A House panel proposed far-reaching antitrust reforms to curb the power of American tech giants, including Amazon.com Inc.
The House antitrust subcommittee recommendations represent the most dramatic proposal to reform competition law in decades and could lead to the dissolution of technology companies if Congress approves them.
The findings point to four of the largest US tech companies – Amazon, Google, Facebook Inc. and Apple Inc. and losers. Businesses have abused their power to quell competitive threats, leading to less innovation, fewer choices for consumers and hampered democracy, according to the report.
Democratic leaders of the panel. “These companies have too much power, and that power must be controlled and subject to proper supervision and enforcement.
Facebook fell more than 1% in recent trading after the report was released. Amazon and Apple fell less than 1% and Google was unchanged.
The most important recommendation from the staff report is that Congress consider legislation that would prevent tech companies from owning different lines of business, which could lead to a mandate to split them up.
Its ability both to use its dominance in one market as a bargaining lever in another and to subsidize entry to capture unrelated markets has the effect of spreading concentration from one market to another, threatening ever larger portions of the digital economy. . The report said.
To address this, the report recommends structural separation, prohibiting a dominant platform from operating in competition with the companies that depend on it, just as the Banking Corporation Act of 1956 prohibited large banks from acquiring insurance companies, real estate firms and others. non-bank entities. Agreement.
It also requires restrictions on the line of business or limiting the markets in which a dominant company can participate, similar to prohibiting television networks from entering production and distribution markets.
Under congressional power, the breakups would focus on types of businesses, rather than private companies, the committee’s attorney told reporters on Tuesday.
Facebook defended its acquisitions of WhatsApp and Instagram, which were criticized in the report as measures to weed out fledgling competitors and are being investigated by federal antitrust authorities.
Apple said it does not agree “vehemently” with the report, noting that it does not have a dominant share in any market.
Although Democrats control the House, Republican skepticism about the antitrust change could reduce the chances that Cicilline’s proposals will be adopted. As time runs out in this Congress, no actual legislative action will take place until 2021. Even if the November presidential election grants a majority in the Senate to Democrats, Republicans can still use procedural tools to block the approval of bills. law.
Powerful business groups like the US Chamber of Commerce had already begun to reject Cicilline’s ideas in the months leading up to the report’s release. It is almost certain that they will increase their opposition with the presentation of a bill.
“Any contemplated change in our antitrust laws will affect all sectors of our economy,” said House Speaker Suzanne Clark. “We urge members of Congress to refrain from relying on this one-sided staff report to guide future legislation.”
