Understood: Who Broke the Internet? Episode: In God We Antitrust Release Date: May 19, 2025

Host: Cory Doctorow Guest: Lina Khan, Chair of the Federal Trade Commission (FTC) Featured Story: Michael Wiesel, Small Business Owner

Introduction

In the episode titled "In God We Antitrust," Cory Doctorow delves deep into the escalating battle against monopoly power in the digital age. Central to this discussion are the struggles of small business owners against corporate giants like Amazon and the pivotal role of Lina Khan, the FTC Chair, in reshaping antitrust enforcement.

Michael Wiesel's Struggle: A Small Business Under Siege

The episode opens with the personal and harrowing story of Michael Wiesel, a small business owner from Knowlton, Quebec. Michael's journey epitomizes the detrimental impact of unchecked corporate dominance on individual entrepreneurs.

Michael Wiesel (00:38):
"I think they're the most evil company on the face of the planet. Of the normal retail giants, they are by far the most evil by far."

Michael recounts how Amazon, once a vital partner that propelled his homemade soap and DIY lip balm kits into national and international markets, turned adversarial. In 2018, while accessing his own Amazon listings to understand the buyer's perspective, Michael made a shocking discovery:

Michael Wiesel (03:15):
"I start seeing my products being sold by Amazon and saying, what the fuck is going on?"

Amazon had begun selling Michael's products at lower prices, directly competing with him on their platform. This was not just a personal vendetta but part of a broader strategy by Amazon to dominate markets by undermining competitors.

Michael Wiesel (03:38):
"So I was selling my products at that point around 19.99 and they were starting to sell my products... It's just incredible greed. I've never seen greed like this in my life."
(Timestamp: 03:38)

Despite the apparent unfairness, such practices weren't initially illegal, highlighting gaps in antitrust enforcement that allowed giants like Amazon to maneuver with impunity.

The Rise of Antitrust Concerns: Lina Khan's Journey

The narrative then shifts to Lina Khan, a 28-year-old law student whose groundbreaking research began challenging the status quo of antitrust laws. Her work would eventually lead her to become the youngest Chair of the FTC.

Lina Khan (05:30):
"I was a law student, and I had spent years doing research and interviews with the businesses that sell on Amazon and had come to conclude that Amazon, as a company, had certain properties of what we traditionally understood to be a monopoly."
(Timestamp: 05:30)

Khan's exploration into Amazon's dominance was not an isolated academic pursuit but a response to real-world injustices faced by entrepreneurs like Michael.

The Antitrust Paradox: From Bork to Khan

To understand the current antitrust landscape, Doctorow provides historical context, tracing the evolution from the Sherman Act of 1890 to the influence of Robert Bork, whose 1978 book, "The Antitrust Paradox," reshaped antitrust enforcement to prioritize consumer welfare—primarily through lower prices.

Robert Bork (10:22):
"When I first started at Yale, I really thought the situation of the law was hopeless, that the intellectual content of antitrust was corrupt beyond redemption..."
(Timestamp: 10:22)

Bork's interpretation sidelined broader concerns about monopolies' societal impacts, focusing narrowly on price reductions as beneficial. This shift paved the way for tech giants to amass unprecedented power without significant legal repercussions.

In contrast, Lina Khan's approach challenges this narrow focus, advocating for a more holistic view of competition that safeguards against monopolistic abuses beyond just pricing.

The FTC's Battle Against Big Tech

Lina Khan's rise to the FTC Chair marked a significant shift in antitrust enforcement. Under her leadership, the FTC began a series of aggressive actions against dominant tech companies to restore competitive balance.

Cory Doctorow:
"In 2017, in her last year at Yale, Lina Khan published her paper. In a cheeky reference to Bork's book, she called it Amazon's antitrust Paradox."
(Timestamp: 26:07)

Her pivotal 2017 paper critiqued the consumer welfare standard, arguing that it allowed companies like Amazon to exploit their market positions without facing meaningful consequences. This perspective resonated widely, leading to her nomination and eventual confirmation as the FTC Chair.

Under Khan's stewardship, the FTC initiated multiple lawsuits targeting major players:

• Amazon: Accused of using its market power to inflate prices and suppress competition (28:15).
• Adobe and Amazon: Sued for creating subscription traps that make canceling services deliberately difficult (30:07).
• Meta and Google: Faced historic antitrust trials over their dominance in social media and search, respectively.

Lina Khan (29:28):
"Sellers who now pay one out of every $2 to Amazon. So this is effectively a 50% tax that businesses pay to Amazon to reach shoppers."
(Timestamp: 29:28)

These actions signify a concerted effort to dismantle entrenched monopolies and restore a fair competitive environment, aligning with the original intents of the Sherman Act.

Broader Implications for the Internet and Future

The episode underscores that the current struggles against monopolies are not isolated incidents but symptomatic of a larger systemic issue where policy choices have enabled tech giants to dominate and dictate market terms.

Clive Thompson (23:31):
"The government had been completely asleep at the till on antitrust for the longest time. And I think the abandonment of antitrust has been pretty disastrous for the Internet that we use today."
(Timestamp: 23:31)

The consolidation of power by companies like Amazon, Google, and Meta stifles innovation, limits consumer choice, and undermines the democratic potential of the internet. However, Lina Khan's efforts represent a beacon of hope for recalibrating this balance.

Conclusion

"In God We Antitrust" paints a compelling picture of the ongoing battle to reclaim the internet from monopolistic control. Through the lens of Michael Wiesel's personal struggles and Lina Khan's transformative leadership, the episode highlights the urgent need for robust antitrust enforcement to ensure a free, fair, and innovative digital landscape.

As the FTC's legal battles against Big Tech unfold, the outcome will likely shape the future of the internet, determining whether it remains a tool for liberation or becomes a mechanism of control by a few dominant entities.

Notable Quotes:

• Michael Wiesel (03:38):
  "It's just incredible greed. I've never seen greed like this in my life."

• Lina Khan (05:30):
  "Amazon, as a company, had certain properties of what we traditionally understood to be a monopoly."

• Lina Khan (29:28):
  "This is effectively a 50% tax that businesses pay to Amazon to reach shoppers."

• Cory Doctorow (26:07):
  "I used Amazon as a vehicle to tell a broader story about antitrust and how this consumer welfare paradigm had become the Achilles heel..."

Credits:

Written and produced by Matt Muse, A.C. Rowe, and Cory Doctorow. Featuring clips from CBC, the Wall Street Journal, and other notable sources. Story editing by Veronica Simmons and executive production by Nick McCabe.

For more insights into internet history, check out Season Two, hosted by Sam Cole, exploring the rise and fall of Pornhub's empire.

Note: This summary is intended to encapsulate the key discussions and narratives presented in the episode "In God We Antitrust" from the podcast series "Understood: Who Broke the Internet?" by CBC.