Apple, Amazon, Facebook, Google face claims of ‘harmful’ power
The heads of some of the world’s biggest tech companies have appeared before Washington lawmakers to defend their firms against claims they abuse their power to quash competitors.
Amazon boss Jeff Bezos said the world “needs large” firms, while the heads of Facebook, Apple and Google argued their companies had spurred innovation.
The appearance comes as lawmakers consider tougher regulation and competition probes are under way.
Some critics want the firms broken up.
Congressman David Cicilline, a Democrat leading the congressional committee holding the hearing, said a year-long investigation by lawmakers had revealed patterns of abuse by the online platforms.
“The dominant platforms have wielded their power in destructive, harmful ways in order to expand,” he said.
What are the concerns about the tech giants?
At Wednesday’s hearing, lawmakers accused Google of having stolen content created by smaller firms, like Yelp, in order to keep users on their own web pages.
Amazon’s treatment of sellers on its site, Facebook’s acquisition of competitors such as Instagram, and Apple’s App store also drew attention.
“Amazon’s dual role… is fundamentally anti-competitive and Congress must take action,” he said.
However, some Republicans signalled they were not prepared to split up the firms or significantly overhaul US competition laws, with one committee member saying “big is not inherently bad”.
Republican concerns focused on perceived political bias at the firms, which they accused of suppressing conservative views.
“I’ll just cut to the chase – big tech is out to get conservatives,” said Congressman Jim Jordan, a Republican from Ohio.
What did the companies say?
Appearing by remote video, the executives defended their companies, saying their products helped smaller businesses and they remained vulnerable to competition from newcomers.
Apple boss Tim Cook said the business climate was “so competitive I would describe it as a street fight for market share in the smartphone business”.
Mr Bezos, in his first appearance before Congress, denied that Amazon’s multiple roles were a conflict of interest, but he admitted the firm was reviewing its handling of sales data from sellers on the site.
The company has been accused of using such information to launch its own version of hot-selling products.
Mr Bezos said Amazon rules forbid staff from looking at sales data from individual companies, but he conceded it was possible that employees had violated the policy.
“We are investigating that,” he said.
In his prepared remarks, Mr Bezos said Amazon faced significant competition from firms such as Walmartand noted that the company lost money for years as it branched out into new areas.
“I love garage entrepreneurs – I was one. But, just like the world needs small companies, it also needs large ones. There are things small companies simply can’t do,” he said.
What has Donald Trump said?
US President Donald Trump is a long-time critic of Amazon and threatened his own action on Twitter, writing: “If Congress doesn’t bring fairness to Big Tech, which they should have done years ago, I will do it myself with Executive Orders.”
He also told reporters that White House officials would be watching the hearing closely.
“There’s no question that what the big tech companies are doing is very bad,” he said.
SOURCE: BBC NEWS