Axios: Facebook, Google hurt communities, group says
Facebook and Google are hollowing out local communities by serving as vectors for misinformation while hobbling local journalism and collecting taxpayer subsidies, a new paper from progressive think tank the American Economic Liberties Project charges.
The big picture: Both companies cite benefits their platforms offer small businesses as a key defense against critiques of their size and power. The paper, dated Aug. 30, is sure to presage further scrutiny of the impact they’ve had on local communities.
Details: The brief, by Pat Garofalo, the group’s director of state and local policy, argues that:
- Google doesn’t do enough to protect against fraud, allowing scammers to get their own numbers and websites listed on Google to the detriment of legitimate businesses.
- Facebook, by design, boosts shoddy and sensationalist content, crowding out legitimate local news and information, all as it and Google have come to dominate the local advertising market that was long the lifeblood of community journalism.
- Both have sucked up potentially billions in local taxpayer dollars via tax breaks as well as subsidies and discounts on utilities they’ve gotten in exchange for building data centers.
Garofalo recommends remedies including more antitrust enforcement at the federal and state levels and an end to preferential treatment by states and localities, either voluntarily or under force of law.