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Anti-trust reforms target Facebook, Apple, Amazon, Google

It’s hard to imagine lawmakers in Washington D.C. working together on anything. But they do agree on one thing: reigning in Google, Amazon, Facebook, and Apple.

What’s new: On Feb. 4, U.S. Senator Amy Klobuchar introduced the Competition and Antitrust Law Enforcement Reform Act. This would:

  • Make it more difficult for big tech mergers and acquisitions to occur;
  • Beef up the Federal Trade Commission and Justice Department’s antitrust enforcement resources.

The bill updates century-old antitrust law and aims to address alleged anti-competitive behavior that includes devouring startup rivals before they become a competitive threat.

“Competition and effective antitrust enforcement are critical to protecting workers and consumers, spurring innovation, and promoting economic equity. While the United States once had some of the most effective antitrust laws in the world, our economy today faces a massive competition problem. We can no longer sweep this issue under the rug and hope our existing laws are adequate. … The Competition and Antitrust Law Enforcement Reform Act is the first step to overhauling and modernizing our laws so we can effectively promote competition and protect American consumers.” —Sen. Klobuchar

What would change: The Competition and Antitrust Law Enforcement Reform Act would make five key changes to curb anti-competitive behavior:

  • Prohibit anti-competitive mergers: The Clayton Antitrust Act of 1914 only prohibits the most demonstrable anti-trust acquisitions, which has allowed big tech companies to evade scrutiny. The updated law would shift the burden to the merging parties to prove their merger will not violate the law.

  • Target harmful dominant firm conduct: The measure adds a new provision to the Clayton Act to prohibit “exclusionary conduct” by incumbent firms. Prohibited conduct is that which limits their competitors' ability to compete, presenting an “appreciable risk of harming competition.”

  • Independent oversight: The act established a new, independent FTC division to carry out market studies and merger retrospectives.

  • Increase enforcement: The measure would boost dilapidated FTC and DOJ enforcement budgets by about $1.1 billion and authorize increases to each agency’s annual budget.

  • Punitive power: The DOJ and FTC can seek civil fines for antitrust violations, study the effect of past mergers and strengthen whistleblower protections.

Cautious optimism: The Competition and Antitrust Law Enforcement Reform Act appears to be the most viable attempt in recent history to pass antitrust reform. Klobuchar’s bill adopts strategies that both House Democrats and some populist Republicans — specifically Sen. Josh Hawley and Rep. Ken Buck — have supported, which helps its prospects of adoption.

Defining ameba-like companies: Google, Facebook, Apple, and Amazon are each facing at least one antitrust suit already. Regulators, however, still face an enduring obstacle. In what market do these companies operate? The law would relieve regulators from the need to define a company’s market before filing an antitrust claim, which has hampered success in suits against tech companies that have complex markets and models.


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Indie opportunity? The bill's passage would have big implications for upstart tech companies that have historically been disadvantaged against incumbents that can simply buy and integrate their competitors’ tools.

If Google, Facebook, Apple, and Amazon are reigned in by regulators, that could create more openings for indie hackers. Insurgent startups could mature to create more competition, leading to more innovation, better products, and more consumer choice.

Would a more aggressive pursuit of anti-competitive behavior create more openings — in particular for indie social media, search, and other products?

No one really knows. But what is certain is more legal wrangling, finger-pointing, and creative interpretations of what anti-competitive behavior is.

Indie alternatives: If you’re looking for substitutes to mainstream tech tools, check out these recaps on alternatives to Google search, privacy-focused email, analytics, and communication tools.

  1. 2

    Dems control White House, Senate and House. Big tech donates primarily to Dems. This bill isn't going anywhere.

    "About 98% of political contributions from internet companies this cycle went to Democrats, according to the Center for Responsive Politics.": https://www.cnbc.com/2020/11/02/tech-billionaire-2020-election-donations-final-tally.html

    1. 1

      That Josh Hauley guy is a criminal and an insurrectionist. If these jokers are your best bet against the corporate proto-nations then policy = ¯\(ツ)/¯. 😅

      Meanwhile “anti-trust” has a completely different meaning for the repukes. It’s as if they don’t care for anyone’s trust at all. Especially, children.

      1. 0

        I don' t like either party so I'm with you there. What you failed to do is convince me my argument is wrong.

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          This comment was deleted 3 years ago.

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