Junsnag Lee

ITS 380

Professor Shin-Ping

Ch.8 Ethical, Social, and Political Issues in E-commerce


Case Study

1.      How does the first era of antitrust thinking (1890-1950s) differ from the second era?

A. Between 1900-1920, congress went through the process of concentration in American business as a huge force. In other word, the Clayton Act of 1914 hands over the power to break the force before it became momentum. On the other hands, in late 1970’s the antitrust policy and enforcement went down. The government did not try to merge against competitors because it was rare with the last litigated in 1979.

2.      What is a "natural monopoly" and how has the United States dealt with natural monopolies?

A. the definition of natural monopoly means if there are declining cost over the range of production so that it can be satisfied the market demand. To accomplish the natural monopoly, there is a condition which is the fixed costs are larger than variable costs. Hence, for example, if one company can produce the total quantity demanded in the market with the lower price than multiple companies produce the products, as the result, the natural monopoly would raise the average cost of production. 

3.      What are three possible solutions to the market dominance and anti-competitive behavior of Facebook, Google, and Amazon?


1) protect small company from merges.

2) government support innovative small startup companies.

3) Use Big Tech firms as the role model so that small companies can follow their path.

4.      How does the European model of antitrust differ from the American model?

A. European model shows the difference from the American model in terms of antitrust. American model tend to show focusing effectiveness but, the European model tends to show the distribution channel and market; there are several many different standard.


2. Develop a list of privacy protection features that should be present if a website is serious about protecting privacy. Then, visit at least four well-known websites and examine their privacy policies. Write a report that rates each of the websites on the criteria you have developed.


1) WhatsApp

If we register our personal information such as the phone number and name, the WhatsApp service will use that information to operate, provide and maintain your information so that you can use WhatsApp service. Our mobile phone number is important not only for us but also for WhatsApp server so that the number will be retained by their server. However, all the information that they collected from us will be deleted after we erase our account from WhatsApp server; it takes 30 days to be deleted. Any personal and identifiable information or status contents that we spontaneously offer to the WhatsApp service, that information will be opened to everyone except the people who we blocked in WhatsApp server. Your name and personal information that we updated in our status box, other users can read and even contact me through the WhatsApp service. They do not use our personal information including phone number to send commercial or marketing messages. However, they do send the information message if there are some change before we use it; for example, notifying us of major WhatsApp site or WhatsApp service changes or for customer service purposes. On the other hands, they use our information to improve their quality of services. For example, they use our personal and non-personal information: anonymous user usage data, clickstream data, IP address, cookies, browser type and so on. After they collect these data and use that information for creating new feature, analyzing user preference and treads, promotions, functionality, and services by tracking etc. They are likely to use the information about cookies and log file to remember information so that we do not have to re-login over and over whenever we use WhatsApp service or WhatsApp site. They also use our information to offer custom, personalized content and information. There is another reason that they monitor individual and aggregate metrics for instance: pages viewed, and total number of visitors etc by using the collected information. As the last reason, they can track our entries, submissions, views and search. Others can look up your personal information as long as they have our mobile phone number in their contact list or phone number book.

            2) Amazon  

Amazon is one of the biggest e-commerce platforms in the world. Due to the size and power of the Amazon, they can access to enormous information if they like to do. For example, they can look up what programs we are likely to watch or what web site we are likely to visit, or what book we are likely to read and so on. When we use Amazon, we tend to offer our information spontaneously. For instance, we need to register our information when we create the account on Amazon; we need to put our phone number, address where we live, credit card information for making purchase and check out and so on. Amazon also collect the information about what we searched, and what we buy on Amazon. Sometimes, we are even required to provide our social security or driver’s license. Furthermore, after we use the products that we bought from Amazon, we leave comments about the products too.

Just like how WhatsApp does, Amazon is also likely to collect our habit of internet platform usage; for example: IP addresses, cookies, browser types, versions, and time zone setting etc.

3) Google

Google is one of the famous websites that most of people use in the world. Same as Amazon, we give our information when we create Google account such as phone number and location where I live things like this. Once we use google services, they collect information based on the things we do so that they can serve us with better quality and fast. When we use Google account, usually they keep the basic information for us. Furthermore, they store my emails, photos, videos and documents so that we can use those whenever we need them. They also allow us to manage the authority to control the types of data they collect. One of the most impressive facts is that Google, they do not share our information with other advertisement companies as long as we permit to do that.

4) Facebook

Facebook is world famous social networking platform. Since it is a big website. They recommend us to use as complex password as possible including login alerts and login approvals to prevent unauthorized user to access our account. Usually people are not allowed to access our permission but, when our accounts got hacked or we forgot our password, people who we trust can help us to unlock the account. This is how Facebook protect our information. They also use special tool to protect us from the situation that we accidentally click spam message.

3. Go to Google and find the Advanced Search link. Examine its SafeSearch filtering options. Surf the Web in search of content that could be considered objectionable for children using each of the options. What are the pros and cons of such restrictions? Are there terms that could be considered inappropriate to the filtering software but be approved by parents? Name five questionable terms. Prepare a brief presentation to report on your experiences and to explain the positive and negative aspects of such filtering software.


The options for the Safe Search include “Show most relevant results” and “filter explicit results”. Therefore, parents can protect their children from too sexual or too violent information when they are not enough grown up to distinguish the realities and fictions. Online, there are not only exaggerated sexual videos but also the information about the drug black market and how to use them. Especially, for teenagers, they are vulnerable to use drug, watch too much pornography, then it can affect their life. In terms of protect their safety it can be cons however, it can be considered as invasion of their personal privacy.