Competition Disruption Key to Privacy Bill Debate, FTC’s Phillips Says

Congress will need to decide how much it’s willing to disrupt competition when crafting privacy legislation, FTC Commissioner Noah Phillips said in an interview for C-SPAN's The Communicators, to have been televised Saturday: While lawmakers want to protect consumers, they must keep in mind that regulatory schemes can harm competition and entrench incumbents. “That may be worth it,” Phillips said. “It may be that the problem we’re solving is such that we’re willing to take a little competition out of the market, but it’s something that we need to keep in mind.” Determining these “value judgments” should come first before deciding whether the FTC needs better privacy authority, he said. “That a firm is large under our law doesn’t necessarily make it a bad firm. It doesn’t make its conduct illegal,” he said. Sometimes, firms illegally protect their position in the market, and that’s something the FTC should monitor, he noted. Phillips warned against using antitrust law to address claims that platforms are favoring content based on ideology, noting he's not sure his agency has a role there.