Analysis and commentary on the business of technology

The Bay Table

Washington takes on search, phones and the lab that wrote its own rules.

Power and who holds it

  • The Justice Department's case against Google is better aimed than its fans realise, and narrower than its critics fear.
  • Why Judge Mehta was right to leave Google its browser, and why a break-up appeal is the wrong fight.
  • Microsoft's $1bn bet on OpenAI looks less like a punt on thinking machines than a prepaid order for its own cloud.

In this issue

Leaders

  1. Official White House portrait of President Donald Trump

    Platform power

    Unfollowed

    Twitter and Facebook were within their rights to cut off Donald Trump, but a power this large needs published rules and an appeal, not a decision made on a Friday evening

    8 January 2021

  2. The facade of Parliament House in Canberra, Australia

    Australia v Facebook

    Breaking news

    Australia was right that platforms hold too much power over news, but a law that prices links is a clumsy tool, and the countries now eyeing it should copy the leverage, not the mechanism

    25 February 2021

  3. The glass cube entrance of the Apple Store on Fifth Avenue, New York

    Privacy and power

    Please don't ask

    Apple's tracking prompt is good for users and better for Apple, so regulators should insist that the firm lives under the same rule it imposes on everyone else

    26 April 2021

  4. Sam Altman speaking on stage at TechCrunch Disrupt San Francisco in 2019

    OpenAI's governance

    Return of the king

    OpenAI's board did exactly what it was built to do and lost within five days; the lab should stop pretending a charity can steer it and let competition and the law do the job

    22 November 2023

  5. Mustafa Suleyman, co-founder of DeepMind and Inflection AI

    Acqui-hires and merger review

    Hire power

    Microsoft's hiring of Inflection's leaders and staff should be reviewed as the merger it resembles, because a deal that moves a company's people but not its shares is still a deal

    19 March 2024

  6. Departure screens at LaGuardia airport showing the Windows blue screen of death during the CrowdStrike outage

    The CrowdStrike outage

    Blue screen of debt

    The CrowdStrike outage shows that firms with deep access to everyone's computers should be treated as infrastructure, with staged updates and liability to match, rather than as software vendors who can disclaim everything

    20 July 2024

  7. The E. Barrett Prettyman United States Courthouse in Washington, DC, seen from the National Gallery of Art's East Building

    America v Google

    Spare the Chrome

    Judge Mehta was right to leave Google its browser and its phone software, and America should now spend its energy on making the data-sharing order work rather than on an appeal for a break-up.

    4 September 2025

Business & Finance

  1. A plaza between office buildings on Microsoft's Redmond, Washington, campus

    Microsoft and OpenAI · Giannini

    Billion-dollar brain

    Microsoft's $1bn bet on OpenAI is less a punt on thinking machines than a prepaid order for its own cloud, and that makes it a shrewd one

    22 July 2019

  2. Salesforce Tower, the tallest building in San Francisco, rising above the city's skyline

    Salesforce and Slack · Giannini

    Chat room at the top

    Regulators should wave through Salesforce's $27.7bn purchase of Slack, which adds a serious rival to Microsoft; the price is a matter for Salesforce's shareholders.

    1 December 2020

  3. The Amazon Spheres, a workplace and conservatory on the Amazon headquarters campus in Seattle, seen from 6th Avenue

    Amazon's succession · Giannini

    Next-day delivery

    Jeff Bezos has picked the man who built the firm's profits, and the choice says more about where Amazon earns its money than about who will run it.

    2 February 2021

  4. Broadcom Inc. headquarters in San Jose, California

    Broadcom and VMware · Giannini

    Virtually mine

    Broadcom's $61bn price for VMware is hard to earn back without raising bills, so regulators should ask whether customers can walk away.

    26 May 2022

  5. Twitter's headquarters at 1355 Market Street, San Francisco

    Twitter and Elon Musk · Giannini

    Bird in hand

    Mr Musk has paid full price for a loss-making firm whose customers can leave at will, and no change of ownership will fix that.

    28 October 2022

  6. The entrance sign at Meta's headquarters in Menlo Park, California

    Meta's year of efficiency · Giannini

    Lean in

    Investors have rewarded Meta for spending less, which is sensible, but efficiency is a means and the firm has yet to say what it is for.

    2 February 2023

  7. Building 92 on Microsoft's campus in Redmond, Washington

    Microsoft's market value · Giannini

    Soft power

    Investors have priced Microsoft as the winner of the AI race, yet the prize still depends on customers paying $30 a month for a chatbot.

    24 January 2024

  8. Alphabet's Googleplex headquarters in Mountain View, California

    Alphabet's capital return · Giannini

    Paying attention

    Alphabet's first dividend says less about a maturing firm than about a cash pile that outgrew its owner's ideas for it.

    25 April 2024

Policy & Regulation

  1. The Marriner S. Eccles Federal Reserve Board Building in Washington, DC

    Facebook's Libra · Warren

    Coin flip

    Congress should neither strangle Libra in the crib nor wave it through; the sensible test is whether Facebook will submit to the rules that already bind everyone else who handles other people's money.

    17 July 2019

  2. The Court of Justice of the European Union in Luxembourg

    Transatlantic data · Warren

    Shield of dreams

    Europe's court was right that American surveillance law fails its tests, and a third patched-up deal would only schedule a third defeat; Washington should change the law.

    17 July 2020

  3. Buildings of the Googleplex, Google's headquarters in Mountain View, California

    America v Google · Warren

    Feeling lucky

    The Justice Department's case against Google is narrower than its critics fear and better aimed than its fans realise, and its target should be the price of the default.

    22 October 2020

  4. Entrance sign at Facebook's headquarters complex in Menlo Park, California

    America v Facebook · Warren

    Face value

    The government has a fair case that Facebook bought a rival it feared, but a breakup is the wrong cure and the regulator's own clearance of the deals is the weakest part of its case.

    10 December 2020

  5. Official portrait of Lina Khan, chair of the Federal Trade Commission

    Lina Khan at the FTC · Warren

    Paradox lost

    Lina Khan is right that antitrust has grown too fond of low prices, but she will do more for competition by winning cases under the law as it stands than by trying to rewrite it.

    16 June 2021

  6. The Ronald V. Dellums Federal Building in Oakland, California, where the Epic v Apple case was heard

    Epic v Apple · Warren

    Steering committee

    Judge Gonzalez Rogers was right to clear Apple of monopoly and right to let developers point customers elsewhere; the second ruling does more for competition than the first would have.

    11 September 2021

  7. The Berlaymont building in Brussels, headquarters of the European Commission

    The Digital Markets Act · Warren

    Gate expectations

    Europe's new rulebook for tech gatekeepers is right to demand choice, but it should stop short of dictating how rival products are built.

    25 March 2022

  8. A Microsoft Xbox Series X console standing upright beside its controller

    America v Microsoft · Warren

    Level playing field

    The FTC is right to worry about a console maker hoarding games, but a binding promise to share Call of Duty is a better remedy than a ban on the deal.

    9 December 2022

  9. An advertising column plastered with torn and overlapping posters

    America v Google, again · Warren

    Bidding farewell

    The Justice Department is right that Google should not run both the auction and the biggest bidders in it, and a break-up of the ad exchange is the remedy to press.

    25 January 2023

  10. The glass Spheres beside Amazon's headquarters in Seattle

    America v Amazon · Warren

    Prime suspect

    The government's case against Amazon is strongest where it targets the penalty for cheap prices elsewhere, and weakest where it treats a popular service as a crime.

    27 September 2023

  11. The Phillip Burton Federal Building and United States Courthouse in San Francisco

    Epic v Google · Warren

    Play the field

    A jury has found that Google rigged Android's app market, and the right remedy is more competition for the Play Store, not a court-drawn design for the phone.

    12 December 2023

  12. Aerial view of Apple Park, Apple's ring-shaped headquarters in Cupertino, California

    America v Apple · Warren

    An Apple a day

    The Justice Department's suit is strongest where Apple's gatekeeping protects its services profits, and it should resist the temptation to ask a court to design the iPhone.

    22 March 2024

Youth

  1. Headshot of Gitanjali Rao, the young scientist and inventor

    Gitanjali Rao

    Lead role

    The interesting thing about TIME's first Kid of the Year is not her gadgets but the method behind them, which any adult with a budget could copy and few do.

    5 December 2020

  2. A GameStop shopfront in Glen Ellyn, Illinois

    Young retail traders

    Stonks go up, and down

    The GameStop frenzy has been told as a morality play about the young and the reckless, but the evidence says that they are neither a mob nor a crowd of sages, and that regulators should look at the app before the user.

    18 February 2021

  3. Portrait of Alexandr Wang, founder and chief executive of Scale AI, in 2022

    Alexandr Wang

    Labour of data

    Scale AI's founder built a billion-dollar firm on the unglamorous fact that machine intelligence needs human labour, and its next test is whether that remains true.

    21 May 2024

  4. A Hollister clothing store in the Willow Grove Park mall, Pennsylvania

    Teen spending

    Brand loyalty card

    Piper Sandler's teen survey shows a generation whose tastes are remarkably stable, and investors who read every wobble in it as a trend should be more sceptical of the headline numbers.

    9 October 2024

  5. Social media app icons on the screen of a smartphone

    Finfluencers

    Follow the leader

    Regulators are right to pursue finfluencers, but the better target is the firm that pays them, because the young investor's trust is real and will outlast any single prosecution.

    22 October 2024

The world this week

Facebook's Libra. Congress should neither strangle Libra in the crib nor wave it through; the sensible test is whether Facebook will submit to the rules that already bind everyone else who handles other people's money. Read more on Coin flip

Microsoft and OpenAI. Microsoft's $1bn bet on OpenAI is less a punt on thinking machines than a prepaid order for its own cloud, and that makes it a shrewd one Read more on Billion-dollar brain

Transatlantic data. Europe's court was right that American surveillance law fails its tests, and a third patched-up deal would only schedule a third defeat; Washington should change the law. Read more on Shield of dreams

America v Google. The Justice Department's case against Google is narrower than its critics fear and better aimed than its fans realise, and its target should be the price of the default. Read more on Feeling lucky

Salesforce and Slack. Regulators should wave through Salesforce's $27.7bn purchase of Slack, which adds a serious rival to Microsoft; the price is a matter for Salesforce's shareholders. Read more on Chat room at the top

Gitanjali Rao. The interesting thing about TIME's first Kid of the Year is not her gadgets but the method behind them, which any adult with a budget could copy and few do. Read more on Lead role

America v Facebook. The government has a fair case that Facebook bought a rival it feared, but a breakup is the wrong cure and the regulator's own clearance of the deals is the weakest part of its case. Read more on Face value

Platform power. Twitter and Facebook were within their rights to cut off Donald Trump, but a power this large needs published rules and an appeal, not a decision made on a Friday evening Read more on Unfollowed

Amazon's succession. Jeff Bezos has picked the man who built the firm's profits, and the choice says more about where Amazon earns its money than about who will run it. Read more on Next-day delivery

Young retail traders. The GameStop frenzy has been told as a morality play about the young and the reckless, but the evidence says that they are neither a mob nor a crowd of sages, and that regulators should look at the app before the user. Read more on Stonks go up, and down

Australia v Facebook. Australia was right that platforms hold too much power over news, but a law that prices links is a clumsy tool, and the countries now eyeing it should copy the leverage, not the mechanism Read more on Breaking news

Privacy and power. Apple's tracking prompt is good for users and better for Apple, so regulators should insist that the firm lives under the same rule it imposes on everyone else Read more on Please don't ask

Lina Khan at the FTC. Lina Khan is right that antitrust has grown too fond of low prices, but she will do more for competition by winning cases under the law as it stands than by trying to rewrite it. Read more on Paradox lost

Epic v Apple. Judge Gonzalez Rogers was right to clear Apple of monopoly and right to let developers point customers elsewhere; the second ruling does more for competition than the first would have. Read more on Steering committee

The Digital Markets Act. Europe's new rulebook for tech gatekeepers is right to demand choice, but it should stop short of dictating how rival products are built. Read more on Gate expectations

Broadcom and VMware. Broadcom's $61bn price for VMware is hard to earn back without raising bills, so regulators should ask whether customers can walk away. Read more on Virtually mine

Twitter and Elon Musk. Mr Musk has paid full price for a loss-making firm whose customers can leave at will, and no change of ownership will fix that. Read more on Bird in hand

America v Microsoft. The FTC is right to worry about a console maker hoarding games, but a binding promise to share Call of Duty is a better remedy than a ban on the deal. Read more on Level playing field

America v Google, again. The Justice Department is right that Google should not run both the auction and the biggest bidders in it, and a break-up of the ad exchange is the remedy to press. Read more on Bidding farewell

Meta's year of efficiency. Investors have rewarded Meta for spending less, which is sensible, but efficiency is a means and the firm has yet to say what it is for. Read more on Lean in

America v Amazon. The government's case against Amazon is strongest where it targets the penalty for cheap prices elsewhere, and weakest where it treats a popular service as a crime. Read more on Prime suspect

OpenAI's governance. OpenAI's board did exactly what it was built to do and lost within five days; the lab should stop pretending a charity can steer it and let competition and the law do the job Read more on Return of the king

Epic v Google. A jury has found that Google rigged Android's app market, and the right remedy is more competition for the Play Store, not a court-drawn design for the phone. Read more on Play the field

Microsoft's market value. Investors have priced Microsoft as the winner of the AI race, yet the prize still depends on customers paying $30 a month for a chatbot. Read more on Soft power

Acqui-hires and merger review. Microsoft's hiring of Inflection's leaders and staff should be reviewed as the merger it resembles, because a deal that moves a company's people but not its shares is still a deal Read more on Hire power

America v Apple. The Justice Department's suit is strongest where Apple's gatekeeping protects its services profits, and it should resist the temptation to ask a court to design the iPhone. Read more on An Apple a day

Alphabet's capital return. Alphabet's first dividend says less about a maturing firm than about a cash pile that outgrew its owner's ideas for it. Read more on Paying attention

Alexandr Wang. Scale AI's founder built a billion-dollar firm on the unglamorous fact that machine intelligence needs human labour, and its next test is whether that remains true. Read more on Labour of data

The CrowdStrike outage. The CrowdStrike outage shows that firms with deep access to everyone's computers should be treated as infrastructure, with staged updates and liability to match, rather than as software vendors who can disclaim everything Read more on Blue screen of debt

Teen spending. Piper Sandler's teen survey shows a generation whose tastes are remarkably stable, and investors who read every wobble in it as a trend should be more sceptical of the headline numbers. Read more on Brand loyalty card

Finfluencers. Regulators are right to pursue finfluencers, but the better target is the firm that pays them, because the young investor's trust is real and will outlast any single prosecution. Read more on Follow the leader

America v Google. Judge Mehta was right to leave Google its browser and its phone software, and America should now spend its energy on making the data-sharing order work rather than on an appeal for a break-up. Read more on Spare the Chrome