Though bi-partisanship seems to be a lost art, Republican and Democratic lawmakers can agree that Big Tech needs reigning in.
Lawmakers introduced bills designed to strengthen United States business competition. These bills hope to break the monopolies of Silicon Valley.
What do these new laws mean for tech companies and small businesses? Read on to find out.
Democratic Representative David Cicilline introduced bills last month designed to increase competition and limit tech monopolies.
These bills receive bi-partisan support. If passed, they will change the way tech companies operate.
American Choice and Innovation Online Act
Should this bill pass, tech companies can no longer give preferential treatment to their products on platforms that host competitor products.
This bill would make it illegal for Apple to promote company-affiliated apps on the iPhone. Doing so will spur competition among software companies and not allow for one company to dominate any market with a popular platform.
The Platform Competition and Opportunity Act
Tech companies didn’t develop into the monoliths they are today by offering better products.
They did so by buying their competition. This act will place more scrutiny on company mergers that kill competition and promote monopolies.
Tech companies with covered platforms can no longer buy a company unless it does not compete.
The purchasing company must also prove the acquisition will not increase or help maintain its current market position.
The Ending Platform Monopolies Act
This act prohibits tech companies from selling additional products or services a consumer might need to utilize a technological platform.
Take, for example, a music streaming service. Under this act, all streaming services must be available to use on all tech platforms. This bill may result in the fracturing of tech giants.
The Augmenting Compatibility and Competition by Enabling Service Switching Act
Social media companies hold and sell a user’s data. Because this data has a high monetary value, these companies make leaving a platform complicated.
This act helps consumers keep their data and makes it easier to switch or leave social media platforms.
President Joe Biden believes that the current state of American business harms consumers and workers. That’s why he signed an executive order aimed at increasing competition and privacy rights “across the board.”
The latest tech news flutter about the order concerns the increased scrutiny Biden wants on vertical mergers. These mergers involve companies who are not in direct competition but the same supply chain.
Should the government agencies follow the order’s suggestions, consumer internet privacy could improve. Read this article to find out more about the latest ransomware prevention.
Big Tech Scrutiny
Few can argue that modern technology changed American lives for the better. As the technology arms race continues, many lawmakers on both sides of the aisle are concerned with the power of Big Tech.
As competition dwindles, these companies can exert far more control over our lives and the market where they operate.
That could change soon as both Congress and President Biden show willingness to stem the tide of tech monopolization.
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