Once-Beloved Tech Companies Suffer 'Shocking Flip' in Sentiment, NCTA's Powell Says
Big tech companies -- which just a couple of years ago could do no wrong in Washington's and the public's eyes -- today are suffering from an unprecedented change of favor, NCTA CEO Michael Powell said in an interview for…
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C-SPAN's The Communicators that was to have been televised this weekend. The "shocking flip" since around the 2016 election is "the biggest whiplash I have ever seen in policy or public sentiment," Powell said. He said some of that reversal "is probably overdone, but all of it is overdue" since those companies have been allowed to become central in the economy without enough scrutiny. The backlash was inevitable and tech power will define antitrust issues for years to come, Powell said. It's a mistake to lump disparate companies like Apple, Amazon, Google and Facebook together given their very different businesses and approaches, and they have to be looked at case by case, he said. A breakup of any seems unlikely at least in the near future, given the legal hurdles and challenges of proving consumer harm when talking about what are often free services, he said. The tech giants' pushes into over-the-top video is leading to cord cutting at a 3-4 percent annual rate, though the legacy cable business "is not on the verge of collapse or vanishing," Powell said. But since the tech companies' primary businesses lie outside video, in areas like internet search or online retail, "They're not really our direct counterparts, they're radically different things" focused on data, he said. Long term, that means " a dramatic revolution" in how services are provided and it could be difficult to compete in some areas without access to that kind of data, Powell said. The Internet Association didn't comment Friday. Powell said all video providers need to be "harmonized" under an overall regulatory philosophy by Congress. He said the differing approaches and rules regimes for legacy providers and new competitors is "an accident of history," with the regulatory structure easily gamed against legacy providers. Asked if video is on the way out, Powell said "the centrality of internet is what's on its way in." And though the video part of the business is "in transition," the industry's 10G initiative (see 1901070048) "is a pretty big statement" of confidence in cable's longevity, he said.