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Amazon CEO Jeff Bezos speaks via video conference during a House Judiciary subcommittee in July Graeme Jennings/PA Images

Amazon, Apple, Facebook and Google have too much power and abuse their positions, US Congress report says

Democrats in the US are hoping to rein in the power of the tech giants.

US DEMOCRATS ARE calling for Congress to rein in several Big Tech companies, possibly forcing Facebook, Google, Amazon and Apple to break up their businesses.

The steps would also make it harder for such firms to acquire others and impose new rules to safeguard competition.

The proposals in a report issued yesterday follow a 15-month investigation by a House Judiciary Committee panel into the companies’ market dominance.

Those kinds of forced break-ups through a legislative overhaul would be a radical step for Congress to take toward a powerful industry.

The tech giants for decades have enjoyed light-touch regulation and star status in Washington, but have come under intensifying scrutiny and derision over issues of competition, consumer privacy and hate speech.

The 450-page report offers politicians a possible roadmap for action, potentially with a new balance of political power in Congress and a new president next year.

Democratic presidential contender Joe Biden has said company break-ups should be considered. If such steps were mandated, they could bring the biggest changes to the tech industry since the federal government’s landmark case against Microsoft almost 20 years ago.

The investigation found, for example, that Google has monopoly power in the market for search, while Facebook has monopoly power in the social networking market. The report said Amazon and Apple have “significant and durable market power” in the US online retail market, and in mobile operating systems and mobile app stores, respectively.

Some critics of the companies have singled out Facebook’s Instagram and WhatsApp services and Google’s YouTube and Android cellphone operating system as among the businesses that should be considered for divestiture.

The report said the four companies had abused their market power by charging excessive fees, imposing tough contract terms and extracting valuable data from individuals and businesses that relied on them.

“Each platform now serves as a gatekeeper over a key channel of distribution,” the report says. “By controlling access to markets, these giants can pick winners and losers throughout our economy.”

In addition to proposing separations of some dominant tech platforms from the companies’ other businesses, the report also calls for the platforms to be required to offer equal terms for equal products and services for all users. It proposes laws be changed to impose a higher bar for approving future tech industry mergers and acquisitions.

It also asks Congress to boost the enforcement powers of anti-trust regulators, such as the Federal Trade Commission, and to increase the budgets of the FTC and the Justice Department’s anti-trust division.

Although the Judiciary anti-trust sub-committee’s investigation was bipartisan, Republican politicians on the panel did not sign on to most of the recommendations.

Republicans issued their own report yesterday titled “A Third Way to Take on Big Tech”.

Authored by House of Representatives member Ken Buck of Colorado, it called for “targeted” enforcement of existing anti-trust laws rather than “onerous and burdensome regulation that kills industry innovation”.

Google took issue with both reports, saying they contained “outdated and inaccurate allegations from commercial rivals” about Google’s search engine and other services.

“Americans simply don’t want Congress to break Google’s products or harm the free services they use every day,” the company said in a statement.

“The goal of anti-trust law is to protect consumers, not help commercial rivals. Many of the proposals bandied about … would cause real harm to consumers, America’s technology leadership and the US economy — all for no clear gain.”

Facebook said acquisitions “are part of every industry, and just one way we innovate new technologies to deliver more value to people”.

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    Mute Richard Russell
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    Oct 7th 2020, 9:18 AM

    RTE have too much power here we are in the middle of a pandemic and they have an army of tv licence inspectors touring the country spreading the virus

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    Mute Seaniecp
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    Oct 7th 2020, 9:21 AM

    @Richard Russell: huh…..

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    Mute K C
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    Oct 7th 2020, 9:37 AM

    @Richard Russell: lol

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    Mute DJ François
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    Oct 7th 2020, 1:32 PM

    @Richard Russell: worst whataboutery ever

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    Mute Stephen Brady
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    Oct 7th 2020, 6:39 PM

    @Richard Russell: in fairness tv licence guy works for an post not rte

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    Mute Caoimhín O'Cheallacháin
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    Oct 7th 2020, 9:43 AM

    About time

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    Mute The Upside-down Triangle
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    Oct 7th 2020, 11:44 AM

    @Caoimhín O’Cheallacháin: yes, this now paves the way for Chinese companies to take over and be the most powerful and richest companies on the New York Stock Exchange in the next 10-15 years. I’ve a funny feeling China won’t mind them being too big when this happens.

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    Mute DJ François
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    Oct 7th 2020, 1:33 PM

    @The Upside-down Triangle: takeovers can be blocked under all sorts of laws

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    Mute The Upside-down Triangle
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    Oct 7th 2020, 2:32 PM

    @DJ François: no I mean Chinese companies will surpass American ones as the most powerful. There’s already more Chinese companies listed on the S&P 500 than American ones for the first time in history.

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    Mute Da_Dell
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    Oct 7th 2020, 11:25 AM

    Google is one of the most dangerous companies in the world, with stated aims of directly influencing people to make decisions that they want them to make. They have been found to also be meddling with democracy and interfering with elections. There has and is ongoing cases against them for same. They are also invested in many other activities like oil and gas exploration while pretending to be green.

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    Mute Celtic Spirit
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    Oct 7th 2020, 1:34 PM

    @Da_Dell: if you haven’t seen or heard of it, look up The Social Dilemma on Netflix.

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    Mute Da_Dell
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    Oct 7th 2020, 3:46 PM

    @Celtic Spirit: Is that the one about Facebook, Ive seen one by PBS ? Truly shocking stuff.
    Search, not with google of course for the Google head of UX leaked video, or any of the Google whistleblowers that have been brave enough to leave.

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    Mute Richard Russell
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    Oct 7th 2020, 9:18 AM

    RTE have too much power, we are in the middle of a pandemic and they have an army of tv licence inspectors touring the country spreading the virus

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    Mute Shane Cormican
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    Oct 7th 2020, 9:26 AM

    @Richard Russell: you ok hun?

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    Mute Rachel O' Meara
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    Oct 7th 2020, 9:36 AM

    @Richard Russell: An army of them, on tour? Clearly a well planned coup! Tell us more.

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    Mute K C
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    Oct 7th 2020, 9:37 AM

    @Richard Russell: you can say that again…..

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    Mute K C
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    Oct 7th 2020, 9:38 AM

    @Rachel O’ Meara: did you not hear it’s part of the new police state. It’s the end of the world. Gemma o d and her cronies warned us. We should of listened. LOL!!

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    Mute Rachel O' Meara
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    Oct 7th 2020, 9:50 AM

    @K C: Clearly we were all wrong, wonder if it’s to do with 5G? That’ll be it you know, tv inspectors in disguise working on behalf of R.T.E going around installing 5G brain chips in us while we’re asleep so R.T.E can control us for the government and big pharma. It’s such a dastardly plan, can’t believe we were lulled into such a false sense of security. Well we all know now so take heed people, sleep with your eyes open from now on that way you’ll see them coming for you. Gemms and her cronies are having panic attacks reading our comments I’d say! Relax lads it’s as made up as the stuff Gemms herself comes out with.

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    Mute K C
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    Oct 7th 2020, 1:31 PM

    @Rachel O’ Meara: yep it’s 5G and the illuminati. We should make Gemma our dictator and there would be no problems in the country haha

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    Mute DJ François
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    Oct 7th 2020, 1:34 PM

    @Richard Russell: bit early to be on the sauce Ricky

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    Mute Wade Wilson
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    Oct 7th 2020, 9:56 AM

    That worked so well when they did it with the phone company in America. A couple decades later they all merged back in to a handful of companies who now operate as a single oligarchy.

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    Mute Jointheclubtoo
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    Oct 7th 2020, 10:21 AM

    @Wade Wilson: True, but they have to try, start somewhere.

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    Mute Twitruser2020
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    Oct 7th 2020, 11:16 AM

    Break em up!

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    Mute Anto O Rourke
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    Oct 7th 2020, 12:48 PM

    Oh the hypocrisy…

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    Mute Shawn O'Ceallaghan
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    Oct 7th 2020, 1:24 PM

    Microsoft?

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