Both Democratic and Republican Parties Target 'Big Tech' Firms... Stricter Regulations Expected After Presidential Election
Tech Hegemony Competition with China is Key... "Regulations Are Certain but Won't Be Excessive"
[Asia Economy Reporter Minwoo Lee] It is anticipated that regulation of major tech companies such as Google and Amazon will be inevitable following the U.S. presidential election. However, given the intense technological competition with China, excessive regulation is expected to be difficult.
On the 24th, Shin Young Securities made this forecast regarding future tech companies. Regulation of 'Big Tech' companies like Google, Amazon, Apple, and Facebook appears unavoidable, and especially if Democratic presidential candidate Joe Biden wins and the Democratic Party achieves a 'clean sweep' by controlling both the House and Senate, the financial market is expected to reflect the possibility of antitrust regulatory bills from the U.S. Democrats. Minho Lim, a researcher at Shin Young Securities, explained, "Biden does not advocate dismantling Big Tech companies, but in a policy task force (TF) formed with Senator Bernie Sanders, he was advised on the right to demand dismantling as a last resort, and he has argued that the criteria for antitrust laws should be expanded to include race, labor, and corporate concentration."
In the U.S. House of Representatives controlled by the Democrats, a report has also been issued calling for the revision of federal law to designate Google, Amazon, Apple, and Facebook as monopolies and to enforce antitrust restrictions and corporate breakups. The need to repeal Section 230 of the Communications Decency Act, which limits the immunity of internet platform companies, is also gaining attention. Enacted in 1996, Section 230 of the Communications Decency Act stipulates that internet companies are not legally responsible for harmful or defamatory content posted by third parties. This has allowed search portals and social platforms to accept and expand all content. Since this policy stance is already established, it is predicted that various regulations will pour out if the Democrats win the election.
Even if President Donald Trump succeeds in re-election, regulation is expected to be inevitable. Researcher Lim explained, "President Trump has claimed that Big Tech companies have been biased in restricting sharing regarding the death of George Floyd, which sparked nationwide protests against racial discrimination, mail-in voting in the presidential election, and allegations related to Hunter Biden's business dealings in China." Since he attacked Big Tech's pro-Democratic Party stance even before the election, it is expected that retaliatory measures will be taken if he is re-elected.
Nevertheless, regulation is expected to be limited. This is because the technological hegemony competition between the U.S. and China is in full swing. Researcher Lim said, "As the influence of Big Tech companies grows amid the technological hegemony competition with China, the possibility of strong regulation on Big Tech companies will be limited," adding, "Since the tax system for digital companies is also a global issue, rather than radical regulations that dismantle the Big Tech ecosystem, progress will be made in a gradual and sustainable direction."
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