Jeff Bezos defended Amazon’s relationship with third-party sellers (AFP)
Washington:
Big Tech executives faced a wave of criticism from U.S. lawmakers on Wednesday in a high-stakes antitrust hearing that could lay the groundwork for tighter regulation and lawsuits against major platforms Internet.
Apple CEOs Tim Cook, Amazon’s Jeff Bezos, Facebook’s Mark Zuckerberg and Google’s Sundar Pichai were toasted for more than five hours in the unprecedented joint appearance – by video – before a House panel investigating market dominance.
Although the hearing was called to focus on whether companies abused their dominant position in the market, it quickly turned to other topics including political biases, privacy, relations with China and how the platforms deal with disinformation.
“Put simply, they have too much power,” said Representative David Cicilline, a Democrat from Rhode Island who chairs the panel conducting a year-long investigation into the business practices of the four companies.
Cicillin said the hearing made it clear that companies “have monopoly power – some need to be dismantled, all need to be properly regulated and held accountable.”
Congress has no formal role in enforcing antitrust laws, but several lawmakers appeared determined to revise U.S. laws to deal with the extraordinary market power and dominance of big tech companies.
Pandemic force
Cicillin said the coronavirus outbreak has bolstered the economic weight of the four, saying, “They are likely to emerge (from the pandemic) stronger and more powerful than ever.”
A few comments from lawmakers have sought to downplay the competitive harms of companies, which have also been lauded for innovating and introducing new technology and offering lifelines during virus lockdowns.
“Being tall isn’t inherently bad,” said Jim Sensenbrenner, a Republican from Wisconsin. “Quite the contrary, in America you should be rewarded for your success.
Abusing platforms?
Some lawmakers have sought to highlight the issues with tech companies operating platforms while competing with rivals on those systems.
Washington state Democrat Pramila Jayapal asks Pichai about how Google operates its advertising platform, saying it harms other online services such as news organizations.
Google “runs the market, it acts on the buyer’s side and on the sales side, which is a major conflict of interest,” Jayapal said.
The Apple cook has faced tough questions about the market power of the company’s App Store and its treatment of developers.
“We treat all app developers the same,” Cook said. “We don’t retaliate or harass people.
Bezos, in his first appearance before a congressional committee, defended Amazon’s dealings with third-party sellers after a massive Cicillin attack.
“Isn’t it true that small businesses don’t have a real option, but rely on Amazon to connect with customers and make online sales?” asked the chairman of the committee.
“We heard time and time again from third party sellers during our investigation that Amazon is the only game in town.”
Bezos took issue with the characterization while adding, “There are a lot of options for small businesses. I think we’re the best.”
Playing politics
President Donald Trump, who accused Facebook and Twitter of censoring his comments and being biased against the Tories, weighed in with a tweet shortly before the hearing began, and some Republican lawmakers echoed the remarks .
“If Congress doesn’t bring fairness to the Big Techs, which they should have done years ago, I will do it myself with the executive orders,” Trump said.
Rep. Jim Jordan, a Republican from Ohio, said at the hearing, “I’m going to get right to the point – Big Tech is here to attract the Tories. It’s not a suspicion. It’s not. an intuition. It is a fact. “
Democrat Jamie Raskin of Maryland dismissed the argument, saying Facebook and other platforms had failed to contain disinformation from Trump and his supporters, including unverified COVID-19 allegations.
“If Facebook is trying to crack down on conservative rhetoric, it is doing a terrible job,” Raskin said. “I don’t understand this endless whining” of Republicans.
Moving forward
Some analysts said the hearing could set the stage for a review of US antitrust laws, which currently prevent authorities from targeting companies simply because they are large or dominant without also showing consumer harm or abuse. market power.
“There was considerable skepticism towards the tech industry as lawmakers worry about unfair competition and unfair practices,” said Darrell West, director of the Technology Innovation Center at the Brookings Institution.
“If Democrats take control of the (November election), this hearing will serve as a model for increased regulatory oversight,” West said.
Michael Carrier, professor of antitrust law at Rutgers University, said that “the hearing showed the representatives had done their homework” and showed documents hinting at anti-competitive actions.
“I don’t think any immediate changes will result from the hearing, but it will support the dynamic continuing to challenge these companies,” he said.
Avery Gardiner, a former government antitrust attorney who tracks competition for the Center for Democracy & Technology, said the hearing was “a wasted opportunity” that failed to demonstrate specific anti-competitive actions, now leaving the question open. regulatory agencies.
“Congressional hearings, which by their nature are large, do not lend themselves well to an in-depth analysis of what Big Tech is doing that might affect competition,” she said.
(This story was not edited by GalacticGaming staff and is auto-generated from a syndicated feed.)
