Legacy regulatory practices won’t rein in tech giants

 Legacy regulatory practices won’t rein in tech giants

The French Competition Authority hit Google with a $593 million fine this week for failing to negotiate with publishers over news content it uses and profits from. But one expert said what the fine reveals about regulation is bigger than the fine itself. 

For tech giants like Google that earn hundreds of billions of dollars in revenue annually, $593 million is insignificant, said Thomas Jungbauer, assistant professor at the Cornell University SC Johnson College of Business. Jungbauer added that fines like this suggest tried-and-true practices for keeping business monopolies in check may have worked for railroad and telecommunications companies 40 years ago but don’t work to keep tech giants in line.

“There is no company in the world that is not hurt by a fine of half a billion dollars, but it’s not a number that’s going to affect Google and its livelihood as a company,” Jungbauer said. “What we just saw in France is part of a…

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