US tech companies have been shocked by a series of new bills, six in all, from Democrats in the House of Representatives. These aim to curtail the power of Amazon, Apple, Facebook, and Google. According to The New York Times, a large lobby has been launched.
That the companies are stirring in Washington is a known fact. The four companies together spent 45 million euros on their lobby in 2020, according to The Wall Street Journal.
But how they’re making themselves heard is something special, says Gigi Sohn, of the Institute of Technology, Law and Policy at Georgetown University in Washington. “I’ve never seen anything like this. They defend themselves tooth and nail,” she told The New York Times. “They see these proposals as an existential threat because it affects their business model.”
Tim Cook called Speaker Pelosi
According to the paper, the proposals for Apple are so threatening that CEO Tim Cook decided to call Nancy Pelosi, the speaker of the House of Representatives. The bills are rushed, hampering innovation and hitting consumers as Apple’s services are disrupted, Cook told Pelosi.
Last week, Congressman David Cicilline, chair of the subcommittee on competition, said the new legislation would mean Apple must allow all pre-installed apps to be removed by users. Now Apple determines which apps are allowed and which are not.
Kent Walker, who is responsible for global policy at Google, has called several policymakers. The company’s top lobbyist said in a statement that “U.S. consumers and small businesses would be shocked to learn how the laws are undermining their favorite services.”
Breaking up in the event of a conflict of interest
Thirteen nonprofits, many of which are funded by the tech companies, according to The New York Times, have also written a letter to policymakers criticizing two specific proposals. The proposals were submitted almost two weeks ago and the consequences differ.
For example, there is a proposal that obliges the platforms to make it easier for consumers to take their data from one service to another. There are also more controversial ideas. Another makes it possible to break up the concerns in the event of a conflict of interest. Yet another proposal would make it impossible for the tech giants to make acquisitions in the future.
Under each proposal is a signature of a Democrat and a Republican. Nevertheless, it remains to be seen whether the proposals will reach the finish line and, if so, in what form. Media mogul Rupert Murdoch has already called on Republicans to support the new legislation.
The question is how much the lobbyists of tech companies can change about the legislation. The Wall Street Journal reported this weekend that their influence in Washington has waned. In addition, the Biden administration just appointed a critic of big tech, Lina Kahn, to chair the Federal Trade Commission, the organization that protects American consumers and enforces competition law.