Justice Department Backs Antitrust Bill Targeting Big Tech
The Justice Department has endorsed legislation that will ban tech giants such as Amazon, Google and Apple from favouring their own products over those of competitors on their platforms.
This marks the first time the Biden administration has officially supported changes to antitrust laws.
“The Department views the rise of dominant platforms as presenting a threat to open markets and competition, with risks for consumers, businesses, innovation, resiliency, global competitiveness, and our democracy,” says a letter signed by Peter Hyun, the Justice Department’s acting assistant attorney general for legislative affairs.
“Discriminatory conduct by dominant platforms can sap the rewards from other innovators and entrepreneurs, reducing the incentives for entrepreneurship and innovation.
“Even more importantly, the legislation may support the growth of new tech businesses adjacent to the platforms, which may ultimately pose a critically needed competitive check to the covered platforms themselves.”
Amazon, Google, and Apple, other many others have opposed the legislation, saying it would damage their business model and make it difficult to offer services for free.
The legislation has now hurdled key committees in the House and Senate, although it still faces resistance from both sides of the floor. A number of senators have indicated they would like to see changes to the bill before supporting it on the floor.