October 7, 2020-After a 16-month antitrust investigation of high-tech giants Facebook, Apple, Amazon and Google, a U.S. congressional committee suggests the companies wield extraordinary power in the economy and use their dominance to cut off competition.
According to Democrats on a House Judiciary Subcommittee, the “market power of the dominant platforms risks undermining both political and economic liberties.” Not since the “era of oil barons and railroad tycoons” have firms commanded extensive monopoly power in the market, they asserted in a 450-page report released by subcommittee this week.
“By controlling access to markets, these giants can pick winners and losers throughout our economy. They not only wield tremendous power, but they also abuse it by charging exorbitant fees, imposing oppressive contract terms, and extracting valuable data from the people and businesses that rely on them,” the report said.
A Call to Action
Subcommittee members are calling for changes to U.S. antitrust laws as well as more action by regulatory agencies. “Competition must reward the best idea, not the biggest corporate account,” Rep. Val Demings said. “We will take steps necessary to hold rulebreakers accountable.”
Committee members put forward a long list of proposals to change U.S. laws, including those that would:
- prohibit platforms from operating in adjacent lines of business;
- require them to offer equal terms on their platforms for competitors selling similar products and services;
- provide a safe harbor for news publishers; and
- prevent them from engaging in monopoly leveraging, predatory pricing, denial of essential facilities and anticompetitive self-preferencing.
Analysts say the most impactful change could the prohibition on conducting sales in a different line of business. That could lead to a mandate to break up big-tech firms currently operating in multiple markets.
Consumer Choice?
Google responded on its blog that the company supports data portability and making laws clearer but opposes proposed changes would harm consumers.
“The goal of antitrust law is to protect consumers, not help commercial rivals. Many of the proposals bandied about in today’s reports—whether breaking up companies or undercutting Section 230—would cause real harm to consumers, America’s technology leadership and the U.S. economy—all for no clear gain,” Google’s statement read.
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