Recently, the US House Judiciary Committee approved several bills which set the stage for breaking up big tech companies and the monopolies they enjoy in their markets. The Wall Street Journal examines what a big-tech breakup could mean for end-users.
The laws: The controversial set of laws include the Ending Platform Monopolies Act (aimed at stopping companies from unfairly competing with businesses on their own platforms, like Amazon); the American Choice and Innovation Online Act (aimed at stopping companies from unfairly limiting access for businesses to their platforms, like Apple, Google); and The Platform Competition and Opportunity Act (aimed at stopping companies from acquiring a competitor before it can become a threat: Facebook); among others.
What companies are saying? Amazon argues that if the law goes through, it could lead to removing outside sellers from its platform, and even stopping free deliveries, significantly affecting businesses as well as customers’ choices.
- Apple argues that the American Choice and Innovation Online Act would expose its users to ransomware and other harmful content currently not allowed on its stores; however, lawmakers said it would ultimately give users a much broader choice of services.
- Alphabet, which controls 92% of the search market argues that the bill would lead to poor user experiences if the company isn’t allowed to promote apps like Google maps for search results, as the apps have now become second-nature for users.
- Facebook says the Platform Competition and Opportunity Act is “a poison pill for America’s tech industry at a time our economy can least afford it,” adding that it would stop users from being able to cross-post across its platforms, affecting their businesses; however the bill would also limit Facebook’s ability to create “all-encompassing dossiers” on users to sell to advertisers.
Source:getdailybrief
