House Panel Calls for Congress to Break Up Tech Giants
October 06 2020 - 5:13PM
Dow Jones News
By Ryan Tracy and John D. McKinnon
WASHINGTON -- America's biggest technology companies have
leveraged their dominance to stamp out competition and stifle
innovation, according to a Democratic-led House panel, which called
on Congress to force tech giants to separate popular online
platforms from other business lines.
The report released Tuesday from Democratic staff of the House
Antitrust Subcommittee capped a 16-month inquiry into the market
power of Amazon.com Inc., Facebook Inc., Alphabet Inc.'s Google and
Apple Inc.
It says Facebook and Google have monopoly power, while Apple and
Amazon have "significant and durable market power," and criticizes
U.S. antitrust enforcement agencies for failing to curb their
dominance.
The 449-page report recommends Congress consider a series of
measures in response, including legislation forcing them to
separate their popular online platforms from other business lines
as well as changes to antitrust laws to reinvigorate a perceived
lack of strong enforcement.
On its own, the report carries no legal consequences. Lawmakers
hope the findings it contains will spur policy makers to
action.
"To put it simply, companies that once were scrappy, underdog
startups that challenged the status quo have become the kinds of
monopolies we last saw in the era of oil barons and railroad
tycoons," the report says. "These firms have too much power, and
that power must be reined in and subject to appropriate oversight
and enforcement. Our economy and democracy are at stake."
Republicans on the House panel didn't sign on to the report, and
have said in interviews in recent days that while they share
concerns about the tech companies, they don't agree with some of
the Democrats' farther-reaching policy recommendations.
"It's very important that we proceed with a scalpel and not a
chain saw, " said Rep. Ken Buck (R., Col.), a member of the
subcommittee.
The companies are expected to vigorously challenge the report's
findings.
Ahead of the report's release, the Consumer Technology
Association, an industry group, published a statement saying the
tech sector is "the reason for America's global innovation
leadership and powers our economy" and warned against action
hamstringing its most successful companies. "To undercut our
nation's 'crown jewel' companies would take our competitiveness out
at the knees."
(END) Dow Jones Newswires
October 06, 2020 16:58 ET (20:58 GMT)
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