Friday, June 25, 2021

House Panel Approves Plan To Help Break Up Tech Giants


House Panel Approves Plan to Help Break-Up Tech Giants. The Antitrust Push has triggered a huge Lobbying Fight by the Tech Companies and their Trade Groups against the Proposals. Rep. Pramila Jayapal (D-WA, 7th District) said the Bill was based on previous Antitrust Actions like the AT&T Breakup and the Initial proposed Breakup of Microsoft.

The House Judiciary Committee advanced its most aggressive Proposal for Restraining Silicon Valley's Behemoths, Thursday, Voting for a Bill that would make it easier to Break-Up Companies like Facebook and Google.

The 3 p.m. Vote on H.R. 3825 (117), the Ending Platform Monopolies Act, came one day and five hours after the Committee First began a Marathon series of Debates and Votes on Six Bills targeting Google, Apple, Facebook, and Amazon.

The Break-Up Bill was the most Controversial part of the Antitrust Package, drawing Opposition from Four of the Committee’s Democrats and only eking out Approval on a 21-20 Vote. The Measure garnered Yes votes from Reps. Ken Buck (R-CO, 4th District) and Matt Gaetz (R-FL, 1st District). Cori Bush (D-MO, 1st District), who originally opted to Vote Present, changed her Vote to push the Legislation through. Three other Members present for the rest of the Markup didn’t take part in the Final Vote: Lucy McBath (D-GA, 6th District) and Deborah Ross D-(NC, 2nd District) and Burgess Owens (R-UT, 4th District), who had Voted in favor of several of the other Antitrust Measures.

The Antitrust push has triggered a huge Lobbying Fight by the Tech Companies and their Trade Groups against the Proposals. It's also Split both the Democrats and Republicans, with Members of both Parties fighting For and Against the Legislation.

The Bill would allow Federal Regulators to Sue to Break-Up Companies that both operate a Dominant Platform and Sell their own Goods or Services on it, if the Arrangement poses an "irreconcilable conflict of interest.” The Bill would put Regulators on a Collision Course with Companies like Amazon that Compete with Third-Party Vendors on their own Marketplace.

"It was strong antitrust regulation that created the space for the great renaissance of technology that later drove a lot of the U.S. economy," said Jayapal, whose district includes Amazon's headquarters. "We don’t want innovation and competition to stop here; we want it to continue for many others."

The at-times Contentious Proceeding ended on a fairly high note, with an extended Discussion between Jayapal and several Republicans, including Rep. Dan Bishop (R-NC, 9th District), who offered an Amendment that would Streamline the Court Proceedings needed to Separate the Tech Companies. Although that Amendment wasn’t adopted, Jayapal pledged to work with Bishop on incorporating his Proposal before the Bill moves to the Floor. Antitrust Panel Chair Rep. David Cicilline (D-RI, 1st District) called the Streamlined Proposal “the most intriguing” Idea to emerge out of the Markup and pledged to continue Discussions about Changing the Bill to draw greater Support from GOP Members.

During the Markup Discussion, Gaetz urged his Republican Colleagues to Support the Legislation. “Many of my colleagues have talked about the need to break up Big Tech,” Gaetz said. “It's time to put your vote where your rhetoric has been."

Judiciary’s Top Republican Rep. Jim Jordan (OH-4th District) Voted Against the Measure and Five of the Six Bills in the Antitrust Package. In a Statement after the Markup, Jordan said the Bills do Nothing to address alleged Bias against Conservatives and Accused Democrats of allowing the Tech Companies to write the Legislation.

Those GOP Votes may prove Crucial if the Legislation ever receives a Floor Vote given Discontent among Democrats, particularly a Number from California.

At the Markup, Rep. Zoe Lofgren (D-CA, 19th District, San Jose), compared the Bill to a Grenade that would "blow up the tech economy." If the Tech Companies “were dominating overall in an impermissive way, you would see, like tall trees, things shriveling at the bottom, and that is not what we have found,” Lofgren said.

Lofgren and Eric Swalwell (D-CA, 15th District) and Lou Correa (D-CA, 46th District) Voted Against Five of the Six Antitrust Bills.

Immediately after the Markup, the Three Democrats sent a Joint Statement with Judiciary's Two California Republicans, Darrell Issa (50th District) and Tom McClintock (4th District, arguing the Legislation is "not close to ready for Floor consideration."

And while Dozens of Groups that Supported the Bills heralded their Advance, the Antimonopoly Advocacy Group American Economic Liberties Project, which had remained noticeably silent over the past Three weeks since the Package's introduction, released a Statement raising concerns about the Package. Sarah Miller, the Group's Executive Director, said the Bills defer too much to the Agencies, which don't have that good a Track Record, and expressed concern that Courts may read the Legislation too narrowly. "Addressing Big Tech’s abuses effectively as intended will require adjustments to the legislation," Miller said.

The Committee had previously Approved Five other Antitrust Bills, Wednesday and early Thursday morning.

Those are:

H.R. 3826 (117), which would prohibit dominant digital platforms from acquiring would-be rivals, a tactic that Facebook and Google have wielded especially aggressively.

H.R. 3816 (117), which would bar platforms such as Apple's App Store and Amazon's Marketplace from giving their own products unfair advantages over those of competitors.

H.R. 3849 (117), which the committee spent seven hours debating. It would make it easier for consumers to transfer their personal information from one digital service to another.

H.R. 3843 (117), which would increase the merger fees that regulators collect from companies.

H.R. 3460 (117), which would give state attorneys general control over which courts hear antitrust cases. That bill emerged after Google attempted to move one of its multistate antitrust suits from Texas federal court to a venue in its home state of California.










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