House OKs scaled-down bill targeting Big Tech
WASHINGTON — The House on Thursday approved sharply scaleddown legislation targeting the dominance of Big Tech companies by giving states greater power in antitrust cases and increasing money for federal regulators.
The bipartisan measure, passed by a 242-184 vote, pales in comparison with a more ambitious package aimed at reining in Meta, Google, Amazon and Apple and cleared by key House and Senate committees. That proposal has languished for months, giving the companies time for vigorous lobbying campaigns against it.
The more limited bill would give states an upper hand over companies in choosing the location of courts that decide federal antitrust cases. Proponents say this change would avert the “homecourt advantage” that Big Tech companies enjoy in federal court in Northern California, where many of the cases are tried and many of the companies are based.
Many state attorneys general have pursued antitrust cases against the industry, and many states joined with the Justice Department and the Federal Trade Commission in their landmark lawsuits against Google and Meta (then called Facebook), respectively, in late 2020.
Under the bill, companies seeking approval for mergers would have to disclose subsidies from countries deemed to pose strategic or economic risks to the United States — especially China.
“We find ourselves in a monopoly moment as a country,” Rep. Lori Trahan, D-Mass., said before the vote. “Multibilliondollar corporations have grown into behemoths, eliminating any real competition in their industries and using their dominance to hurt small businesses and consumers. Meta’s monopoly power has enabled it to harm women, children and people of all ages without recourse.”
The Biden administration, which has pushed for antitrust legislation targeting Big Tech, endorsed the bill this week.
Even in reduced form, the legislation drew fierce opposition from conservative Republicans who split from their GOP colleagues supporting the bill. The conservatives objected to the proposed revenue increase for the antitrust regulators, arguing there has been brazen overreach by the FTC under President Joe Biden. If Republicans win control of the House or Senate in the November elections, they are certain to try to crimp the activism of the FTC and to challenge its broader interpretation of its legal authority.
The drafting of that legislation marked a new turn in Congress’ effort to curb the dominance of the tech giants and anti-competitive practices that critics say have hurt consumers, small businesses and innovation. But the proposal is complex and drew objections to some provisions from lawmakers of both parties, even though all condemn the tech giants’ conduct.
Lawmakers have faced a delicate task as they try to tighten reins around a powerful industry whose services, mostly free or nearly so, are popular with consumers and embedded into daily life.