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Many conservatives fret over Trump's war on tech giants
By Rob Lever
Washington (AFP) Sept 11, 2018

Alibaba's Zhang prepares to step from Jack Ma's shadow
Shanghai (AFP) Sept 10, 2018 - Both in personality and skillset, Alibaba's Daniel Zhang will herald a new era for the Chinese e-commerce giant when he takes over full leadership from charismatic founder Jack Ma.

Ma announced Monday that in exactly one year he will hand the executive chairmanship of Alibaba's board to Zhang, CEO since 2015.

Outwardly at least, their differences could not be more stark.

Former English teacher Ma, 54, has become a globally recognised figure through his constant travel and playful antics such as impersonating Michael Jackson at a company event last year.

Zhang, 46, on the other hand, is a mild-mannered accountant with a calm, collected demeanour.

But Zhang is routinely referred to by Chinese media as the man who transformed Ma's sturdy little "tractor" into a "Boeing 747", and analysts say he is more than up to the task.

Hailing from the commercial hub of Shanghai, Zhang studied finance at Shanghai University of Finance and Economics.

He was a senior manager at global auditor Price Waterhouse Coopers and chief financial officer of a Chinese online games company before joining Alibaba in 2007 as CFO of its main online marketplace Taobao.

Zhang is credited with building Alibaba's Tmall business-to-consumer platform into one the group's most successful arms, and creating the annual November 11 "Singles' Day" online shopping bonanza, China's biggest retail day of the year.

Launched in 2009 as China's answer to the US "Black Friday", "Singles' Day" last year saw more than $25 billion worth of goods snapped up on Alibaba platforms, up nearly 40 percent year-on-year.

Billions of dollars more were boughts via Alibaba's e-commerce rivals, who have joined in.

- 'Wicked smart' -

In many ways Zhang has been in charge since becoming chief operating officer in 2013 and CEO in 2015, with Ma stepping back and acting as more of a figurehead.

Under Zhang's tenure Alibaba has moved from PC-based transactions to mobile-based, which now account for nearly 80 percent of total gross merchandise volume.

With revenues surging, Alibaba's stock has soared nearly 90 percent. It is now one of the world's most valuable companies with a market capitalisation of about $420 billion.

Within Alibaba's tight-knit culture, staff each take on nicknames based on Chinese martial arts figures thought to represent their skills and methods.

Zhang's is a character known for staying out of battles, but training unbeatable proteges.

"Jack Ma is incredibly charismatic. Daniel Zhang is not. He's super smart, but when he gives a press conference -- it's not really his thing," said Jeffrey Towson, author, investor and business professor at Peking University.

"But they (the management team) are all wicked smart. This is a top-tier management team."

Zhang is a professed fan of basketball and football. Chinese media say he is a devoted follower of English club Arsenal.

Under Zhang, Alibaba has poured investment into various new initiatives including bricks-and-mortar retail, cloud computing, digital media, the grocery sector, meal delivery and advertising.

In August, it teamed with Starbucks to capitalise on China's growing coffee addiction and in April completed the acquisition of Chinese food-delivery leader Ele.me, among other deals.

"In the world of business, the excitement never ends, the competition never ends," Zhang said in an interview earlier this year.

"You must keep awake every minute; you need to keep your eyes open in your sleep. You must keep learning and innovating."

President Donald Trump's simmering war against Silicon Valley is raising concerns, notably among conservatives, about a politically motivated crackdown on tech firms that could damage free speech protections.

The attacks from the White House coincide with a Justice Department announcement that it would convene talks on whether social media firms are "stifling" speech or harming competition, and precedes a series of hearings by regulators to review how antitrust laws apply to digital giants.

Trump in recent days has stepped up his attacks on the tech industry, claiming that Google suppresses conservatives and promotes "left-wing" news sources and then issuing a vague warning to Facebook, Google and Twitter to "be careful."

Trump's criticism of political bias was echoed by some Republican lawmakers at hearings on Capitol Hill featuring Twitter and Facebook top executives.

The prospect of a legal crackdown on Big Tech has industry leaders understandably worried, but many conservative activists are also worried about punishing one of America's most important industries for political reasons.

- Constitutional confusion -

John Samples, vice president of the libertarian Cato Institute, said the Trump administration in claiming "censorship" is misapplying the constitution's First Amendment free speech protection.

"The First Amendment sharply limits government power over speech. It does not limit private governance of speech," Samples said in a blog post.

"Government officials bullying private companies contravenes a culture of free speech. Needless to say, having the Justice Department investigate those companies looks a lot like a threat to the companies' freedom."

Randolph May, president of the Free State Foundation, a think tank that supports a deregulatory agenda, also warned against a government effort to regulate algorithms like those that Google uses.

"It would be unwise, as a matter of policy, to lodge the power to police search neutrality in the government's hands," May said in a column for the Washington Times.

"Because search results may be manipulated easily by those who design the algorithms, it would be foolish to risk giving government officials control over them. The temptation for government to abuse this power to promote its own messages -- its own version of what is most 'relevant' -- is evident."

American Enterprise Institute fellow James Pethokoukis said Trump and his allies may not have considered what type of precedent he could set if one of his political opponents wins the White House.

"Have they thought about the possibility that, say, president Elizabeth Warren might latch onto the latest Trumpopulist thinking to create a Federal Internet Platform Commission to regulate the sector?" Pethokoukis said in a blog post.

- Antitrust as a weapon? -

The spectacular growth of Big Tech in recent years has sparked talk of antitrust action, but Trump's sharp attacks have raised fears that any enforcement would be for political reasons.

"Certainly antitrust scrutiny is to be expected at this point when these companies are so big," said Eric Goldman, co-director of the High-Tech Law Institute at Santa Clara University.

"But this could be the first step in a broad effort by the government to subvert the First Amendment under the guise of antitrust."

Among those warning the administration was Americans for Prosperity, the conservative political group created by billionaires David and Charles Koch.

"Antitrust laws exist for the good of American consumers, not to further the political interests of public officials," said the association's policy manager David Barnes.

"The Justice Department should not wield its authority to subjectively pick winners and losers in the tech industry or to police free speech. Using threats of antitrust or other enforcement as a political weapon should be cause for concern for every American."

Ed Black, president of the Computer & Communications Industry Association, a trade group that includes Google and Facebook, also expressed concern about politics tainting the antitrust process.

"We think antitrust is so important that it should not be politicized or turned into a political tool for other ends," Black told a conference call.

The Federal Trade Commission, which shares antitrust authority with the Justice Department, last month announced it would review all aspects of enforcement.

The review will include the "consumer welfare" standard -- a precedent that has largely avoided prosecuting firms for monopoly practices as long as consumers are not harmed.

Michael Carrier, a professor of antitrust law at Rutgers University, said abandoning the consumer welfare standard may be problematic, with courts likely to be circumspect.

"The difficulty with abandoning this standard is that there is no ready-made framework to replace it and I can't see courts adopting a more robust (and less consumer-friendly) framework," Carrier said.


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CYBER WARS
China blocks Australian state broadcaster's website: ABC
Sydney (AFP) Sept 3, 2018
China has blocked access to the website of Australia's national broadcaster for breaching Beijing's internet rules and regulations, ABC said on Monday. It comes a year after the Australian Broadcasting Corporation began running a Chinese-language service. ABC said access to its website and apps was blocked on August 22 and it has since been trying to find out why. After repeated requests for clarification, an official from China's Office of the Central Cyberspace Affairs Commission dictated ... read more

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