House Judiciary advances sweeping legislation to rein in and break up Big Tech

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House Judiciary advances sweeping legislation to rein in and break up Big Tech


https://www.cnn.com/2021/06/24/tech/hou ... index.html

A powerful House panel approved a set of proposals aimed at weakening Big Tech. It passed a series of measures imposing new obligations on top digital platforms, prohibiting them from abusing any gatekeeper power, and in some cases opening the door to new fines and breakups.

lawmakers sent bills to the House floor that would represent the most significant change to US antitrust law in decades.
The toughest bills outlaw what committee members have alleged are the most blatantly anti-competitive tactics practiced by Big Tech.


Under those proposals, Amazon (AMZN) would be barred from owning the same e-commerce platform on which it competes with independent sellers. Facebook (FB) could not acquire startups that it may perceive to be a future competitive threat. Google would be prohibited from promoting YouTube in search results over other video rivals. And Apple (AAPL) may be required to allow third-party app stores on iOS. The proposed policies drive straight at the heart of some of Big Tech's key business models.


The bills would make it illegal for large tech companies to unfairly elevate their own products and services on platforms they own, as with Google pushing YouTube videos, or to use their control of multiple platforms to hurt other businesses that depend on those same platforms, as some allege against Amazon in its treatment of sellers.



The bills do not name the individual companies — Instead, the bills outline a general definition for tech giants that antitrust regulators would be expected to use in identifying companies subject to the laws. This includes market cap and monthly user thresholds.
Under the bills, if the Federal Trade Commission or the Justice Depart find that a covered company has abused its gatekeeper power, the agencies could potentially sue for fines or a breakup.



The results could create massive changes for the internet as we know it.
The House markup comes as the tech industry confronts growing pressure from policymakers and regulators worldwide. Google has been hit by multiple antitrust lawsuits by federal and state officials alleging abuses in online search and advertising. State and federal officials have sued Facebook over a "killer acquisition" strategy. Apple this spring went to trial to defend against allegations by Epic Games, that Apple's app store monopolizes app developers' access to the iPhone. Amazon faces renewed antitrust scrutiny amid its acquisition of media heavyweight MGM.
European officials have launched a steady stream of investigations into a range of business practices by Apple, Google and Amazon. Europe's top court affirmed this month that data privacy regulators across the continent — can hold digital platforms such as Facebook accountable.
The House bills mark the most comprehensive effort this side of the Atlantic to craft a national set of rules governing digital platforms.


The tech industry launched an all-out assault to thwart the US bills ahead of Wednesday's markup. Its trade groups and lobbyists said Congress was moving too fast and that the bills could lead to unintended consequences for consumers.
The companies themselves issued dire warnings: Amazon said that if it's forced to choose between selling retail goods on its own and operating an e-commerce marketplace for everyone, it would choose the former, resulting in lost business for half a million sellers who use its platform. Apple said that allowing iOS users to download apps from anywhere could lead to security and privacy breaches.


A bipartisan coalition of California lawmakers, worked throughout the session to challenge the bills, citing "basic questions" they said the authors failed to answer. They said, it is not obvious how the bills would affect specific products used by millions of consumers.
Europe ramps up pressure on tech giants