House Democrats push Congress to break up Big Tech monopolies

to break up Big

Sponsored

UNITED STATES - MAY 21:  Tim Cook, CEO of Apple, testifies during a Senate Homeland Security and Governmental Affairs Subcommittee on Investigations in Dirksen Building titled "Offshore Profit Shifting and the U.S. Tax Code - Part 2." Cook and other Apple officials were on hand to explain the company's filings after the subcommittee accused Apple of tax avoidance. (Photo By Tom Williams/CQ Roll Call)


Tom Williams via

Congress should consider forcing the breakup of Apple, Amazon, and Google into smaller companies that can’t enter into adjacent lines of business (via NBC News). That’s the main recommendation of a 449-page Democrats on the House Judiciary subcommittee on antitrust published on Tuesday following the panel’s 16-month investigation into big tech that saw the CEOs from all four companies testify before Congress. They say all four companies enjoy monopolies in at least one of the verticals in which they operate.   

“During the investigation, Subcommittee staff found evidence of monopolization and monopoly power,” the report says. It goes on to argue the dominance of Apple, Amazon, Facebook and Google has “diminished consumer choice, eroded innovation and entrepreneurship in the U.S. economy, weakened the vibrancy of the free and diverse press and undermined Americans’ privacy.” 

Perhaps most notably, the report concludes Apple enjoys a monopoly in app distribution on iOS devices. “Apple leverages its control of iOS and the App Store to create and enforce barriers to competition and discriminate against and exclude rivals while preferencing its own offerings,” the report says. “Apple also uses its power to exploit app developers through misappropriation of competitively sensitive information and to charge app developers supra-competitive prices within the App Store.”

Apple’s control of the App Store is at the heart of the company’s ongoing legal feud with Fortnite developer Epic Games. In August, Epic bypassed the App Store with its Mega Drop promotion, giving mobile players the option to pay for the title’s in-game currency directly. When Apple removed Fortnite from the App Store, Epic launched a lawsuit against the company.

Developing…

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.

Comment



Comments

Share
2
Shares

Share

Tweet

Share


Go to Source

Author: {authorlink}
https://www.blogsmithmedia.com/www.engadget.com/media/feedlogo.gif?cachebust=true Engadget RSS Feed https://www.engadget.com/rss.xml

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics