Congress said that months of grueling investigations led to more than a million documents to support their case.
Lawmakers will be facing the chief executives of the most powerful tech companies – Facebook, Amazon, Apple, and Google in a long marathon of hearings. Over the years, the tech industry has been skirting many scrutinies for many reasons, mainly on antitrust. Since June, Congress has been investigating the aforementioned companies and this investigation ends with a showdown with the CEOs this Wednesday. The immense power that these tech giants hold and its implications in the economy will be the main topic in the hearing before the House Judiciary Antitrust Subcommittee.
Companies fight back
The companies are taking in varying measures to fight back. In their opening statement, all CEOs went into different approaches as well. Amazon Apple argued that they have opened jobs and opportunities for millions of people. Their platforms have also allowed others to set-up their businesses. Despite the power that these companies hold, both said that they are still facing intense competition from the global market.
Tech giants speak of competition
Amazon is the biggest online retailer in the US but Bezos points out that his company is facing competition fro other companies including Walmart, and newer ones such as Instacart and Shopify. Bezos also points out that his company is opening opportunities for small and medium-sized businesses. Amazon has been able to create more than 2.2 million jobs globally.
Google as well claims that even when it’s the most used search engine, there is still competition from other platforms such as Amazon’s Alexa, WhatsApp, Snapchat, Pinterest, and Twitter. All these platforms also provide information that users are searching for. Google Ads will also be included in the upcoming hearings.
What does this mean for you?
Critics are pushing both Google and Facebook to promote competition and to reduce the concentration of power. In the 90s, Microsoft was found guilty of violating the Sherman Antitrust Act. The court asked Microsoft to divide the company, however, the company appealed and overturned the decisions. Later on, the case was settled.
This may be a precedent to the present case. The companies may face fines and other punishments but it’d be a long shot to say that these companies be forced to be broken down into smaller companies. Whatever the decision may be, businesses that are in any of the platforms may be affected by the changes.