrer" target="_blank">OpenVINO</a> community and are constantly working to grow the community and release new features and capabilities to edge developers.</p><h4>What's the possible next breakthrough that you see for Intel in edge computing and the IoT space?</h4><p>I'm looking forward to the big breakthrough when we show integrated 5G, Virtual Private Network and the edge workloads all in one unit. More to come.</p>
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Saul Hudson has a deep knowledge of creating brand voice identity, especially in understanding and targeting messages in cutting-edge technologies. He enjoys commissioning, editing, writing, and business development, in helping companies to build passionate audiences and accelerate their growth. Hudson has reported from more than 30 countries, from war zones to boardrooms to presidential palaces. He has led multinational, multi-lingual teams and managed operations for hundreds of journalists. Hudson is a Managing Partner at Angle42, a strategic communications consultancy.
People
Making the economy work for Black entrepreneurs
Funding for Black-owned startups needs to grow. That's just the start.
"There is no quick fix to close the racial wealth and opportunity gaps, but there are many ways companies can help," said Mastercard's Michael Froman.
Photo: DigitalVision/Getty Images
February 26, 2021
Michael Froman serves as vice chairman and president, Strategic Growth for Mastercard. He and his team drive inclusive growth efforts and partner across public and private sectors to address major societal and economic issues. From 2013 to 2017, Mike served as the U.S. trade representative, President Barack Obama’s principal adviser and negotiator on international trade and investment issues. He is a distinguished fellow of the Council on Foreign Relations and a member of the board of directors of The Walt Disney Company.
February 26, 2021
Michael Froman is the vice chairman and president of Strategic Growth for Mastercard.
When Tanya Van Court's daughter shared her 9th birthday wish list — a bike and an investment account — Tanya had a moment of inspiration. She wondered whether helping more kids get excited about saving for goals and learning simple financial principles could help them build a pathway to financial security. With a goal of reaching every kid in America, she founded Goalsetter, a savings and financial literacy app for kids. Last month, Tanya brought in backers including NBA stars Kevin Durant and Chris Paul, raising $3.9 million in seed funding.
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Reaching this milestone is a testament to Tanya's perseverance and resilience as she, like many other Black women founders, struggle to find institutional investors. Our financial system is simply not set up to help Black entrepreneurs launch a business. Most new businesses are initially funded from savings and home equity, but the persistent racial wealth gap in our country places Black would-be entrepreneurs at a dramatic disadvantage since many don't have those assets available. On top of that, of the approximately $625 billion in venture capital invested since 2015, only around $15 billion went to Black and Latinx founders; that's just 2.4% of funding. For Black women founders specifically, the numbers plunge to 0.27% of funding over the past <a href="https://www.projectdiane.com/" rel="noopener noreferrer" target="_blank">two years</a>.
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This is not an issue that will resolve itself; we need to be deliberate about opening doors and bringing down barriers, not just to solve for one Black or minority-owned business at a time, but to rebuild a system that gives everyone a chance. Capitalism has lifted millions of people out of poverty and improved their quality of life, but it has also left many behind. As we now rebuild our national economy, we need to ensure future growth is inclusive, and that small businesses — the backbone of our economy — recover in a way that lifts up promising Black-owned startups at every point in their journey.
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There is no quick fix to close the racial wealth and opportunity gaps, but there are many ways companies can help. Here are four insights we've learned from years of working with startups and community organizations.
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<strong>Invest in the network.</strong> Startups like Oakland-based <a href="https://www.mycnote.com/" rel="noopener noreferrer" target="_blank">CNote</a> are working to channel capital to underserved micro and small businesses through a vast network of Black-owned banks, minority credit unions and community development financial institutions that have direct access to many local communities. However, these market innovators are hampered by complex governance requirements that Fortune 200 companies have to put in place before they will do business. We need to make it easier for new players like CNote to pass procurement hurdles and get into the pipeline so they can grow. By helping them on the back end, it opens them up to partnering with large corporates from all across the country.
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<strong>Open up access to markets.</strong> For those Black-owned businesses that do secure a first round of funding, their growth trajectory often slows when it comes to entering new markets. A startup's ability to scale increases exponentially when larger companies with trusted relationships not only make introductions to its partners but also offer the startup's services as part of a proposed solution to customers. This is an approach that has helped <a href="https://mocafi.com/about/" rel="noopener noreferrer" target="_blank">MoCaFi</a>, a New York-based, Black-owned startup that offers banking services to lower- and moderate-income communities, to start working with local city leaders in new markets. This work can be mutually beneficial for corporations: The ability to deliver effective support to underserved communities increases when the right partners with the right solutions are brought to the table.
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<strong>Digitizing access to capital.</strong> Black entrepreneurs are being denied or given smaller bank loans nearly <a href="https://www.federalreserve.gov/publications/2017-september-availability-of-credit-to-small-businesses.htm" rel="noopener noreferrer" target="_blank">twice the rate of</a> their white peers — 54% compared to 30%, respectively. Microfinance institutions and CDFIs have stepped in to fill this void, supporting applications for those previously denied loans. However, the demand exceeds the resources and tools available, and getting funds to those who need it urgently can be challenging. New digital tools can be transformative in this situation if we could accelerate access for these organizations. Many rely on slow paper-based processes, but through the digitization of both applications and distribution of loans, CDFIs like the <a href="https://crfusa.com/" rel="noopener noreferrer" target="_blank">Community Reinvestment Fund</a> and micro-finance institutions like <a href="https://www.grameenamerica.org/" rel="noopener noreferrer" target="_blank">Grameen America</a> have been able to process requests faster, more securely and for more businesses, throughout the pandemic.
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<strong>Going all in. </strong>Finally, one of the most important lessons we've learned is that the programs and partnerships used to tackle these issues can't be just for a moment in time or a single intervention. For maximum impact, companies need to be all in with the full breadth of their assets — funding, product pilots, supplier practices, consulting services, data insights — as this is how to drive a catalytic impact and create a more sustainable, inclusive digital economy.
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As more businesses, CEOs, corporate treasurers and venture capitalists join in this effort, we can collectively help bridge that wealth and opportunity gap. Startups can't scale up if they aren't given that first chance.
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As we are reminded during this Black History Month, the problems of racial economic disparity have existed for too long, and although the challenge seems daunting, we are confident that with perseverance we can successfully build a more just and equitable economy. Our early progress matters, and we should make every effort to build on the first steps by coming together across sectors and organizations so that amazing ideas like Tanya's are embraced from the outset.
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Michael Froman serves as vice chairman and president, Strategic Growth for Mastercard. He and his team drive inclusive growth efforts and partner across public and private sectors to address major societal and economic issues. From 2013 to 2017, Mike served as the U.S. trade representative, President Barack Obama’s principal adviser and negotiator on international trade and investment issues. He is a distinguished fellow of the Council on Foreign Relations and a member of the board of directors of The Walt Disney Company.
Transforming 2021
Blockchain, QR codes and your phone: the race to build vaccine passports
Digital verification systems could give people the freedom to work and travel. Here's how they could actually happen.
One day, you might not need to carry that physical passport around, either.
Photo: CommonPass
February 23, 2021
Mike Murphy ( @mcwm) is the director of special projects at Protocol, focusing on the industries being rapidly upended by technology and the companies disrupting incumbents. Previously, Mike was the technology editor at Quartz, where he frequently wrote on robotics, artificial intelligence, and consumer electronics.
February 23, 2021
There will come a time, hopefully in the near future, when you'll feel comfortable getting on a plane again. You might even stop at the lounge at the airport, head to the regional office when you land and maybe even see a concert that evening. This seemingly distant reality will depend upon vaccine rollouts continuing on schedule, an open-sourced digital verification system and, amazingly, the blockchain.
Several countries around the world have begun to prepare for what comes after vaccinations. Swaths of the population will be vaccinated before others, but that hasn't stopped industries decimated by the pandemic from pioneering ways to get some people back to work and play. One of the most promising efforts is the idea of a "vaccine passport," which would allow individuals to show proof that they've been vaccinated against COVID-19 in a way that could be verified by businesses to allow them to travel, work or relax in public without a great fear of spreading the virus.
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</div></p><p>But building a system that everyone agrees with — and can access — is no small task. There are several companies working on competing projects to verify vaccinations. But beyond that, there are more than a few hurdles that could prevent vaccine passports from succeeding, from antiquated medical records systems to interoperability issues and privacy concerns. Here's how they could actually succeed. </p><h3>Competing projects, similar standards</h3><p>Pretty much since the first blockchain white paper, people have been looking for perfect examples of where a distributed, immutable ledger could be valuable. There's obviously the push to use it for currencies, and companies have tried to use it for things like tracking <a href="https://www.protocol.com/ibm-blockchain-supply-produce-coffee" target="_self">food production</a> and <a href="https://www.govtech.com/products/Blockchain-Voting-Debate-Heats-Up-After-Historic-Election.html" rel="noopener noreferrer" target="_blank">voting</a>, but there are few use cases that have truly taken off, at least so far. "We've been working on this since 2014; we never thought that health care would be the kind of the use case that we take this mainstream," Jamie Smith, the senior director of business development at Evernym, a company focused on using the blockchain as a basis for verifying identities, told Protocol. </p><p>Smith said Evernym had been discussing its concepts with automakers, retailers, telcos, governments, loyalty companies and banks prior to the pandemic. One of those companies was IAG, the airline group that owns British Airways, which had been interested in the idea of contactless travel based on a single identity credential that follows you from the airport check-in to your gate. With the pandemic, that morphed into thinking about ways to verify that passengers have had negative COVID tests, and eventually, that they've received a vaccine. "From our perspective, it was a really easy lift to see," Smith said. "We're doing contactless travel, and we just added verifiable credentials for test results."</p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="2">
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</div></p><p>It's a similar genesis for IBM's Digital Health Pass initiative, which leader Eric Piscini said started about two years ago as a way to store people's entire health records in a safe, accessible platform. It also relies on the blockchain for its immutable record of proof, and both Evernym and IBM are part of an open-standards group called the Good Health Pass Collaborative, which aims to bring private credentialed vaccine records to business and people around the world. Companies are working on their own implementations of the standards, but Evernym's Smith said the data is meant to be portable from one passport to another. </p><p>Most of the companies working on passports say their systems are private by design, especially given that they're mainly working off the same open standards. In most cases, the health information only ever remains on a user's phone, but where it asks to verify that the user's information meets a system's standards — such as whether this person has had two COVID vaccines and should be allowed into an office — that information is recorded on a blockchain. "You can, using blockchain technologies, verify that someone has been tested recently, without having access to the underlying data," Piscini said. "I don't know any other technology where you can do that."</p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="3">
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</div></p><p>Similarly, the nonprofit Commons Project's CommonPass, backed by the likes of Oracle, Microsoft and Salesforce, started out as a project to bring an analog to Apple Health for Android. JP Pollak, a senior researcher at Cornell and founder of the Commons Project, first launched CommonHealth to bring the sort of data and insights that Apple Health offers to iPhone owners to Android users. Last summer, the group started building an app that could take health data and privately share it with others — in that case, it was to help truckers stuck at the borders in <a href="https://www.newtimes.co.rw/opinions/digital-technology-re-opening-africa" rel="noopener noreferrer" target="_blank">East African countries</a> who couldn't easily prove they'd taken COVID tests. This morphed into vaccine credentialing, with the group now working to pull together the various data streams needed to get a project like this off the ground. </p><p>"Health care institutions, EMR vendors, retail pharmacies, state vaccine registries, all issuing people a digital verifiable credential of their vaccination record that they could then use in the app of their choice, to be able to get access to various kinds of services," Pollak said. CommonPass is also working with the Mayo Clinic, as well as Epic Systems and Cerner, two of the largest EMR vendors. </p><h3>Something for everyone </h3><p>With so many competing efforts to become the world's digital vaccine passport, it might seem that the country is heading for some sort of VHS versus Betamax format war for proving everyone has had COVID vaccines. But given that so many of the efforts are using the same standards, and in many cases, looking to embed their tech in someone else's app rather than their own, the race might be less about the best tech winning, and more about various approaches working in different situations. </p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="4">
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</div></p><p>"The intent is not to be the only company; we don't want to be the proprietary platform that everybody has to use because they have no choice," IBM's Piscini said. "That's not who we are right now: That's the IBM from 30 years ago, not the IBM of today."</p><p>For IBM, though, the selling point is that the company already works with so many other massive companies. Why look elsewhere for a vaccine passport solution if your airline booking system is already powered by IBM? "We believe our network is going to be more valuable than any other because of our scale and our ability to integrate the platform with CRM systems, building systems or stadium systems — we can do that every day," Piscini said.</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTY2NTc3NS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyMTM1MjYyM30._ykxxCyx3_wDbZrYgCcmK0QT2Ue1tZFdP5pf60kOmPU/img.jpg?width=980" id="c81c9" class="rm-shortcode" data-rm-shortcode-id="3967636652192acfdaad341861263bc8" data-rm-shortcode-name="rebelmouse-image">
<small class="image-media media-caption" placeholder="Add Photo Caption...">IATA's digital passport app.</small><small class="image-media media-photo-credit" placeholder="Add Photo Credit...">Photo: IATA</small></p><p>For other companies, it's about securing new partnerships with major players in the hopes of finding that scale. Evernym, for example, is working with International Air Transport Association, the airline industry's trade association, on an air travel-specific app called Travel Pass. IATA is working with airlines and local governments to ensure it has the latest requirements to feed the app's rules engine. "It will say, 'Hey, you're flying JFK to Heathrow, you need a PCR test 48 hours in advance before you can land,'" Evernym's Smith said. "And of course, those policy changes are changing every day." Qatar, Emirates and Etihad Airways are all <a href="https://simpleflying.com/qatar-iata-travel-pass-launch/" rel="noopener noreferrer" target="_blank">expected</a> to start trialing the app in the next few weeks.<br></p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="5">
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</div></p><p>In other instances, the technology will live inside other companies' existing apps; why make someone download yet another app and add another hurdle to compliance? Instead, the experience will be rather like adding a loyalty account or TSA PreCheck number when booking a flight. Airlines and other venues restricting access will require uploading negative test results or vaccine records using one of these services. "You're going to be using the United or the Delta app, and they'll be using our solution or somebody else's, but you will do it via their app," IATA's Travel Pass lead, Alan Murray Hayden, told Protocol.</p><p>The World Health Organization is also working on its own offering, and recently convened the <a href="https://www.who.int/groups/smart-vaccination-certificate-working-group" rel="noopener noreferrer" target="_blank">Smart Vaccination Certificate Working Group</a>. It's built upon the WHO's nearly century-old notion of the "yellow card" vaccination record, which first was used to document that travelers had been inoculated against diseases such as cholera and yellow fever. Evernym Chief Trust Officer Drummond Reed is part of the working group; he said there should be more to share in the coming months. </p><h3>What could go wrong?</h3><p>It's entirely possible that as more people start to get vaccinated, vaccine passports start to become the norm. You walk to work — still masked, of course — scan a QR code reader in the lobby, and are let in. You go out for lunch, and your loyalty card app has a discount for in-store shoppers verifying they're vaccinated. Your concert ticket is also tied to health pass information that you shared earlier in the day with Ticketmaster. But there are more than a few hurdles ahead of the companies rushing to turn these concepts into realities. </p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="6">
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</div></p><p>First off, there's the … reality … of the real world that any digital system has to contend with. For anyone without access to the internet, digital vaccine credentials will prove difficult to acquire, though all the companies Protocol spoke with said they would offer a paper-based QR code for people who don't have smartphones. But there's also the issue of having to corral so many different stakeholders into one system, especially when some health care providers are still reliant on antiquated database systems or <a href="https://www.protocol.com/manuals/health-care-revolution/electronic-health-records-after-coronavirus" target="_self">even paper records</a>. "The amount of inefficiency in the system is tremendous," IBM's Piscini said. </p><p>But in the U.S. at least, all vaccinators are required to report COVID-19 vaccines to their state. Piscini said that even for people who just received a paper copy of their vaccine records, systems like IBM's can likely link up to the state's immunization registry and allow people to import records to a vaccine passport.</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNTY2NTc4My9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYzNzg3MTM2M30.RZtqR7F_FuXK1S24V6jVaqUZ0xOSG-gCwj00xU3fxcM/img.png?width=980" id="b0bd3" class="rm-shortcode" data-rm-shortcode-id="11d8002d92c0cd6ef39b12fc7b8dccf8" data-rm-shortcode-name="rebelmouse-image">
<small class="image-media media-caption" placeholder="Add Photo Caption...">How CommonPass's app shows your records. </small><small class="image-media media-photo-credit" placeholder="Add Photo Credit...">Image: CommonPass</small></p><p>And states are willing to help out, Pollak said, adding that CommonPass has started working with Hawaii to roll out its offering for would-be tourists. "We're seeing a lot of state governments stepping up and doing a really good job with this," Pollak said. "It would be surprising if there wasn't a coordinated federal effort very soon." That being said, while <a href="https://www.cbc.ca/news/canada/north/iceland-covid-passports-canada-1.5904828" rel="noopener noreferrer" target="_blank">many countries around</a> the world are committing to working on vaccine passports, getting a straight answer out of the U.S. government on what it's doing has proven difficult. The State Department, which maintains America's traditional, analogue passports, referred me to Homeland Security, which referred me to the White House. The acting director and chief of staff of the White House's Office of Science and Technology Policy, Kei Koizumi, told Protocol that "OSTP can't discuss projects we are working on before they are publicly announced."</p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="7">
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</div></p><p>But even with systems in place at a federal level, there's still a fair amount of education that needs to happen before people will trust systems like these. "There's a substantial gap in understanding and knowledge of how these systems work, and people's views, in terms of who should get access to which data," Pollak said. </p><p>"We assume there's a Facebook Borg in the sky, monitoring every interaction," Smith said. "The emergence of verifiable credentials breaks down that mental model, where actually it becomes more like decentralized bits of paper that I can carry around, and no one's to know that I've been sharing this information."</p><p>"Our belief is that if you do the right thing, from a platform point of view, protecting your privacy, and giving you control and access to the platform to everybody who wants to use it," Piscini said. "I think those are very basic things that allow the core of the platform that we build to generate adoption by the individuals."</p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="8">
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</div></p><p>Even with a system that works, there may still be holdouts to this potential new normal. "Some people are saying, 'I will never get vaccinated,'" Piscini said, "and I don't know if the airlines are going to say, 'Well, maybe you will never fly again.'"</p>
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Mike Murphy ( @mcwm) is the director of special projects at Protocol, focusing on the industries being rapidly upended by technology and the companies disrupting incumbents. Previously, Mike was the technology editor at Quartz, where he frequently wrote on robotics, artificial intelligence, and consumer electronics.
Policy
Bad news for Big Tech: Bipartisan agreement on antitrust reform
Democrats and Republicans found common ground during the first House hearing on antitrust of the new Congress. Here's what that means for tech giants.
The House Judiciary antitrust subcommittee held their first hearing of the 117th Congress.
Photo: Tom Williams/Getty Images
February 25, 2021
Emily Birnbaum ( @birnbaum_e) is a tech policy reporter with Protocol. Her coverage focuses on the U.S. government's attempts to regulate one of the most powerful industries in the world, with a focus on antitrust, privacy and politics. Previously, she worked as a tech policy reporter with The Hill after spending several months as a breaking news reporter. She is a Bethesda, Maryland native and proud Kenyon College alumna.
February 25, 2021
During the first House antitrust hearing of the new Congress, Democratic chairman David Cicilline and Republican ranking member Ken Buck made it clear they intend to forge ahead with a series of bipartisan reform efforts that could cut into the power of the largest technology companies.
"We will work on a serious bipartisan basis to advance these reforms together," Cicilline said during his opening remarks Thursday.
<p>Buck said he still doesn't agree with his Democratic counterpart's efforts to create "Glass-Steagall legislation" for the internet age, a sweeping reform that would prevent companies like Amazon from owning a marketplace while competing within it. Buck argued that could take a "chainsaw to the whole economy." </p><p>But the two top members of the House Judiciary antitrust subcommittee did tee up multiple pieces of antitrust legislation that could have a chance of making it through the Senate, which requires some Republican support. Buck, in particularly, identified three core areas where he sees a path forward, harkening back to his "<a href="https://buck.house.gov/media-center/press-releases/rep-buck-pens-antitrust-report-presents-third-way-take-big-tech" rel="noopener noreferrer" target="_blank">Third Way</a>" report last year:</p><p><div class="ad-tag"><div class="ad-place-holder" data-pos="1">
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</div></p><ul class="ee-ul"><li><strong>Increasing funding</strong> for the Department of Justice and Federal Trade Commission's antitrust efforts. This is the lowest-hanging fruit in terms of bipartisan proposals to reform antitrust, and it plays a significant role in <a href="https://www.protocol.com/amy-klobuchar-big-tech-antitrust" target="_self">Senator Amy Klobuchar's recent antitrust legislation</a>. Most antitrust experts take it as a given that the agencies need far more resources, and even expanded authorities, in order to bring the best cases against the Googles and Facebooks of the world.</li><li><strong>Enacting data portability and interoperability rules.</strong> Legislation along these lines could require dominant platforms to make their services compatible with one another and make it easier for consumers to take their data with them. It was one of the key proposals laid out in the Democrats' <a href="https://judiciary.house.gov/uploadedfiles/competition_in_digital_markets.pdf" rel="noopener noreferrer" target="_blank">antitrust report last year</a>. <a href="https://about.fb.com/news/2019/09/privacy-and-data-portability/" rel="noopener noreferrer" target="_blank">Facebook has its own ideas</a> about how that could look, and certain models pose serious privacy concerns. Progressives are likely to say that this kind of regulation does not go far enough. But each of the witnesses, which included a cross section of both progressives and antitrust skeptics, agreed Congress should explore creating rules around portability and interoperability. </li><li><strong>Reforming the burden of proof in merger cases.</strong> Currently, the burden is on the government to prove that mergers are anti-competitive. But many reform proposals say it's time to flip that around, requiring dominant firms to justify why certain mergers <em>aren't</em> problematic. This could be a sticky area for many Republicans, who are likelier to say that this assumes the platforms are guilty until proven innocent. But it's been touted by key members of President Joe Biden's circle, including Bill Baer, former assistant attorney general for the United States Department of Justice Antitrust Division, who helped out with Biden's <a href="https://www.rollcall.com/2020/11/19/biden-urged-to-toughen-antitrust-law/" target="_blank">FTC transition team.</a></li></ul><p>Cicilline said that he is planning to put out legislation after a series of hearings over the next month about antitrust. Those hearings are not likely to include any Big Tech CEOs, but are instead intended to delve into specific proposals around how to address the firms' outsized power. It's possible he could introduce several pieces of legislation, some with Republican sign-on and some without.</p><p>"Change is coming," Cicilline said at the hearing. "Laws are coming."</p>
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Emily Birnbaum ( @birnbaum_e) is a tech policy reporter with Protocol. Her coverage focuses on the U.S. government's attempts to regulate one of the most powerful industries in the world, with a focus on antitrust, privacy and politics. Previously, she worked as a tech policy reporter with The Hill after spending several months as a breaking news reporter. She is a Bethesda, Maryland native and proud Kenyon College alumna.
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