Creating regulations like this may end up acting as a regulatory moat for existing social network companies. This probably makes the overall social media pie smaller overall but guarantees incumbents slice of the pie.
We've seen this happen in other highly regulated areas such as healthcare, telecommunications, etc.
I suspect the way things are trending, in 10 years, very few entrepreneurs would be willing to start a new social media company.
Clearly the regulators see this as a potential downside, which is why the $100 million in gross revenue provision was added.
We've seen this happen in other highly regulated areas such as healthcare, telecommunications, etc.
I suspect the way things are trending, in 10 years, very few entrepreneurs would be willing to start a new social media company.
Clearly the regulators see this as a potential downside, which is why the $100 million in gross revenue provision was added.