The tech giants have been targeted by a bold set of antitrust legislation from a bipartisan group of congressional lawmakers – and the proposed laws could force them to overhaul or even demolish their businesses.
Amazon, Apple, Facebook and Google’s main alphabet – the five antitrust bills introduced on Friday – will end the merger of the largest technology platforms and prevent them from owning businesses that could lead to conflicts of interest.
Amazon and Apple’s two new bills can be very difficult to navigate because they both control inclusive markets that compete with outside sellers who trust their products or services.
David Citzylin (D-RI), sponsor of the House Antitrust Subcommittee on the Platform Monopolies Act and the American News and Choice Online Act, sponsored by Representative Pramila Jayapal (D-Wash) ) is called. can disrupt technical behemoths by eliminating conflicts of interest between different business lines.
A second bill introduced by a Cicillin spokesman would reduce the ability of large tech companies to use their platforms to advertise their products ahead of their competitors – a rule that could affect Amazon’s own third-party market.
“Unregulated technological monopolies have tremendous power over our economy,” Cicillin said. “They have a unique position to select winners and losers, eliminate small businesses, raise consumer prices and lay off. Our agenda is to level the playing field. ”
Ken Buck (R. – Colo.), The top Republican in the Antitrust Panel, said the legislation “breaks the monopoly power of Big Tech to control what Americans see and say on the Internet and supports an online marketplace that encourages innovation.”
The remaining three bills are aimed at limiting the mergers that Silicon Valley giants have used to develop and neutralize competition. The “Platform Competition and Opportunity Act,” led by Judge Jeffrey (D-NY), prohibits major online players from buying competitive threats, while “Friendship Co-op” led by Joe Neguse’s “Modernization of Merger Fees” law. ”It provides power and resources to executive agencies, requiring high fees for accruals worth $ 1 billion or more.
At the same time, “Strengthening Compliance and Competition through Activation of Service Sharing Act” led by spokeswoman Mary Gay Scanlon (D-Pa) should strengthen competition by forcing companies to allow consumers to exchange data between platforms.
The Legislative Chamber must then vote on the bills before the Senate can go to the Senate for approval. Only then can bills be signed by the president.
The two-way support of the package is bad news for technical titans who are considered to have excessive power over the industry.
The tech giants did not immediately respond to requests for comment.
The antitrust reforms came after a 16-month investigation by the House Judiciary Committee into anti-competition issues against the four technology giants, which was completed last year.
A 450-page investigative report at the time found that Amazon, Apple, Facebook and Google had gained monopoly power and that antitrust laws needed to be revised to better address today’s digital media envirolovebylifent. The report says that for large technology companies, big changes need to separate or split part of their business or make it harder for smaller companies to buy.
While Democrats and Republicans have been at odds over some solutions, they have found common ground on anti-confidence issues that are depressing the market and agree that reform is needed to stimulate competition.
Amazon caught the flag from lawmakers allegedly because it used third-party enterprise data to develop and promote Amazon label products such as Amazon Basics.
According to the report, Amazon’s personal label reflects an important part of the tech giant’s business and boasts 158,000 products from dozens of different brands.
The company also has important business lines, from entertailovebylifent programs broadcast via Prime Video and e-readers via Kindle to voice assistants via Echo and door ring cameras via Ring. Removing its various subsidiaries could possibly be a long and costly process.
The Law on Liquidation Platform Monopolies is being developed as a global equivalent to the 1933 Glass-Stagal Historical Law, which separates commercial and investment banks.
The potential legislative battle took place a month before Jeff Bezos stepped down as CEO of Amazon in July and was handed over to web services chief Andy Jassi, shortly after he blew himself up into space on a Blue Origin rocket.
The U.S. is not the only country expected to clash with jassi regulators.
On Thursday, The Journal reported The European Union’s privacy watchdog has offered a $ 425 million fine for Amazon’s data collection practices. The fine will be the largest fine to date under a strict data privacy law passed by the EU in 2018.
Two of Friday’s bills are already being backed by funded companies.
“Adopting a European regulatory model could make it harder for American technology companies to innovate and compete both here and globally,” said Geoffrey Manne, founder of the Center for International Law and Economics. This was reported by LOVEBYLIFE, the group added that it had previously received funding from Google.
A Middle post Adam Kovacevic, executive director of Progress Chamber, a development group backed by five technology giants, announced earlier this week that consumers are free to deliver like Amazon Prime and interact between Facebook and Instagram. they said they would miss out on “conveniences” such as sending. on these proposals.
“With all the problems facing our country – pandemic recovery, collapsed infrastructure, racial inequality and climate change – some politicians think it’s the biggest problem we need to fix … Amazon-based batteries,” he wrote. Kovacevich.