Big Tech Chief Executives Defend Against Antitrust Accusations in Congress

July 30, 2020 by Tom Ramstack
Facebook CEO Mark Zuckerberg speaks via video conference during a House Judiciary subcommittee hearing on antitrust on Capitol Hill on Wednesday, July 29, 2020, in Washington. (Graeme Jennings/Pool via AP)

WASHINGTON — The chief executives of the biggest computer and Internet companies faced tough questioning in Congress Wednesday on whether they have too much control over the U.S. market.

Some lawmakers want to break up their dominance under federal antitrust laws.

Amazon, Apple, Facebook and Google are the “emperors of the online economy,” said Rep. David Cicilline, D-R.I., chairman of the House Judiciary Committee’s antitrust panel.

The result is that consumers are paying high prices and have little control over the quality of their online purchases, said Cicilline.

“Simply put, they have too much power,” he said about the tech giants.

The chief executives said their marketing and growth represent efforts to stay competitive in a tough industry.

Cicilline and some other lawmakers were unconvinced. They suggested their competitiveness has gone too far, giving them the discretion to drive smaller companies out of business, censor conservative political messages and get away with allowing fraudsters to operate through their Internet platforms.

Some of the criticism against Facebook Chief Executive Mark Zuckerberg focused on his company’s $1 billion acquisition in 2012 of Instagram, a photo and video sharing social networking service.

It became a Facebook competitor after it was launched in October 2010.

Some lawmakers want to break Instagram off from Facebook through antitrust laws. Instagram has more than a billion monthly users worldwide.

They asked Zuckerberg about internal company emails in 2012 in which he described Instagram as potentially “very disruptive” to Facebook. The company’s chief financial officer raised the possibility of neutralizing the potential competitor in a separate email.

Zuckerberg replied by acknowledging that was what he had in mind. Shortly afterward, Facebook acquired Instagram.

Zuckerberg told the congressional committee his Instagram acquisition was approved by the Federal Trade Commission. He described it as a routine business venture.

“It was not a guarantee that Instagram was going to succeed,” Zuckerberg said.

A top supporter for the companies was Rep. James Sensenbrenner, R-Wis., who told other members of the subcommittee on antitrust, commercial, and administrative law that “being big is not inherently bad.”

He added, ”Quite the opposite. In America you should be rewarded for success.”

However, fellow Republican Rep. Jim Jordan of Ohio accused Google and Facebook of censoring conservative messages, including statements from President Donald Trump intended to advance his re-election campaign.

“I’ll just cut to the chase, Big Tech’s out to get conservatives,” Jordan said.

He asked Sundar Pichai, chief executive of Alphabet Inc., which owns Google, for assurances his company would not show favoritism against Trump during the 2020 federal election.

“Any work we do around elections is non-partisan,” Pichai replied.

He also said Google’s removal of messages from the Internet is intended to protect users against fraud and deception, such as fake medical cures and financial scams. Google identifies most problematic ads, photos or messages through a computer algorithm.

“There’s nothing in the algorithm that has anything to do with political ideology,” Pichai said. 

Amazon Chief Executive Jeff Bezos endured questions about whether his company displayed products on its Internet market site to increase its revenue rather than present consumers with their best options.

Bezos denied the accusation. He also asked lawmakers to consider the benefit Amazon has brought to the U.S. economy, which included “hundreds of thousands of jobs across 42 states.”

Apple Chief Executive Tim Cook was asked about whether he limited competition among Internet app firms by unfairly restricting access to his company’s computers.

Cook replied that Apple sought only to ensure quality among apps the company sells consumers. He also said the number of apps sold on Apple Store has grown tremendously in recent years.

“We operate the App Store to help developers, not hurt them,” Cook said.

He also said, “If Apple is a gatekeeper, what we’ve done is open the gate wider.” 

Congress

Islands Sinking Due to Climate Change Asking for Help
Climate
Islands Sinking Due to Climate Change Asking for Help
March 5, 2021
by Tom Ramstack

WASHINGTON -- Islands that fall under U.S. protection asked Congress for help Thursday from the climate change that is making their shores sink into the ocean and subjecting them to devastating hurricanes. With so little land compared with the U.S. mainland, they are suffering some of... Read More

George Floyd Justice in Policing Act Passes in House
Congress
George Floyd Justice in Policing Act Passes in House
March 4, 2021
by Reece Nations

WASHINGTON — The House of Representatives passed the George Floyd Justice in Policing Act on Wednesday by a margin of 220 in favor and 212 opposed.  The bill was named after the Minneapolis man killed during an arrest in May 2020 that sparked protests nationwide. The... Read More

House Passes Blue Dog-Backed Redistricting Reform Measure
Congress
House Passes Blue Dog-Backed Redistricting Reform Measure
March 4, 2021
by TWN Staff

WASHINGTON - A Blue Dog Coalition-backed redistricting reform measure is among the key provisions of the H.R 1, For the People Act bill passed by the House Wednesday night. The language in the bill closely tracks what Rep. Jim Cooper, D-Tenn., included in his John Tanner... Read More

Immigration Advocates Weigh the Potential of Piecemeal Policies
Immigration
Immigration Advocates Weigh the Potential of Piecemeal Policies
March 4, 2021
by Kate Michael

WASHINGTON — Immigration, an often controversial political topic, has played an important role in American history and continues to shape the nation today. While the United States actually has one of the most open immigration policies in the world, accepting more immigrants and asylum-seekers than any... Read More

Takeaways: What Hearings Have Revealed About Jan. 6 Failures
Law Enforcement
Takeaways: What Hearings Have Revealed About Jan. 6 Failures

WASHINGTON (AP) — Many questions remain unanswered about the failure to prevent the Jan. 6 insurrection at the U.S. Capitol. But after six congressional hearings, it's clear that the Capitol Police were unprepared and overwhelmed as hundreds of Donald Trump's supporters laid siege to the building.... Read More

House Passes Sweeping Voting Rights Bill Over GOP Opposition
Congress
House Passes Sweeping Voting Rights Bill Over GOP Opposition

WASHINGTON (AP) — House Democrats passed sweeping voting and ethics legislation over unanimous Republican opposition, advancing to the Senate what would be the largest overhaul of the U.S. election law in at least a generation. House Resolution 1, which touches on virtually every aspect of the... Read More

News From The Well
scroll top