Saturday, July 17, 2021

How facebook helps the Authoritarian Regime in Vietnam

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Vaishnavi Krishna Mohan

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How facebook helps the Authoritarian Regime in Vietnam

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Global Views 360

Publication Date

July 17, 2021

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Representative Image, Facebook and Surveillance

Representative Image, Facebook and Surveillance | Source: Glen Carrie via Unsplash

The ability of coercing American tech giants like Facebook into compliance is definitely a talking point to brag for the Vietnamese leaders. In October 2019, Facebook’s CEO Mark Zuckerberg stated that “Facebook stands for free expression. In a democracy, a private company shouldn’t have the power to censor politicians or the news.” However, Facebook’s double standard is no novelty. In August 2019, the Minister of Information and Communications, Nguyen Manh Hung took the parliamentary floor and stated that Facebook was restricting access to “increasing amounts” of content in Vietnam. Further, Hung stated that Facebook was complying with 70-75% of the Vietnamese government’s requests for post restrictions. In October 2020, this number went up to 95% for Facebook. Facebook acknowledged that the amount of content on which restrictions were imposed jumped by over 500% in the second half of 2018 alone.

Unlike China, Vietnam has adopted a relatively open attitude to western social media. Vietnamese politicians consider social media beneficial, perhaps it helps the promotion of their missions, personal agendas and even propagandas. In fact, Vietnam happens to have a military unit—called Force 47—with the purpose to correct “wrong views” on the internet. Whereas, there is no set set definition of the “wrong views,” people—if found guilty—can be jailed upto 20 years.

Furthermore, blocking western social media might not be in the self-interest of Vietnam, as doing so can hamper relations with the U.S.—with whom Vietnam desires to strengthen ties. The top communist strata of Vietnam for decades, have been single-minded on what they identify as “toxic information”. The definition of “toxic information” has only broadened over the years and has enabled the authorities to bend the term as per their whims. Vietnamese leaders have misused the threat of “toxic information” by branding content unfavorable to their regime with the term.

Facebook removed over 620 supposed fake accounts, over 2,200 links and several thousand posts which are deemed to be ‘anti-state’ from Vietnam in 2020. In a country without independent media, Vietnamese people are reliant on platforms like Facebook to read and discuss vital and controversial issues such as the dispute in Dong Tam. Dong tam is a village outside Vietnam’s capital, Hanoi, where residents were fighting the authorities’ plans to seize their farmlands in order to build a factory. 40-year-old Bui Van Thuan, a chemistry teacher and blogger, showed his solidarity to the fight and condemned the country’s leaders in one of his Facebook posts which stated “Your crimes will be engraved on my mind. I know you, the land robbers, will do everything, however cruel it is, to grab the people’s land.” On government’s insistence, Facebook blocked his account the very next day preventing over 60-million Vietnamese users from seeing his posts. A day later, Dong tam village was stormed by police with grenades and tear gas. A village leader and three officers were killed just as Thuan had anticipated. Thuan’s account remained suspended for three months after which Facebook informed him that the ban would be permanent. “We have confirmed that you are not eligible to use Facebook,” the message read in Vietnamese. Towards the end of murder trial held over the clash, a Facebook spokesperson said Thuan’s account was blocked due to an error and the timing of the lifting of restrictions was coincidental. The spokesperson denied censoring profiles as per the demands of the government. Thuan’s blacklisting illustrates how willingly Facebook submits to the authoritarian government’s censorship demands.

In April 2018, 16 activist groups and media organizations and 34 well-known Facebook users wrote an open letter to the CEO Mark Zuckerberg, accusing Facebook of assisting Vietnam to suppress dissenting voices. Force 47 or E47, a 10,000-member cyber unit was singled out in the letter. The letter called the unit “state-sponsored trolls” that spread misinformation about the Vietnamese pro-democracy activists.

Force 47 was deployed in 2016 by the state to maintain a “healthy” internet environment. The cyber unit took advantage of the very apparent loophole in Facebook’s community guidelines which automatically removes content if enough people lodge a complaint or report the post/account. The letter alleged that the government used Force 47 to target and suspend accounts or content.

According to a report by The Intercept, the modus operandi of E47 is that a member shares a target who is often a pro-democratic political dissident writer or activist. The information of the target who is nominated for censorship is accompanied with an image of the target with a red “X” marked over it. Anyone interested in victimizing the target needs to just report the account or post for violating Facebook’s pliant community standards regardless of whether the rules were actually broken. The E47 users are asked to rate the targeted page one out of five stars, falsely flag the post and report the page itself.  

Do Nguyen Mai Khoi, a singer and a pro-democracy activist, popularly known as “the Lady Gaga of Vietnam” has been tirelessly trying for over two years to get Facebook to care about the censorship in Vietnam. She has tried to get Facebook’s attention to the fact that groups like Force 47, a pro-government Facebook group of police, military, and other Communist party loyalists have actively been collaborating to suppress the voice of dissidents both offline and online. Her evidence has been substantial and her arguments carry ample clarity. Despite several interactions with Alex Warofka, a Facebook product policy manager for human rights, Mai khoi’s efforts have not been sincerely addressed. Instead, what they claimed was more infuriating. They said “We were not able to identify a sufficient level of community standards violations in order to remove that particular group (E47) or those particular actors.” Since E47 actors are under real names, photos and authentic identities, Facebook dismissed Mai Khoi’s evidence. “At a high level, we require both widespread coordination, as well as the use of inauthentic accounts and identity,” Warofka told Khoi.

Dipayan Ghosh, a former public policy advisor at Facebook and the co-director of the Digital Platforms & Democracy Project at Harvard’s Kennedy School stated:

“I think for Zuckerberg the calculus with Vietnam is clear: It’s to maintain service in a country that has a huge population and in which Facebook dominates the consumer internet market, or else a competitor may step in. The thought process for the company is not about maintaining service for free speech. It’s about maintaining service for the revenue.”

It wouldn’t be surprising to note that the inconsistency of Facebook’s ostensible community guidelines and policies extend beyond Vietnam. In 2016, during the time of political unrest in Turkey, access to Facebook and other social media were repeatedly restricted and further complied to the Turkish government’s request to restrict 1,823 pieces of content which the government deemed unlawful. In 2018, Facebook owned Instagram complied with demands of the Russian government to remove content related to opposition activist Alexei Navalny’s anti-corruption investigation therefore making it inaccessible for over 5 million users who watched and followed Navalny’s investigation. Facebook also routinely restricts posts that governments deem sensitive or off-limits in countries including Cuba, India, Israel, Morocco and Pakistan.

While the CEO of Facebook, Mark Zuckerberg, claims that the platform protects free expression, Facebook has been an active facilitator and flag-bearer of autocratic regimes. The social media giant’s apparent indifference and ignorance has failed its users terribly.

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April 13, 2021 7:47 AM

Are India's Antitrust laws effective at controlling monopolies?

On 15th of July 2020, Reliance Industries Ltd (RIL) held its annual general meeting of the shareholders. The chairman and managing director Mukesh Ambani, announced that global tech giant Google would be investing $4.5 billion in Jio Platforms. Facebook also has acquired a 9.99% stake in Jio Platforms. This is the first time in the world that both the global tech giants have invested in the same entity. These investments have boosted the confidence for Jio Platforms and also for India’s growth but there have been questions and speculations about the potential anti-competitive makeup of these deals.

The objective of this article is to explore the interpretation and the effectuality of Antitrust laws in India.

Anti-competitive practices are those business practices which firms engage in to emerge as the or one of the few dominant firms, who will then be able to restrict inter firm competition in the industry in a bid to preserve their dominant status. The Collins English dictionary defines antitrust laws as those laws that are intended to stop large firms taking over their competitors by fixing prices with their competitors, or interfering with free competition in any way. These laws focus on protecting consumer interests and promoting a competitive market. The word ‘Antitrust’ is derived from the word ‘trust’. A trust was an agreement by which stakeholders in several companies transferred their shares to a single set of trustees.

In present-day India, talking about market dominance Reliance Industries Ltd (RIL), resembles American company—John D Rockefeller's Standard Oil Company—of the early 20th century. Mukesh Ambani holds the highest ability to influence markets and policy in every sector in which RIL is present—petrochemicals, oil, telecom, and retail. Many industry experts and critics suggest that Ambani has used his political clout to twist the regulatory framework in his favor.

Gautam Adani, founder of Adani Group | Source: Twitter

Furthermore, economic power in aviation infrastructure is clustering into a few hands as well. In 2019, the Adani Group bagged the 50-year concession to operate all the six Airports Authority of India-operated airports—Lucknow, Jaipur, Guwahati, Ahmedabad, Trivandrum, and Mangaluru—which were put up for auction. The company also obtained a controlling stake in ‘The Chhatrapati Shivaji Maharaj International Airport, Mumbai’ from GVK Airports. Moreover, Adani Group is now set to construct the Navi Mumbai International Airport. The group is now eyeing Indian Railways while they have already established an alarming monopoly in green energy and sea ports. While Airports are natural monopolies, one private company controlling more than 8 important airports is not good news to airlines.

India has established antitrust laws to promote competition. For 40 years, India followed the Monopolies and Restrictive Trade Practices Act 1969 (MRTP). This act was based on principles of import substitution and a command-and-control economy. However, over time several amendments had to be made to the act. In 2002, the Indian approved a new comprehensive competition legislation. This is called the Competition Act 2002. The act focused on regulating business practices in order to prevent practices having an appreciable adverse effect on competition (AAEC) in India. The act primarily regulates three types of conduct: anti-competitive agreements (vertical and horizontal agreements), abuse of a dominant position, and combinations such as mergers and acquisitions. The act lists out the cartel agreements that it intends to prevent. This list includes price-fixing agreements, agreements between competitors seeking to limit or control production, market-sharing agreements between competitors and bid-rigging agreements. These agreements are called “cartel” arrangements.

The competition Act is enacted by the Competition Commission of India (CCI), which is exclusively responsible for the administration and enforcement of the Act. It comprises a team of 2 to 6 people appointed by the government of India. The CCI has previously handled high-profile cases. In 2018, CCI imposed a fine of Rs135.86 crore on Google on the grounds that Google misused its dominant position and powers to create a search bias. In another important case, the CCI, ordered a probe into Idea, Vodafone and Airtel when Reliance Jio owner Mukesh Ambani lodged a complaint against the three for forming a cartel and denying Jio the POI required for network connection, causing multiple call failures. The Cellular Operator Association of India was also probed for encouraging the same.

In some cases, the Competition Commission has been successful in tackling activities that are against the free competitive market. However, critics and economists believe that the act is now unable to adapt to the changing business environment in e-commerce, telecom, technology and the government’s role in distorting competition. Demonetization and GST drove the formalization of the economy. One consequence of them was that bigger, better organized players gained at the cost of smaller ones with lesser resources. The Insolvency and Bankruptcy Code (IBC) was designed to solve the problem of non-performing assets (NPAs) of banks. But consequentially, it has also led to a consolidation in many sectors.  

However, CCI has expressed inability to consistently adjudicate punitive measures due to obligation in several cases. This points to the loopholes in the very provisions of the Competition Act 2002. In an Economic and Political Weekly (EPW) article, Aditya Bhattacharjea—an Economist—argues that even though the 2002 Act represents an improvement from the MRTP Act which was extremely restrictive, the present act also remains riddled with loopholes and ambiguities. According to Bhattacharjea, this creates unnecessary legal uncertainty, which acts in advantage of lawyers and law firms. For instance, the act allows the CCI to leave some scope of flexibility for “relative advantage, by way of contribution to the economic development.” Bhattacharjea argues that this may allow large firms to justify their anti-competitive practices in the name of development.

Mark Zuckerberg and Mukesh Ambani having online interaction after Facebook invested in Jio Platforms | Source: NDTV

Data portability plays a significant role in determining market power of certain firms. In 2017, the CCI closed cases against both WhatsApp and Jio involving allegations of predatory pricing and privacy violations. In both these decisions, the regulator did not consider the restrictions around data portability as a competitive advantage. The possible data leveraging advantage for the attempted monopolization could be the ‘portfolio effect’. Portfolio effect refers to increasing the range of brands, by bundling of telecom or messaging service and other service offerings or illegal vertical restraints, even predatory pricing. This in turn may lead to greater ability of further leveraging, deterring innovation and results in degradation of quality. Another possible advantage is explained as the theory of leveraging. The best example of leveraging is when Microsoft entered the media-player market by extending its quasi-monopoly on the operating systems market by taking advantage of the indirect network effects. In case of Facebook acquiring 10% of Jio’s shares, it is a concern that both entities could potentially use WhatsApp’s market dominance in telecom and social networking services and establish dominance in e-commerce market through anticompetitive acts.

There was a consensus among Indian policymakers at the time of the 1991 economic reforms that economic liberalization would eliminate the nexus between the business elites and the policymakers. On the contrary, the relationship between these two groups got further strengthened.

On the other hand, few critics and industrialists argue that extreme restrictions on growing companies hampers the progressive growth of the national economy. While RIL’s Jio looks like a cause for concern, the company has also saved Rs. 60,000 crores for annual savings in India. In addition to that, the entry of Jio to the telecom industry has led to a rise in data consumption and improved accessibility and affordability of the internet across the nation.

However, the concern still lingers as the question of whether this growth is a result of actual innovation or crony capitalism remains unsolved.

However, the fact that telecom, organized retail, ports and airports have two or three players controlling the bulk of the sector needs to be addressed. A healthy competition is quintessential for long-term growth and innovation. Harmful trade practices and cartelization does not only affect small manufacturers but also the general public.

The government, CCI and other lawmakers must closely examine the present laws and provisions and need to see if they are required to amend the act.

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