The Mercury News

Tech firms prepare for big antitrust hearings

- By Cecilia Kang, Jack Nicas and David Mccabe

WASHINGTON >> After lawmakers collected hundreds of hours of interviews and obtained more than 1.3 million documents about Amazon, Apple, Facebook and Google, their chief executives will testify before Congress on Wednesday to defend their powerful businesses from the hammer of government.

The captains of the New Gilded Age — Jeff Bezos of Amazon, Tim Cook of Apple, Mark Zuckerberg of Facebook and Sundar Pichai of Google — will appear together before Congress for the first time to justify their business practices. Members of the House judiciary’s antitrust subcommitt­ee have investigat­ed the internet giants for more than a year on accusation­s that they stifled rivals and harmed consumers.

The hearing is the government’s most aggressive show against tech power since the pursuit to break up Microsoft two decades ago. It is set to be a bizarre spectacle, with four men who run companies worth a total of around $4.85 trillion and who include two of the world’s richest individual­s primed to argue that their businesses are not really that powerful after all.

And it will be a first in another way: Zuckerberg, Pichai, Bezos and Cook will all be testifying via videoconfe­rence, rather than rising side-by-side for a swearing-in at a witness table in Washington. Perhaps appropriat­ely, their reckoning will be broadcast online.

“It has the feeling of tech’s Big Tobacco moment,” said Gigi Sohn, a former senior adviser at the

Federal Communicat­ions Commission and a fellow at Georgetown University’s law school, referring to the 1994 congressio­nal appearance of top executives of the seven largest U.S. tobacco companies, who said they did not believe that cigarettes were addictive.

The hearing, which caps a 13-month investigat­ion by the House subcommitt­ee, will be closely watched for clues that could advance other antitrust cases against the companies. The Federal Trade Commission, for one, is preparing to depose Zuckerberg and other Facebook executives in its 13-month probe of the social network. The Justice Department may soon unveil a case against Google. And an investigat­ion into Apple by state attorneys general also appears to be advancing.

As a result, preparatio­ns for the hearing have been frenetic even with the event postponed by a few days this week to accommodat­e the commemorat­ion of Rep. John Lewis as tech lobbyists jockeyed behind the scenes to influence the types of questions that lawmakers might ask.

At the hearing, which starts at noon ET Wednesday, the 15 members of the antitrust subcommitt­ee will have five minutes for each question. Rep. David Cicilline, D-R.I., the chairman of the subcommitt­ee, will control the number of rounds of questionin­g, potentiall­y stretching questionin­g into the evening.

The length of the hearing may also be prolonged since the antitrust issues facing Apple, Facebook, Google and Amazon are complex and vastly different.

Amazon is accused of abusing its role as both a retailer and a platform hosting third-party sellers on its marketplac­e. Apple has

been accused of unfairly using its clout over its App Store to block rivals and to force apps to pay high commission­s. Rivals have said Facebook has a monopoly in social networking. Alphabet, the parent company of Google, is dealing with multiple antitrust allegation­s because of Google’s dominance in online advertisin­g, search and smartphone software.

Democrats may also veer off the topic of antitrust and bring up concerns about misinforma­tion on social media. Some Republican­s are expected to sidetrack discussion with their concerns of liberal bias at the Silicon Valley companies and accusation­s that conservati­ve voices are censored.

“There was an attitude these were great American companies that created jobs and that we should have a hands-off approach and let them flourish,” Cicilline said in an interview. “But there are a lot of serious issues

we have uncovered over the course of the investigat­ion that weren’t apparent when we first began investigat­ing.”

Facebook, Amazon, Google and Apple declined to comment.

For the chief executives, the hearing will be a test of how they perform under fire. Bezos, 56, has not previously testified to Congress, while Cook, 59, and Pichai, 48, have both testified once before. Zuckerberg, 36, the youngest of the group, has the distinctio­n of being the veteran: He has answered questions at three congressio­nal hearings in the past two years as Facebook has dealt with issues such as election interferen­ce and privacy violations.

But none are taking any chances for the event to go awry. Zuckerberg, who had been at his 750-acre estate in Hawaii, has been preparing for his testimony with the law firm WilmerHale, according to people with knowledge of the matter.

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