▲(From left) Jeff Bezos, Amazon CEO; Tim Cook, Apple CEO; Sundar Pichai, Google CEO; Mark Zuckerberg, Facebook CEO [Image source=AP Yonhap News]
[Asia Economy Reporter Kwon Jae-hee] The U.S. House Judiciary Committee has begun reviewing an 'antitrust regulatory bill package' aimed at curbing the market dominance of big tech companies. Out of a total of six bills in the package, only three with the least impact on these companies have been passed. However, even these are expected to face fierce battles and intense lobbying by the companies in the Senate due to strong opposition from big tech firms.
According to the Wall Street Journal (WSJ) on the 23rd (local time), the House Judiciary Committee started deliberations on the 'antitrust regulatory bill package' jointly proposed two weeks ago by bipartisan lawmakers, including David Cicilline, chairman of the House Judiciary Antitrust Subcommittee from the Democratic Party, and Ken Buck, ranking member from the Republican Party. This package consists of six bills in total: five antitrust regulatory bills introduced two weeks ago and one separate regulatory bill introduced last April.
The bills passed on this day were only the three with the least impact on big tech companies among the six. These include ▲raising the fees paid to the government during mergers and acquisitions ▲a bill requiring antitrust lawsuits to be filed in courts chosen by the Attorney General ▲a bill mandating that user data collected by one company be shared with other companies when users switch from one service to another.
Gerald Nadler, chairman of the House Judiciary Committee, stated, "We will open the way to a stronger economy and stronger democracy for the American people by curbing the abuse of market dominance by dominant companies online."
However, bills considered to have tremendous disruptive power that could completely reshape the industry landscape?such as company breakups, separation of products and services, and nullification of large-scale mergers and acquisitions (M&A), which big tech companies fear?were not even discussed. If these bills were passed, Amazon would be prohibited from selling its own products on Amazon.com and from prioritizing its products in exposure. Apple would also have to change its previously closed App Store policies, with expected enormous ripple effects. The Congress plans to continue deliberations tomorrow.
As the House officially began discussions on big tech regulation, so-called 'GAFA'?Google, Amazon, Facebook, and Apple?strongly opposed the moves.
On this day, Apple posted a 16-page report on its website, pointing out that "downloading apps without going through the App Store could expose users' privacy."
Other companies expressed similar views. Brian Huseman, Vice President of Public Policy at Amazon, argued, "This will negatively affect small businesses selling products on the Amazon platform," and urged, "Congress should carefully examine the negative consequences this bill would cause."
Mark Isakowitz, Vice President of Government and Public Policy at Google, also stated, "This will ruin services loved by American consumers and small businesses," adding, "It will severely damage America's technological leadership, harm the way small businesses connect with consumers, and cause serious privacy and security issues."
Not only Republicans opposing these bills but also some Democrats have expressed concerns, indicating that fierce battles are expected in the Senate. While Republicans also worry about the market dominance of big tech companies, they differ on the intensity of regulation.
Representative Jim Jordan commented, "This bill reveals worrying issues between big tech and big government, which have only just started working together," and assessed, "The Federal Trade Commission (FTC) will gain unprecedented vast powers to set industrial policies and impose political agendas on companies."
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