The Wall Street Journal - 23.10.2019

(Steven Felgate) #1

THE WALL STREET JOURNAL. Wednesday, October 23, 2019 |A


F

orty-six state attorneys
general have joined Letitia
James, their New York
counterpart, in an anti-
trust investigation of Face-
book. Every presidential candidate in
last week’s Democratic debate
agreed that big tech companies have
grown too powerful and must be
humbled or diminished, if not broken
up entirely. This idea has gained
popularity across the political spec-
trum, with two-thirds of Americans
now saying they would break up Big
Tech. Although still a long shot, the


breakup campaign has spawned doz-
ens of antitrust probes against Ama-
zon, Apple and Google as well as
Facebook. And it has started a long-
overdue debate about Silicon Valley’s
sweeping influence.
But there are dangers in restruc-
turing any U.S. industry. One of the
most serious remains largely unrec-
ognized: national-security risk. De-
spite their faults, tech companies
contribute directly to American mili-
tary and intelligence operations.
Their titanic scale can itself be an
asset. Any responsible antitrust de-
bate must address the national secu-
rity risks of breaking up Big Tech—
and the parallel risks of keeping
these companies intact.


Americans love to hate


companies like Google and


Amazon, but Big Tech


serves strategic interests.


The Antitrust Threat to National Security


Consider cloud computing. The
Defense Department is planning a
massive global cloud called JEDI. Un-
like corporate clouds, the “war
cloud” must support life-or-death
missions on austere battlefields de-
spite virtual or physical onslaughts.
The Pentagon found only two eligible
bidders: Amazon and Microsoft.
Three defense secretaries, a federal
judge and the Government Account-
ability Office have upheld this bid-
ding process.
It is no coincidence the two eligi-
ble bidders have a combined market
value of $1.9 trillion. Vast resources
were needed to fund global networks
of hardened data centers linked by
undersea cables. The U.S. military’s
unique demands required companies
of unique scale. Yet one JEDI bidder
faces a concerted breakup campaign
(Amazon), and the other was nearly
dissolved in 2001 (Microsoft).
Scale also matters in intelligence
collection. The Foreign Intelligence
Surveillance Act compels U.S. com-
panies to hand over data on sus-
pected foreign agents. U.S. intelli-
gence analysts increasingly rely on
FISA to monitor terrorist communi-
cations or warn of cyberattacks.
Tech giants have particular FISA
value because their sheer popularity
attracts users from around the
world, including hostile actors. The
largest tech companies provide some
of the fastest-growing intelligence
streams.
Splitting up Big Tech would re-
duce its intelligence value. First,
smaller companies would lose global
market share to foreign rivals such as
Alibaba or Baidu, which can ignore
FISA. Small U.S. sites can’t leverage
the “network effect,” a gravitational

force that helps large sites stay domi-
nant. Intelligence collected from
small sites would also be less useful.
They see only narrow slices of online
activity, whereas tech giants track
users across sprawling internet eco-
systems. Dismantling these ecosys-
tems would put greater burden on in-
telligence agencies to “connect the
dots” of potential threats.
But national security cuts both
ways in the antitrust debate. Silicon
Valley giants have taken many actions
that contravene U.S. interests, then
relied on their clout to avoid account-
ability. Social-media platforms have
given terrorist groups a new way to
radicalize recruits and enabled for-
eign governments to covertly influ-
ence the general public. These actors
exploit algorithms that make sensa-
tional content go viral—a result of
decisions by Facebook and YouTube
to maximize user engagement.

Granted, defining the bounds of
acceptable content is no easy task.
But tech titans keep failing in basic
ways: auto-generating terrorist
pages, hobbling analysis of influence
campaigns, shunning democratic
scrutiny. Such negligence stems from
unaccountable power.
Big Tech has also contravened
U.S. interests on China. American
companies should exercise great
care to avoid helping Beijing leap-
frog the U.S. military or perfect digi-
tal repression. Glib platitudes—“AI
and its benefits have no borders,” as
one Google executive put it—do not
justify Google’s establishment of a
Chinese research center. Dubious as-
sertions and discredited theories
can’t excuse Apple’s censorship of
Chinese apps. U.S. tech titans often
fall short of the serious due dili-
gence they owe in matters of na-
tional interest.

So we face a dilemma: Big Tech
has both helped and hindered na-
tional security. How can America
protect its military and intelligence
posture while also addressing legiti-
mate antitrust concerns?
First, broad concerns about “big-
ness” should be distinguished from
specific claims of anticompetitive
conduct. Abusing market position to
suppress rivals is illegal and unac-
ceptable. Bigness itself is more com-
plicated. Any remedy for unlawful
behavior—especially breakups—
should be tailored to protect na-
tional security.
Second, federal authorities should
remain firmly in charge of Big Tech
antitrust cases. State governments
can offer investigative support, but
they should ultimately defer to
Washington—which is better
equipped to evaluate national-secu-
rity consequences.
Third, Congress should invite na-
tional-security experts to testify on
possible fallout from breaking up
tech giants. Lawmakers might also
create formal channels for the mili-
tary and intelligence community to
communicate with antitrust enforc-
ers, with safeguards against politi-
cizing law enforcement.
No Big Tech breakup plan should
be taken seriously if it ignores na-
tional security. Likewise, no tech
company should distract us from ir-
responsible behavior by simply
waving the flag. Big Tech presents
problems, to be sure, but the an-
swer isn’t simply to turn it into
Small Tech.

Mr. Bateman is a fellow at the
Carnegie Endowment for Interna-
tional Peace.

By Jon Bateman


ASSOCIATED PRESS
New York Attorney General Letitia James is investigating Facebook.

OPINION


The Picket Line Makes a Comeback


President Trump
has been mostly
quiet about the
standoff between
General Motors and
the United Auto
Workers. Since he’s
known for building
hotels and not con-
sensus, that’s prob-
ably a good thing.
But these labor dis-
putes aren’t going away. Work stop-
pages have risen sharply in recent
years and the number of workers
who have been idled is approaching
levels not seen since the 1980s.
The U.S. Labor Department re-
ports that there were 20 major
strikes in 2018, the most since 2007,
and they are growing in size as well
as frequency. Some 485,000 people
were involved in labor strikes last
year, the highest number in 32
years. The walkouts haven’t been
limited to a certain industry or re-
gion. They’ve involved hospital
workers, educators and hotel staff
and have taken place in states as di-
verse as California, Oklahoma and
Vermont. While public-sector unions
have led the way, their private-sec-
tor counterparts have been agitat-


ing, too, as GM can attest.
On one level, this isn’t surpris-
ing. We’re in the 10th year of an
economic expansion and unemploy-
ment is at a 50-year low. When la-
bor markets are this tight, employ-
ees gain more leverage. Labor
unions gamble that management
will have a tougher time finding re-
placement workers in such an envi-
ronment if their demands aren’t
met. But something else may be go-
ing on here. In all of 2017 there
were just seven major work stop-
pages in the U.S., the second-lowest
number since 1947. Through Sep-
tember of this year, there had al-
ready been 20.
Part of this phenomenon can be
traced to the 2018 midterm elec-
tions. In addition to gaining control
of the House, Democrats flipped
more than 300 state legislative
seats and won gubernatorial races
in key states that Mr. Trump had
carried in 2016, such as Wisconsin
and Michigan. These Democratic
victories bolstered Big Labor’s al-
ready considerable political clout
and mobilized union leaders every-
where.
The other major development
was last year’s Supreme Court rul-

ing in Janus v. Afscme , which held
that government employees who
don’t want to join a union can’t be
forced to contribute money to it
anyway. Public-sector unions be-
came a major force in politics pri-
marily because of laws and wrong-
headed court decisions that allowed
them to coerce dues from workers.

The Janus ruling was a body blow,
and labor leaders responded with
work stoppages, expanded recruit-
ment efforts and earnest attempts
to frame their activism as a boon
for society, not just themselves.
Randi Weingarten of the Ameri-
can Federation of Teachers said last
year that her political agenda now
extends well beyond the interests of
educators. It’s also about “stoking a
movement for social justice, for
workers’ rights, for women’s rights,
for civil rights,” among other causes.

The AFT and its sister organization,
the National Education Association,
have millions of members and thou-
sands of state and local affiliates.
Since 2018 they have orchestrated
walkouts in at least 10 states and
dozens of school districts. When
teachers in Los Angeles walked off
the job in January of this year, sanc-
tuary protections for illegal immi-
grants were part of the collective-
bargaining negotiations.
These new tactics are currently
on display in Chicago, where teach-
ers in the nation’s third-largest
school district are striking for the
second time since 2012. The union
wants higher salaries, of course, but
it’s also demanding that any new
contract address issues like crime
and income inequality. The Wall
Street Journal reports that the Chi-
cago Teachers Union “has empha-
sized social issues during talks” and
“wants the city to increase funding
for affordable housing and for
homeless liaisons to be provided in
schools.”
Poverty, homelessness and illegal
immigration are real concerns that
deserve serious attention, but when
public-sector unions want to make
them part of contract negotiations

over wages and benefits, something
else might be going on.
Mike Antonucci, an education
journalist who has been writing
about teachers unions for decades,
speculates that the CTU’s real con-
cern is flagging membership. As
the number of students enrolled in
Chicago public schools has de-
clined, so has the number of people
the school system employs. The
“big issue is staffing—more teach-
ers, social workers, counselors,
nurses, clinicians, case managers,
librarians and restorative justice
coordinators and 1,000 additional
teaching assistants,” Mr. Antonucci
wrote recently. “It is no coinci-
dence that virtually all of these
new employees would be eligible
for union membership.”
The increase in school disrup-
tions isn’t about poverty or home-
lessness or even students. It’s about
expanding the reach of collective-
bargaining agreements that give la-
bor unions access to more taxpayer
dollars without voter approval. And
it’s about the desperate search for
members in a post- Janus world
where public-sector unions can no
longer bully people into paying
them.

Enraged by Trump and
energized by the Janus
ruling, unions turn to
an old familiar tactic.

UPWARD
MOBILITY

By Jason L.
Riley


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Impeachment Trumps Executive Privilege. Ask George Washington


P


resident Trump has refused to
cooperate with the “official im-
peachment inquiry” Speaker
Nancy Pelosi announced last month.
One line of defense is executive priv-
ilege, a principle holding that certain
executive-branch communications,
especially related to diplomacy, may
be kept from Congress. The White
House says the privilege limits the
testimony of former officials, and
Mr. Trump’s personal lawyer, Rudy
Giuliani, cited it in refusing to com-
ply with a subpoena.
Mr. Trump and his defenders say
the inquiry is unlawful because the
full House has not passed a resolu-
tion authorizing it. If the courts hold
otherwise or the House does pass
such a resolution, evidence from the
Founding era strongly suggests that
the president’s assertion of executive


privilege will necessarily fail.
When drafting the Constitution’s
Impeachment Clause, the Framers
had a specific historical episode in
mind. In 1649 the English House of
Commons impeached King Charles I
for treason. Charles was alleged to
have unlawfully subverted English
democracy, and the final article of
impeachment charged that he col-
luded with England’s foreign adver-
saries in his campaign against his
domestic political rivals.
Proving that last charge required
an inquiry into Charles’s diplomatic
communications. Much of his trial
devolved into a tedious debate over
whether he could assert the king’s
ordinary privileges and immunities.
At one point Charles infamously in-
sisted that he was immune from im-
peachment altogether because “the
kingcandonowrong.”
Charles lost this debate. His per-
sonal “Papers and Letters” were all

taken as evidence. His secretary was
compelled to testify about his nego-
tiations with England’s foreign ad-
versaries. Within a month of being
impeached, Charles was found guilty
and beheaded.
During the Constitutional Conven-
tion, Benjamin Franklin cited this ex-
ample “of a first Magistrate being
formally brought to public Justice”
as reason to include an impeachment
clause in the Constitution. James
Madison agreed, noting the need “for
defending the Community against
the incapacity, negligence or perfidy
of the chief Magistrate,” who “might
betray his trust to foreign powers.”
Others favored the inclusion of an
impeachment clause so that no
American president would ever claim
he could “do no wrong.” Less blood-
thirsty than the House of Commons,
the Framers limited the maximum
punishment for an impeachable of-
fense to political death—removal and

disqualification from office.
The first major conflict between
the president and the House erupted
in 1796 over executive privilege.
George Washington had just con-
cluded the so-called Jay Treaty, nor-
malizing trade with Britain. The Brit-
ish were at war with the French, who

were understandably furious that the
revolutionaries they’d sponsored
would link themselves to their en-
emy. This sentiment was widely
shared in the U.S., and the House de-
manded that the Washington admin-
istration turn over internal papers

related to its negotiation.
After a week’s deliberation, the
first president refused the request in
a letter to the House that most legal
scholars consider the first invocation
of executive privilege. “The nature of
foreign negotiations requires cau-
tion, and their success must often
depend on secrecy,” Washington
wrote. “To admit, then, a right in the
House of Representatives to demand
and to have as a matter of course all
the papers respecting a negotiation
with a foreign power would be to es-
tablish a dangerous precedent.”
Yet Washington carved out a ma-
jor—but often overlooked—excep-
tion. “It does not occur,” he wrote,
“that the inspection of the papers
asked for can be relative to any pur-
pose under the cognizance of the
House of Representatives except that
of an impeachment, which the reso-
lution has not expressed.” All four
cabinet secretaries emphasized in
writing that such an exception would
be necessary. As Treasury Secretary
Oliver Wolcott wrote, the House
would have a right to the papers
“when an Impeachment is proposed
& a formal enquiry instituted.”
Presidential impeachment inqui-
ries have been rare, and none have
focused on the abuse of the presi-
dent’s diplomatic powers. In this
context, the Framers’ views deserve
exceptional weight. Can the presi-
dent assert executive privilege to
withhold diplomacy-related commu-
nications from the House in a lawful
impeachment inquiry? The Founding
era sources make clear the answer is
no. If a president’s diplomatic com-
munications might have evidence of
impeachable conduct, Congress is
entitled to see them.

Ms. Galbraith is a professor at the
University of Pennsylvania Law
School. Mr. Paradis is a lecturer at
Columbia Law School.

By Jean Galbraith
And Michel Paradis


Charles I tried to withhold
records, saying ‘the king
candonowrong.’The
Framers had another view.

Mark Hemingway writing for the
Federalist, Oct. 21:

While we all sit on pins and needles
trying to suss out the details of [Eliza-
beth] Warren’s Medicare For All plans,
the fact that her vision of America...
is bearing fruit isn’t just a matter of
Warren having different ideas about
policy. It’s the culmination of a pro-
gressive project lasting over a century
that, charitably speaking, puts for-
ward a vastly different understanding
of human nature and morality than
most Americans subscribe to, and was
part of a deliberate plan to erode con-
stitutional restraints by undermining
the “norms, values, standards and
soul of this country.”
So then, do we live with Trump,
who lays bare all the problems with

what happens when naked self-inter-
est collides with power? Or do we tell
ourselves some “regulative fiction”
that pretends those who populate our
sprawling administrative state are
somehow above their own selfish im-
pulses and can be counted on to act
in the best interests of voters, when
that is plainly untrue?...
If you’re wondering how Trump
voters can continue to ignore
Trump’s issues, it’s not even obvious
to lots of voters that Trump oppo-
nents and D.C. institutionalists such
as Sen. “Pow Wow Chow” Warren,
Hillary “Lay off Weinstein” Clinton,
and Adam “I have more than circum-
stantial evidence Trump colluded
with Russia” Schiff are an obvious
contrast to Trump even as a matter
of personal corruption.

Notable & Quotable: Norms

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