Sen. Warren Shakes Off EU Official’s Cautioning Against Breaking Up Big Tech
Sen. Elizabeth Warren, D-Mass., shrugged off EU Competition Commissioner Margrethe Vestager’s suggestion that Warren’s proposal to break up big tech is “far-reaching” (see 1903180058). “It would give competition a better chance to flourish, and that’s what competition law should be all about,” Warren told us.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The senator’s proposal to unwind acquisitions of Google, Facebook and Amazon has been a talking point this election cycle. Asked about the wisdom of Warren’s plan, Sen. Amy Klobuchar, D-Minn., cited her own proposal to tax platforms on data collection (see 1903190037). In a SXSW interview with Recode, Klobuchar likened online data collection to use of public infrastructure by trucks and trains. Use of highways and railways is subject to taxation, she said, and the tech industry’s use of large data sets could also be taxed. “Because otherwise, we’re just being used, right?” she said, noting it should be done in a way to that doesn’t limit innovation. Ex-Rep. Beto O’Rourke, D-Texas, warned, according to CNN, against using antitrust enforcement to address issues of online privacy, saying regulation is the better approach.
There’s “no question” the next administration’s DOJ should examine Google, Amazon, Facebook and other large companies from an antitrust perspective, South Bend, Indiana, Mayor Pete Buttigieg told Axios, saying the issue extends beyond the tech industry: “The U.S. has frankly let down its guard when it comes to monopoly policy, and too often the concentration of wealth has been allowed to turn into the concentration of power.” He said tech companies are extending tech dominance into alternative markets. Tech monopoly issues “are almost old-fashioned in their nature, and it requires a greater attention to the controls on monopoly power to keep our economy competitive and our democracy democratic,” he said.
Sen. Bernie Sanders, I-Vt., is an outspoken critic of Amazon business practices. He drove much of the discussion that led to the company's raising its minimum wage (see 1810020032). He also signed a letter with 15 Democrats in January, asking the FCC and the FTC to investigate wireless carrier practices of sharing user location tracking data with third parties (see 1901180034). “The wireless industry has repeatedly demonstrated a blatant disregard for its customers’ privacy. It is therefore vital that regulators take swift action to ensure that consumers are protected,” they wrote. Sen. Kamala Harris, D-Calif., also signed the letter. She has been at the forefront of FCC and FTC scrutiny on the issue (see 1901090066).
Racial disparity issues seem to be the focus for Sen. Cory Booker, D-N.J. In April, he joined Sen. Ron Wyden, D-Ore., and Rep. Yvette Clarke, D-N.Y., on a bill authorizing FTC regulations to “study and fix flawed computer algorithms” involving racial discrimination (see 1904100045). The legislation, Booker said, is a “key step toward ensuring more accountability from the entities using software to make decisions that can change lives.” In questions for the record for a recent Senate Judiciary Committee hearing on privacy (see 1903120072), Booker cited housing discrimination, employment discrimination, discriminatory police surveillance and voter suppression targeting African Americans.
The U.S. needs to break up big tech companies like Facebook, Google and Amazon, Rep. Tulsi Gabbard, D-Hawaii, tweeted. “Absolute power corrupts absolutely,” she wrote, noting she will be introducing related legislation in the House.
Warren’s plan is “worth considering,” said ex-Housing and Urban Development Secretary Julian Castro at a recent campaign event, according to The Washington Post. U.S. antitrust enforcement needs to be “much stronger,” and the most powerful individuals and corporations need more scrutiny, he said: “I don't understand how Amazon made $11 billion in profit last year, paid no federal taxes, and at the same time, New York was about to offer them a $3 billion package to locate their second headquarters.”
Sen. Kirsten Gillibrand, D-N.Y., was also critical of Amazon’s plan to pursue a new headquarters in New York City. “One of the wealthiest companies in history should not be receiving financial assistance from the taxpayers while too many New York families struggle to make ends meet,” she tweeted. She and former Vice President Joe Biden haven’t been vocal on many tech issues.
Ex-Rep. John Delaney, D-Md., pressed the FCC to deal with robocalls: “While it may not seem like the biggest policy issue in the world, my Administration will end all these ridiculous robocalls. How incredibly annoying are they. We need an FCC that does its job!” he tweeted. Entrepreneur Andrew Yang stated his support for restoring the Obama administration’s net neutrality rules. “It is imperative that we protect this technology so that all Americans can continue to enjoy unfettered and affordable access to the internet,” his campaign said.