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"It is long overdue that Microsoft and other Big Tech monopolies are broken up—for good," said one expert.
Digital rights advocates responded to Friday's havoc-wreaking global technology outage by sounding the alarm on the Big Tech monopolies.
The outage—which is being attributed to a software update by the U.S.-based cybersecurity firm CrowdStrike—sparked worldwide chaos on Friday, causing so-called "blue screens of death" on computers using Microsoft Windows. The outage grounded commercial flights and caused serious disruptions to transportation, financial, and healthcare systems.
"Today's massive global Microsoft outage is the result of a software monopoly that has become a single point of failure for too much of the global economy," George Rakis, executive director of the advocacy group NextGen Competition, said in a statement.
"For decades, Microsoft's pursuit of a vendor lock-in strategy has prevented the public and private sectors from diversifying their IT capabilities," he continued. "From airports to hospitals to 911 call centers to financial systems, millions today are feeling the consequences of the greed and ego of one of the most egregious offenders in Big Tech."
Emily Peterson-Cassin, who heads Demand Progress' corporate power program, said that "today's outage shows how one software issue stemming from only one or two companies can ground flights, take down hospital systems, stop 911 calls, and cut off access to the internet in one fell swoop."
"Economy-wide reliance on a few giant companies is a serious fundamental risk to Americans," she asserted. "No one regulatory or legislative intervention will prevent this kind of situation, but there are plenty of policies that can reduce the danger. Efforts to empower regulators' ability to tackle the risks posed by concentrated corporate actors are critical to protecting Americans from these kinds of failures."
Bloomberg columnist Parmy Olson—who focuses on tech issues—said that Friday's outage "should spur Microsoft and other IT firms to do more than simply administer a Band-aid."
"The bigger problem is the supply chain itself for cloud computing and, by extension, cybersecurity services, which has left too many organizations vulnerable to a single point of failure," she noted. "When just three companies—Microsoft, Amazon, and Google—dominate the market for cloud computing, one minor incident can have global ramifications."
European Union nations "are furthest ahead in addressing the market stranglehold that these so-called hyperscalers have with the new E.U. Data Act, which aims to lower the cost of switching between cloud providers and improve interoperability," Olson noted.
"U.S. legislators should get in the game too," she argued. "One idea might be to force companies in critical sectors like healthcare, finance, transportation, and energy to use more than just one cloud provider for their core infrastructure, which tends to be the status quo."
"Instead, a new regulation could force them to use at least two independent providers for their core operations, or at least ensure that no single provider accounts for more than about two-thirds of their critical IT infrastructure," Olson added. "If one provider has a catastrophic failure, the other can keep things running."
However, most congressional efforts to rein in Big Tech monopoly power and encourage competition have failed or languished amid opposition and obstruction from lobbyists and corporate lawmakers.
Ultimately, Rakis stressed, "it is long overdue that Microsoft and other Big Tech monopolies are broken up—for good."
"Microsoft has turned a blind eye to cybersecurity vulnerabilities for years and enough is enough," Rakis said. "Not only are these monopolies too big to care, they're too big to manage. And despite being too big to fail, they have failed us. Time and time again. Now, it's time for a reckoning. We can't continue to let Microsoft's executives downplay their role in making all of us more vulnerable."
Amid celebrations over the ruling, one legal expert warned, "Don't confuse 'SCOTUS slaps down a wackadoodle 5th Circuit decision' with 'SCOTUS is more moderate than its critics claim.'"
Legal experts and progressive advocates on Thursday applauded the U.S. Supreme Court's 7-2 decision to uphold the Consumer Financial Protection Bureau's funding mechanism but also cautioned against praising the far-right justices.
While Justices Samuel Alito and Neil Gorsuch dissented, fellow right-winger Clarence Thomas penned the opinion in CFPB v. Consumer Financial Services Association of America, joined by the other three conservatives and three liberals—two of whom wrote concurring opinions.
In the majority opinion, the court held that "Congress' statutory authorization allowing the bureau to draw money from the earnings of the Federal Reserve System to carry out the bureau's duties satisfies the appropriations clause" of the U.S. Constitution.
In a statement welcoming the ruling, the CFPB said that "for years, lawbreaking companies and Wall Street lobbyists have been scheming to defund essential consumer protection enforcement. The Supreme Court has rejected their radical theory that would have devastated the American financial markets. The court repudiated the arguments of the payday loan lobby and made it clear that the CFPB is here to stay."
The bureau continued:
Congress created the CFPB to be the primary federal watchdog protecting consumers from predatory and abusive practices in the financial sector. Since the CFPB opened its doors in 2011, it has delivered more than $20 billion in consumer relief to hundreds of millions of consumers and has handled more than 4 million consumer complaints.
Today's decision is a resounding victory for American families and honest businesses alike, ensuring that consumers are protected from predatory corporations and that markets are fair, transparent, and competitive.
This ruling upholds the fact that the CFPB's funding structure is not novel or unusual, but in fact an essential part of the nation's financial regulatory system, providing stability and continuity for the agencies and the system as a whole. As we have done since our inception, the CFPB will continue carrying out the vital consumer protection work Congress charged us to perform for the American people.
The CFPB was far from alone in cheering the court's decision in the case, which Demand Progress corporate power director Emily Peterson-Cassin said "was nothing more than a cynical attempt by payday lenders to sabotage the CFPB, so they could continue to prey on American consumers."
"This case was simple: the Constitution requires Congress to pass a law authorizing funds for the CFPB, and Congress did that," she explained. "Today's decision will preserve stability in the financial markets and ensure the CFPB can continue its important work protecting the American people."
U.S. Sen. Elizabeth Warren (D-Mass.), a key architect of the agency, agreed that "this is a big win for working people."
Devon Ombres, senior director for courts and legal policy at the Center for American Progress, also celebrated a ruling he said would allow the agency "to continue fighting to protect the American people from corporate bad actors, fraudsters, and scammers."
While praising the decision, Ombres pointed out that "the justices reversed yet another extreme opinion from the 5th Circuit Court of Appeals that could have placed the entire financial regulatory system at risk and roiled financial markets."
Accountable.US similarly declared that in this case, "consumers win," and blasted the far-right appellate court.
"The reason the Consumer Financial Protection Bureau is so effective at making wronged consumers whole is because of its independence, which is why shady industry CEOs and lawmakers in their pocket wanted to jam up the agency's funding with politics and lobbyist money," said Accountable.US president Caroline Ciccone.
"Among the biggest losers in this decision is the conservative 5th Circuit that gleefully advanced this lawsuit from predatory lenders and has sided with industry over consumers in a number of cases citing the same baseless arguments," Ciccone added. "The 5th Circuit's credibility continues to suffer as it willingly plays along with industry judge and venue shopping schemes that corrupt our judicial system."
Legal experts took aim at not only the appellate court but also right-wingers on the country's top court. Slate's Mark Joseph Stern said that "today's decision is a HUGE victory for the CFPB and a major defeat not only for the corporate lobby, but for the 5th Circuit, which embraced a theory so radically anti-historical and atextual that JUSTICE THOMAS wrote the opinion emphatically reversing it."
"Today's CFPB decision has a lot in common with the last Obamacare case: The 5th Circuit went so far off the tracks that it got a spanking in the form [of] a vehement 7-2 reversal by SCOTUS, with even Justice Thomas concluding that the 5th Circuit's nihilistic arsonists lost the plot," he added. "That said, no one should interpret today's CFPB decision as proof that the Supreme Court is 'moderating' or 'compromising' or 'shifting to the center.' Not at all. The decision is evidence of how totally lawless the 5th Circuit has become—because this case shouldn't even exist!"
CNN Supreme Court analyst and University of Texas School of Law professor Steve Vladeck warned: "Don't confuse 'SCOTUS slaps down a wackadoodle 5th Circuit decision' with 'SCOTUS is more moderate than its critics claim.' 'Not as radical as the 5th Circuit' is not the same as 'moderate.'"
Supporters of Thursday's decision also warned that the fight isn't over. Groundwork Collaborative chief economist Rakeen Mabud said that "today's Supreme Court decision was decisively in favor of federal oversight on consumer protection, but we know that big business and their lobbyists won't stop trying to dismantle an agency dedicated to protecting everyday Americans."
"This makes it all the more important that the Consumer Financial Protection Bureau continues its critical work," Mabud added of an agency that has recently cracked down on credit card and overdraft fees.
U.S. PIRG consumer campaign director Mike Litt suggested that "all Americans should still breathe a sigh of relief now that the constitutionality of the CFPB's funding is a settled matter. The CFPB extending its nearly 13-year run of protecting consumers no longer hangs in the balance."
"That said, we know those who oppose the CFPB and its work will keep attacking this crucial agency," he added. "Congress must reject efforts to change the CFPB's reliable and constitutional source of funding, which has enabled it to return $19 billion to consumers."
"Today marks the last day that internet service providers can continue to put profit over people," said one advocate.
Open internet advocates on Thursday applauded the Federal Communications Commission's long-anticipated vote to revive net neutrality rules and reestablish FCC oversight of broadband.
The 3-2 vote along party lines to reclassify broadband as a public service under Title II of the Communications Act came seven months after FCC Chair Jessica Rosenworcel announced the push in the wake of the U.S. Senate confirming Commissioner Anna Gomez.
Commissioner Geoffrey Starks joined Rosenworcel and Gomez to launch the rulemaking process last year and finalize the policy change on Thursday. Commissioner Brendan Carr and Nathan Simington both aligned with the powerful telecom industry by opposing the effort to prevent internet service providers from blocking, throttling, or engaging in paid prioritization of lawful online content.
Demand Progress Education Fund senior campaigner Joey DeFrancesco said the revival "has been desperately needed" since former FCC Chair Ajit Pai—an appointee of former Republican President Donald Trump—led the "disastrous decision" in 2017 to gut a 2015 agency policy codifying the principle that has been foundational to the internet since its inception.
"Internet access is not a luxury, but a necessity to participate in society and survive in our modern economy," DeFrancesco stressed. "The FCC's new rule will ensure the commission has the full ability to expand broadband and the authority to ensure access to an open internet."
"The FCC's vote today returns the internet to the American people."
Free Press co-CEO Craig Aaron declared that "everyone should celebrate today's FCC vote."
"Public support for net neutrality is overwhelming, and people understand why we need a federal watchdog to protect everyone's access to the most essential communications platform of our time," he noted. "The FCC heard the outcry and did its job: delivering on promises to stand with internet users and against big telecom companies and their trade groups, which have spent untold millions of dollars to spread lies about net neutrality and thwart any oversight or regulation."
Aaron praised Rosenworcel and her staff for leading the restoration effort, as well as Starks and Gomez for working with her to reverse the Trump FCC's move and ensure "that the agency can once again protect internet users whenever big phone and cable companies like AT&T, Comcast, Spectrum, and Verizon attempt to harm them."
"Big cable and phone companies won't be able to pick and choose what any of us can say or see online. Net neutrality is a guarantee that these companies will carry our data across the internet without undue interference or unreasonable discrimination," he emphasized. "This is what democracy should look like: Public servants responding to public sentiment, taking steps to protect just and reasonable services and free expression, and showing that the government is capable of defending the public interest."
Michael Copps, a former FCC commissioner and current Common Cause special adviser, was similarly enthusiastic, saying that "if I weren't out of the country today, I would be personally at the FCC jumping up and down, saluting the majority for reinstituting the network neutrality rules that were so foolishly eliminated by the previous commission."
"Our communications technologies are evolving so swiftly, affecting so many important aspects of our individual lives, that they must be available to all of us on a nondiscriminatory basis. And they must advance the public interest, protecting consumers, fostering competition, and providing us all the news and information we need as we fight to maintain our democracy," he continued. "We still have much to do; but today, let's celebrate a huge step forward."
The vote notably comes during an election year—and as Democratic President Joe Biden, a net neutrality supporter, is gearing up for a November rematch against Trump.
"The internet is crucial to civic engagement in the United States today. It functions as a virtual public square where social justice movements organize and garner support," said Common Cause's Ishan Mehta. "The FCC's vote today returns the internet to the American people."
Jenna Leventoff, senior policy counsel at the ACLU, also piled on the praise, proclaiming that "today marks the last day that internet service providers can continue to put profit over people."
"We are thrilled that the FCC now has the authority it needs to protect consumers, promote the exercise of First Amendment rights online, and ensure that everyone has access to high-quality, affordable internet," she said. "However, we urge the commission not to exercise its authority to preempt consistent state laws that grant consumers additional protections."
John Bergmayer, legal director at Public Knowledge, also celebrated the vote while stressing that the commission's work is far from over. In addition to warning of court fights to come, he said that "broadband providers will continue attempting to rebrand their old plans for internet fast and slow lanes, hoping to sneak them through."
"The FCC will need to diligently enforce its rules," Bergmayer argued, "including clarifying that discrimination in favor of certain apps or categories of traffic 'impairs' and 'degrades' traffic that is left in the slow lane, and that broadband providers cannot simply take apps that people use on the internet every day and package them as a separate 'nonbroadband' service."
"The FCC must also ensure that practices that are not expressly prohibited but still unreasonably interfere with the ability of end users to freely use the internet, or of edge providers to freely compete, are disallowed," he added. "These practices include discriminatory zero-rating and network interconnection practices."
Like Leventoff, he also recognized the vital role of states with stricter policies, saying that those "with excellent net neutrality and broadband consumer protection statutes, like California, can be a nationwide model for other states and the FCC to adopt to strengthen their own rules."