Lord Mitchell debates involving the Department for Digital, Culture, Media & Sport during the 2019 Parliament

Lord Mitchell Portrait Lord Mitchell (Lab)
- View Speech - Hansard - -

My Lords, they say that there is no such thing as a free lunch. When it comes to the social media companies, that is certainly true. Google Search is free, as are Facebook, Twitter, Instagram, WhatsApp, YouTube, TikTok and a host of other online services. All of them are great products, hugely popular and used by billions of people every day throughout the world. So it begs the question: why are they free? It is because the mass of data that the internet companies hoover up on their billions of users is a treasure trove. They collect data such as location, shopping, searches, medical records, employment, hobbies and opinions. It is said that Google alone has more than 7,000 data points on each one of us. In our innocence, we all thought that we were searching Google; little did we realise that Google was searching us.

What do they do with this hoard of data? They synthesise it through algorithms. They sell their results to advertisers. Traditionally advertisers spend huge amounts on newspapers, television and other media, struggling to target their markets. It was imprecise. Today, using the data provided by the social media companies, advertisers can personalise their message and pinpoint it accurately. It is hugely cost effective and it generates hundreds of billions in revenue. Data truly has become the new oil.

Of the five largest companies in the world by market value, four are big tech: Apple, Microsoft, Alphabet/Google and Amazon. Indeed, Apple alone has a market value equal to the combined value of all the companies on the FTSE 100 Index. Big tech is bigger than most countries. The big tech companies are richer than us, they move faster than we do, they are aggressive, they are litigious, they are accountable to no-one, they have enormous power, and they make their own rules. They employ the smartest people in the world, even including a previous Deputy Prime Minister of our country.

The Zuckerberg shilling can buy a lot of influence. Let us take a look at Facebook. Its platform has allowed the most unspeakable acts of violence, hate and perversion to go viral, pretty much unchecked. It says that it moderates content, but it is not enough, and usually too late. Now we learn that Mr Zuckerberg is spending $10 billion a year on developing his metaverse. Already we have read of examples of virtual reality sex orgies, and participation in gruesome violence, all viewed through a Meta headset, where the avatars are quasi-people and it becomes almost impossible to distinguish reality from fiction. Imagine where that is all going. Frances Haugen, the Facebook whistleblower, had it right when she said that only profit motivates the company.

This is a landmark Bill. We have to get it right, and we have to make it tough, with no room for loopholes or ambiguities. I have tried to paint a picture of the participants. I have worked and been involved in the digital industry for over 50 years. I know the nature of the beast. They will fight to the last to preserve their business model. Do not underestimate them. These people are not our friends.

Digital Technology (Democracy and Digital Technologies Committee Report)

Lord Mitchell Excerpts
Friday 11th March 2022

(2 years, 1 month ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Mitchell Portrait Lord Mitchell (Lab)
- Hansard - -

My Lords, like most noble Lords, I am absolutely thrilled to see Lord Puttnam here today on the steps of the Throne. His wisdom and fingerprints are all over this cracking report and we owe him a great debt of thanks. Speaking very personally, I have to say that it is a real tragedy that he is no longer a Member of this House. My noble friend Lord Lipsey is to be congratulated on stepping into his shoes and delivering such a masterful introduction to this debate.

Never one to hold back, Lord Puttnam said in another speech that the Government’s response was “lamentable” and:

“It came across as if written by a robot”.


I will go a little further. On this committee sat Members of your Lordships’ House, drawn from all sides, each of whom has extensive experience of the dangers to our democracy from the misuse of digital technology—and we have heard from this debate just how powerful and experienced all the contributors are. So why did DCMS produce such a tepid and bland reply to our report, and why did it not accept many of our 45 recommendations? We know the answer: it just ignored them. Written by a robot? More likely written by a junior with the brief, “Write 25 pages and say nothing”.

I wish to contain my comments to recommendation 8:

“The Competition and Markets Authority should conduct a full market investigation into online platforms’ control over digital advertising.”


I will link that to what I believe to be the massive dangers to our democracy posed by big tech, in particular Google and Facebook; I do not have to use their other names, Alphabet and Meta.

When Google was founded, it had a corporate mantra which proclaimed, “Do no evil”. Facebook had one too. It was “Move fast and break things”. Today, Google has 3.5 billion daily searches; Facebook has 1.7 billion active users. These staggering figures show that both services are hugely popular in much of the world, and they are also free of charge. But, of course, we all know that they are not free, because their product is each one of us, and our combined data is very valuable. The amount of data that Google has on all of us is mind blowing: 10,000 petabytes, a number that is so immense I cannot even conceive of it. How does Google collect it? From our location, from our searches, from the apps we use and from what we buy and where we buy it. Facebook has 300 petabytes of information as well: a smaller number but still huge.

Both companies monetise this data by using algorithms that produce results that are vital to advertisers in selling their products. If data is the new oil, Google and Facebook and their sister companies, WhatsApp, YouTube and Instagram, are literally swimming in it. The ownership of such data gives these companies enormous power—corporate power the likes of which has never been seen before. But they have not behaved like responsible citizens. In the political environment, we have seen massive abuses of power, particularly by Facebook. The role of Cambridge Analytica in the 2016 Brexit referendum, and then its role in the 2020 presidential election in the United States, are famous examples. The data it provided, and the manner in which it obtained it, were contrary to the best aspects of democracy. Frances Haugen, the Facebook whistleblower, said of Facebook in her brave testimony to the House of Commons Select Committee:

“Unquestionably, it is making hate worse.”


Their power of these companies is awesome. Their bank accounts are huge. They are staffed by brilliant people and they hire the best advice in the world, Mr Clegg included. Plus they pay minuscule tax on their enormous global profits. From an economic point of view, both Facebook and Google are monopolies —and not just national monopolies but global ones. Google, for example, has 92% of the UK search market; YouTube’s figures are even higher. These companies engage in surveillance capitalism. They are dangerous and we need to curb their power.

Luckily, movement is afoot. In the United States, Lina Khan, head of the FTC, is pushing for antitrust Bills. In the US Senate, Amy Klobuchar has introduced a Bill. In the EU, Margrethe Vestager is introducing a digital services act to regulate big technology. But we lag behind. I ask the Minister whether the Government have any plans to encourage the CMA to investigate the monopoly powers and influence of big tech. Big tech moves fast and breaks things. Big tech also facilitates hate and evil. We, the lawmakers, are ponderous and slow to act, but the threat to our democracy is real and we need to move with haste.