Big Tech Company Executives Pressed On Capitol Hill On Their Market Influence
On July 29th four of the biggest tech companies CEOs testified in front of Congress. Jeff Bezos of Amazon, Tim Cook of Apple, Mark Zuckerberg of Facebook, and Sundar Pichai of Google all took questions from the U.S House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law. The hearing which can be viewed here was titled “Online Platforms and Market power, Part 6: Examining the Dominance of Amazon, Apple, Facebook, and Google.”
Sadly, there was a lot of political posturing on both sides of the political aisle and not a lot of policy. The main takeaway is that there is still no clear bipartisan antitrust agenda.
Democrats presented evidence regarding antitrust concerns. It seemed they had pointed questions regarding certain deals such as Amazon's purchase of Ring to control that sector of the market and Facebook's alleged threats against Instagram before its purchase of the company.
Republicans focused on perceived anti-conservative bias in tech instead of addressing company size and market power. Their questions focused on whether the tech companies will participate in "electioneering" for Joe Biden and grilled Facebook about Twitter's shutdown of Trump Jr.'s account.
This has been a year-long investigation by this Subcommittee with this testimony capping the investigation. Subcommittee members are still in the process of sending follow-up questions to the CEOs and finalizing their conclusions over the next few weeks. Once they are done the Subcommittee will file a report of its findings.
This process has been highly politicized, and many tech stakeholders are wondering whether any significant policymaking will get done by the end of the year. While there is reason to be skeptical, there is a highly charged election about to take place, meaning it wouldn’t surprise us if a small step towards technology regulation was accomplished. The bigger question is what happens to tech policy at the start of 2021?
We continue to see an increase in federal and state policymaking when it comes to technology companies. The threat of looming technology legislation will undoubtedly lead to increased regulation. It’s better to be prepared now by knowing the landscape and preparing your strategic options in order to navigate the increased scrutiny.
Lanton Law is a national boutique law and government affairs firm that focuses on technology and healthcare. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.