Big Tech Urged to Implement Promotion Policies Focused on Jobs and Growth
[Asia Economy Reporter Jo Yoo-jin] Big tech companies such as Apple, Amazon, Alphabet, and Meta have urged the Joe Biden administration to prepare support measures focused on promotion. As the Biden administration enters its second half in office, it is expected to intensify its offensive by strengthening legislation against big tech, prompting a public relations campaign to block regulatory legislation.
"Big Tech, Demand Promotion Policies Next Month"
The interest group 'Chamber of Progress,' funded by U.S. big tech companies, sent a letter on the 6th, according to U.S. political media The Hill, requesting that President Biden's first State of the Union address in the second half of his term include issues related to job creation and competitiveness enhancement in the big tech industry.
According to the letter obtained by The Hill, the group requested deregulation and job support measures for the big tech industry from the Biden administration. They argued that policies focused on promotion rather than regulation are necessary for big tech, which has turned to high-intensity austerity measures such as workforce reductions and budget cuts in response to the global economic recession and worsening business conditions.
Adam Kovacevich, the founder and CEO of the group, stated in the letter, "To maintain U.S. technological competitiveness during the global economic downturn, the Biden administration must present a vision for job growth and competitiveness recovery in the technology sector."
U.S. President Joe Biden is seen talking with reporters as he returns to the White House in Washington, D.C., from Camp David, the presidential retreat in Maryland, on the 6th (local time). [Image source=AP Yonhap News]
The Biden administration is reportedly including reform measures targeting the monopolistic structures of big tech as a major policy agenda in the second half of its term. The Washington Post (WP) recently reported, citing sources, that President Biden will emphasize the need for strengthening antitrust law enforcement and enacting privacy protection legislation in his upcoming State of the Union address.
According to multiple sources, Bruce Reed, Deputy Chief of Staff at the White House and a strong critic of big tech, is leading this effort. Deputy Chief Reed has been actively involved in calls to amend Section 230 of the Communications Decency Act (CDA), which has been regarded as a legal shield for social media companies.
"We Must Unite Against Big Tech Abuse"
Earlier, on the 11th, President Biden wrote an op-ed titled "Republicans and Democrats Must Unite Against Big Tech Abuse" for the Wall Street Journal (WSJ), urging bipartisan cooperation to prepare reform and regulatory legislation for big tech. The Hill noted that the core content of the upcoming State of the Union address is an extension of this op-ed.
Political pressure is also intensifying. Currently, several bills are pending in the U.S. Congress, including the 'American Innovation and Choice Online Act,' which contains comprehensive regulations against preferential treatment by big tech companies, legislation to block M&A attempts aimed at eliminating competitors in specific markets, and the '21st Century Antitrust Act,' which prohibits companies with a market capitalization exceeding $100 billion from acquiring competitors.
Since taking office, President Biden has placed 'New Brandeis' figures?who believe that 'big corporations are inherently evil'?in key positions within the administration and judiciary, demonstrating a tough stance on big tech regulation. Notable figures include Lina Khan, chair of the FTC known as the 'Amazon Reaper,' Jonathan Kanter, head of the Department of Justice Antitrust Division and known as a Google adversary, and Tim Wu, special advisor on technology and competition policy at the White House National Economic Council and author of 'The Curse of Bigness.'
While the Biden administration cites the abuse of monopoly power by big tech as justification for regulation, questions have been raised about the appropriateness of enacting regulatory laws targeting big tech. Concerns exist that political motives may be behind the big tech regulatory discussions, and some argue that President Biden’s approach is a form of 'corporate bashing' aimed at securing reelection.
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