Hereby are two stories about how software acts as a barrier to entry to a market and reinforces the monopoly power of its provider.

The first is shown by the fact that industrial content are getting cold feet over the EU copyright directive as the service providers have switched to supporting Article 13 since they already have the so-called “upload filters”. Only the big boys will be able to remain in the game of hosting user authored content. As predicted, the new regulations will inhibit both startups and SMEs.

The second story is closer to home. The UK have decided to mandate age verification functionality for porn sites. Who do you think is going to build that? Alec Muffet and the Open Rights Group have been tracking this and even if you think it’s a good idea, they way it’s being done is disastrous. The BBFC is the regulator and this is a massive piece of scope creep, it looks like they will licence a third party to act as the software provider and again the favourites to win this business is an interested party. Alec’s latest blog post is on Medium and is critical of the regulator’s stance and IT Security expertise and he previously wrote about the competitive dynamics and opportunities created by the new laws. Muffet is also concerned about the profiling use of such a database of porn users. It’s almost back to the days of the Roman Empire where monopolies were licensed.

Reinforcing Monopoly
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