US IT Big 4 CEOs: "Not a Monopoly... We Are Patriotic Companies"

Attended All Parliamentary Video Hearings... Rebutting Criticism of "Excessive Power"

▲ Jeff Bezos, Amazon CEO (top row center), Mark Zuckerberg, Facebook CEO (top row right), Sundar Pichai, Google CEO (bottom row left), Tim Cook, Apple CEO (bottom row right), and other CEOs of IT giants appeared remotely on the 29th (local time) at the U.S. House Judiciary Subcommittee antitrust hearing to take the witness oath.
　 [Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The CEOs of the IT 'Big 4' that dominate the U.S. Nasdaq market appeared via video conference on the 29th (local time) at the U.S. House Judiciary Committee's Antitrust Subcommittee hearing, engaging in a heated exchange with lawmakers.

Lawmakers criticized, saying "The power of IT companies has become excessively large," while the CEOs countered, "We are competing globally." This was the first time the heads of these companies, whose combined market capitalization reaches $5 trillion (approximately 6,000 trillion KRW), appeared simultaneously at a congressional hearing.

According to the Washington Post (WP), Wall Street Journal (WSJ), and others on the 29th (local time), the key issue at the hearing was whether these companies abused their market dominance to enjoy monopolistic privileges. David Cicilline, chairman of the House Judiciary Committee's Antitrust Subcommittee and a Democrat, criticized in his opening remarks, "These companies are so powerful that they suppress competition, creativity, and innovation," adding, "Many of their practices have economically harmful effects."

Cicilline particularly intensified his criticism of Google. He targeted, saying, "Google has become the gateway to the internet and uses its enormous power to steal content from honest small and medium-sized businesses." Sundar Pichai, CEO of Google, rebutted, "We compete with numerous rivals such as Amazon Shopping, Twitter, Instagram, and Pinterest."

Facebook was heavily questioned on allegations that it hindered fair competition in the social networking service (SNS) market by acquiring competitors Instagram and WhatsApp. Jerry Nadler, chairman of the Judiciary Committee, pointed out, "Facebook acquired Instagram to prevent it from becoming a threat in the market," adding, "This undermines market competition." Mark Zuckerberg, CEO of Facebook, claimed, "We compete fairly and face tremendous competition from China," and stated, "Facebook is a proud American company that upholds the values the U.S. strives for: democracy, competition, and freedom of the press." This was an appeal to 'patriotism' aimed at the Trump administration's push to regulate Chinese SNS platforms like TikTok.

Jeff Bezos, CEO of Amazon, also strongly rejected similar criticisms. When Cicilline pointed out, "Amazon's sellers have been abused and abandoned," Bezos responded, "We employ over one million people in the U.S. alone, and 60% of sales come from two million small and medium-sized business products." He then emphasized that he is a symbol of the American Dream, sharing the story of his mother who was pregnant with him at 17 and his Cuban immigrant adoptive father, highlighting that there were no illegal activities during Amazon's growth process.

Regarding antitrust practices within the App Store, Tim Cook, CEO of Apple, named Samsung Electronics, LG Electronics, and Huawei as competitors and stated, "Our goal is to be the best, not the biggest."

President Trump also showed high interest in the IT company leaders' congressional appearance. Through his Twitter, he warned, "Congress should have regulated Big Tech companies years ago," adding, "If they don't, I will issue an executive order myself."