The video explores the growing concern over industry concentration, particularly in the United States from 2005 to 2020, where market concentration has increased dramatically, especially post-COVID. The discussion highlights examples from pharmaceuticals, meatpacking, agriculture, and the technology sector, all underscoring the risks posed by excessive market power moving into the hands of fewer companies. The speakers agree that such concentration threatens the principle of freely operating markets and poses wider risks regardless of the industry.

The focus then shifts to the tech and AI sectors, where monopoly power and concentrated economic control are discussed as acute threats not just to fair competition, but also to personal liberty. The examples highlighted include debanking, deplatforming, and the proliferation of non-compete clauses, which limit consumer and worker choices. Additional concerns center on the unique dangers AI monopolies present—such as privacy violations, deepfake technology, and uncontrollable data use—that current legal and regulatory tools struggle to address.

Main takeaways from the video:

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Key Vocabularies and Common Phrases:

1. Concentration (Industry/Economic) [ˌkɑːnsənˈtreɪʃən] - (noun) - The act or state of companies in a particular industry merging or growing so that fewer firms control a larger share of the market. - Synonyms: (aggregation, centralization, consolidation)

From 2005 to 2020, industry concentration increased in the United States by 50%, particularly accelerating post Covid.

2. antitrust [ˌæntiˈtrʌst] - (adjective / noun) - Laws and policies designed to promote competition and prevent monopolies in markets. - Synonyms: (competition law, fair trade law, anti-monopoly regulation)

Would you agree that from an antitrust perspective, this is something to be concerned about?

3. monopoly [məˈnɑːpəli] - (noun) - A market structure where a single company or group has exclusive control over a commodity or service. - Synonyms: (dominance, cartel, exclusive control)

Concentration that leads to monopoly power in any industry is a cause for concern when it comes to freely operating markets.

4. duopoly [duːˈɑːpəli] - (noun) - A situation where two companies or entities dominate a particular market or industry. - Synonyms: (bicameral dominance, twin monopoly, two-party system)

Much easier to do that when you have a duopoly.

5. deplatforming [diːˈplætfɔːrmɪŋ] - noun / verb (gerund) - Removing or banning users or organizations from a platform (especially social media or tech services), often for violating rules or policies. - Synonyms: (banning, removal, exclusion)

So as an example, the business of debanking and deplatforming in both the banking sector and the tech center sector for that matter, is something that we've seen with increasing frequency in the past five years.

6. nascent [ˈnæsənt] - (adjective) - Recently started or developed and likely to grow bigger; emerging. - Synonyms: (emerging, budding, beginning, fledgling)

So we're still in the very early stages of AI. As you know, it's a nascent technology, a nascent industry.

7. deepfake [ˈdiːpfeɪk] - (noun) - An artificial intelligence technique that synthesizes or superimposes visual and audio content to create realistic but fake images or videos. - Synonyms: (synthetic media, manipulated media, AI-generated content)

Whether it is the creation of deepfake pornography where people are able to use the technology, go get someone's picture off of the Internet, a child's picture from Facebook, and then use it to create pornographic images, nothing that a parent can do to stop it, nothing that a victim can do.

8. Redound (To) [rɪˈdaʊnd] - (verb) - To contribute greatly to (a person’s credit or benefit). - Synonyms: (contribute, result, accrue)

And sometimes we hear stories about how AI is going to redound to the benefit of workers

9. Sledgehammer (Metaphorical Sense) [ˈslɛdʒˌhæmər] - (noun) - A tool for heavy impact, used metaphorically to mean a blunt or forceful approach, contrasting with a more precise or nuanced method. - Synonyms: (blunt instrument, heavy-handed approach, brute force)

antitrust is a scalpel, regulation is a sledgehammer.

10. deflect [dɪˈflɛkt] - (verb) - To turn aside or redirect something, especially criticism, attention, or action. - Synonyms: (divert, sidetrack, avert)

It can lead to is it can deflect the need for regulation, which again, I liken this to antitrust is a scalpel, regulation is a sledgehammer.

11. enshrine [ɛnˈʃraɪn] - (verb) - To preserve or cherish as sacred; to officially protect or uphold a value, right, or institution. - Synonyms: (preserve, uphold, safeguard, sanctify)

You talk about enshrining a group of robber barons at the expense of the American people.

Hawley Asks Trump DOJ Antitrust Nom About Breaking Up Big Tech, Defending Americans From Harmful AI

Miss Slider, let me give you a chance to do a little bit of talking. We are living through, it's fair to say, I think, a wave of concentration in industry. From 2005 to 2020, industry concentration increased in the United States by 50%, particularly accelerating post Covid. Would you agree that from an antitrust perspective, this is something to be concerned about? Senator, I haven't seen this chart before, but I have no reason to disbelieve its accuracy. And I would agree that that is a troubling number. We've seen industry concentration in pharma, which Senator Grassley talked about. We've seen it in meatpacking, which is particularly important in my state to our agricultural producers, our ranchers and our farmers. We've seen it in other aspects of agriculture.

Would you agree that concentration, it doesn't matter which industry it's in, concentration that leads to monopoly power in any industry is a cause for concern when it comes to freely operating markets. Is that fair to say? Yes, Senator, I refer you back to my opening statement. Yes, and that would include the tech sector. In fact, just looking at concentration in tech, the standard that the Department of Justice historically uses to measure concentration now has that concentration level as high as it has ever been in the tech sector as of 2023, in the 99th percentile. You spoke eloquently in your opening statement about the dangers to personal libert liberty that comes from the concentration of economic power. Is that also true in the tech sector? Is it fair to say that a concentration of power in the tech sector is also a threat to personal liberty, as it would be in any other sector? Is that fair to say? Yes, Senator, I think there are a growing number of conservatives in particular, but also Democrats who see the exercise of private power as connected to the economic power of the companies involved. I think that's a fair statement in general. And why is it just. If you could tell us a little bit more about why concentrations, economic concentrations in the hands of private monopolies can be a threat to personal liberties. Why is that something we should be particularly concerned about, maybe especially in this age of tech concentration?

So as an example, the business of debanking and deplatforming in both the banking sector and the tech center sector for that matter, is something that we've seen with increasing frequency in the past five years. It could provide some concrete examples, but I know you're aware of them as are. As is probably everybody in the room. And I think that a lot of people see that kind of de platforming that kind of debanking as a function of there being perhaps only two players in a given industry. Much easier to do that when you have a duopoly. Yeah. In other words, if you have a concentration of market power in one or two or maybe three hands, then the agenda that the monopolist wants to pursue, whether that's an agenda related to price fixing or price gouging, or whether that's an agenda that has more of a political valence. You were just saying maybe they'll censor speech. Maybe they'll say if you have particular ideological commitments, you supported President Trump, you're not welcome to bank with us. That becomes quite acute when you effectively don't have any other choices. Is that fair to say? In layman's terms, yes, Senator. And you are far beyond a layman in antitrust terms, of course. I mean, another practical application of the kind of conduct we're describing is non competes. This is just to de politicize and de conflict the issue. This is a growing practice. It's of concern in many parts of the country. It prevents workers from switching jobs easily. And that's something that I think is also quite prevalent in markets that are highly concentrated. Is there any reason to think that the concern over the concentration in tech in particular and its effect on personal liberty would be diminished in any way in the age of AI?

So we're still in the very early stages of AI. As you know, it's a nascent technology, a nascent industry. And so I wouldn't want to make that call just yet, frankly, Senator. But I think there are commentators who do see the emergence of highly concentrated markets in parts of the AI technology stack. Well, I can tell you I'm extremely concerned about it. I'm extremely concerned about what the emergence of AI and monopoly power in AI will mean for American consumers. Senator Blumenthal and I worked together the last two years on our subcommittee here as part of the Judiciary Committee, hearing from people like Sam Altman. And what we discovered is in issue after issue, whether it is the ability of parents to protect their children's personal information virtually impossible in the age of AI, when these companies are scooping up every piece of data and there's nothing a parent can do to stop it, whether it is the creation of deepfake pornography where people are able to use the technology, go get someone's picture off of the Internet, a child's picture from Facebook, and then use it to create pornographic images, nothing that a parent can do to stop it, nothing that a victim can do. To stop it. Nothing that virtually any of us can do to protect our personal data at all. And where is this power concentrated? It's in the very few hands of the people who control AI.

And sometimes we hear stories about how AI is going to redound to the benefit of workers. I hope that's true. But who it's redounding to the benefit of right now, for sure, is the major technology companies, the monopolists, who largely control this sector. So let me just ask you, broadly speaking, what is it that antitrust enforcement can do when it comes to unwinding concentration to protect personal liberty? Well, as I discussed with Senator Lee, I think one important outcome it can lead to is it can deflect the need for regulation, which again, I liken this to antitrust is a scalpel, regulation is a sledgehammer. And I think that often will lead to, well, almost certainly will lead to more competition and freer markets, and that in turn will drive new entry and increased innovation in those markets. You know, I think you've got this exactly right. I mean, preventing power imbalances, where one or two or three monopolists or near monopolists control all of the information, they stifle competition. The real problem with that is, besides the fact it can impose increased costs and harms on consumers, there's a massive power imbalance between these companies and average, normal working Americans. And to me, I see what you're going to do, which is very important in antitrust. antitrust enforcement helps unwind those power concentrations and gives more power to individual Americans.

And I will just say now, if you'll allow me just a moment to editorialize, you don't have to comment on this. I think it's absolutely vital that this body do everything we can to put more power back into the hands of individual Americans. You talked about how antitrust suits can be a scalpel. Enforcement suits can be a scalpel. Why not put that scalpel in the hands of everyday Americans? Why not open the courtroom doors against these technology companies in particular, including these AI companies, to allow normal Americans, everyday Americans, to bring suit against them, to, to defend their own rights in their personal information, in their children's information? That I think is such a common sense solution. Do you know, when Sam Altman sat where you're sitting, Mr. Slater, and I asked him about this, he said to me, in all seriousness, under oath, he said, wait a minute, are you saying that we can't be sued right now? You're saying that a technology company can't be sued? And I had to walk him through the fact that, in fact, there's a massive liability shield that Congress has given these technology companies. A shield nobody else gets. Special privileges nobody else gets. You talk about enshrining a group of robber barons at the expense of the American people. This has got to change. We have got to give power back to individual Americans to protect their rights. And antitrust enforcement by the US Government is a critical part of that. So I look forward to your work in this area. And with that, I recognize Senator Klobuchar.

ANTITRUST, TECHNOLOGY, ECONOMICS, AI REGULATION, PERSONAL LIBERTY, MARKET CONCENTRATION, SENATOR JOSH HAWLEY