November 25, 2020

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Alleged to enjoy “monopoly power”, Apple, Amazon and other four major technology giants may face split

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Apple,Amazon, Funny Blog News

In a nearly 450-page report, the Democratic Party staff listed their gains from the hearings, interviews, and searched 1.3 million documents during the entire investigation process, and concluded that the four major technology companies mentioned above They hold monopoly power and recommend that Congress amend the anti-monopoly law, which may result in the divestiture of some of their businesses.

Apple,Amazon, Funny Blog News

Tencent Securities, October 7th, a report prepared by the staff of the Democratic Party of the U.S. Congress recommends amendments to the antitrust law and its enforcement, which may bring major changes to large technology companies, such as divesting or separating some of their businesses, or making Its acquisition of small companies has become more difficult and so on.

After a 16-month investigation into the competitive behavior of Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB), and Google (NASDAQ:GOOGL), the Democratic Party staff found that these four Companies occupy monopoly power and need to be restrained by Congress and law enforcement.

In a nearly 450-page report, the Democratic Party staff listed their gains from the hearings, interviews, and searched 1.3 million documents during the entire investigation process, and concluded that the four major technology companies mentioned above They hold monopoly power and recommend that Congress amend the anti-monopoly law, which may result in the divestiture of some of their businesses.

The recommendations in this report include:

-Implement structural separation, and prohibit platforms that dominate in a certain field from entering adjacent business fields. This means that the solutions proposed by the Democratic Party staff include forcing technology companies to be split up, or implementing a business structure so that different business lines are functionally separated from the parent company. For example, this may force Google to spin off YouTube, or force Facebook to adopt the same approach to Instagram and WhatsApp. The chairman of the subcommittee, David Cicilline, previously referred to this method as a “Glass-Steagall Act” of the Internet, which was a commercial banking business in the 1930s. Separate laws from investment banking.

-Instruct the antitrust agency to assume that the dominant platform is anti-competitive, and transfer the responsibility to the acquirer, and let them prove that their transaction will not harm competition, rather than let the law enforcers prove that it will harm competition.

-Prevent dominant platforms from favoring their own services, but let them provide “equal products and services with equal conditions.”

-Require dominant companies to make their services compatible with competitors and allow users to transfer their data.

-Overriding the “problematic precedent” in the antitrust case law.

-The US Federal Trade Commission (FTC) is required to collect data on concentration on a regular basis.

-Increase the budget of the Federal Trade Commission and the Antitrust Division of the Department of Justice.

-Strengthen private law enforcement by removing mandatory arbitration clauses and restrictions on class actions.

Republicans expressed opposition to some of the bolder proposals in the report, such as the implementation of structural separation. According to a draft version that has flowed out, Republican Representative Ken Buck of Colorado is a key ally of the subcommittee’s majority and has always supported antitrust reforms. He has prepared his own response to this report. The report outlines “common ground” and “unfeasible” areas. A Republican spokesperson confirmed that Jim Jordan, a senior member of the Judiciary Committee and Ohio Republican, plans to issue his own response to allegations of prejudice against conservatives on Internet platforms, which companies have repeatedly denied.

But Buck emphasized in his response that he supports the aforementioned investigation and its findings, and continues to promote anti-monopoly reforms between the two parties.

The Democratic Party’s report found that these four technology companies hold monopoly power in the following areas:

Apple: Distribute software applications on iOS devices.

Amazon: Most third-party sellers and many suppliers.

Facebook: Online advertising and social networking.

Google: Search online.

An Amazon spokesperson said in a statement: “All large organizations will attract the attention of regulators, and we welcome this review. But by definition, large companies do not occupy a dominant position and believe that success can only be counterproductive. The assumption of the outcome of competitive behavior is completely wrong. However, despite the overwhelming evidence to the contrary, these fallacies are still at the core of this regulatory war of words about antitrust. This flawed thinking will have a major impact and force data. Millions of independent retailers withdraw from online stores, thus depriving these small businesses of one of the fastest and most profitable ways to reach customers. For consumers, the result will be fewer choices and higher prices. These concepts will not Enhancing competition will weaken competition.”

Representatives of Apple, Facebook and Google have yet to respond to this report.

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