Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Amazon, Apple, Facebook and Google Prepare for Their ‘Big Tobacco Moment’

Amazon, Apple, Facebook and Google Prepare for Their ‘Big Tobacco Moment’

The tech C.E.O.s will appear together at a congressional hearing on Wednesday to argue that their companies do not stifle competition.
After lawmakers collected hundreds of hours of interviews and obtained more than 1.3 million documents about Amazon, Apple, Facebook and Google, their chief executives will testify before Congress on Wednesday to defend their powerful businesses from the hammer of government.

The captains of the New Gilded Age — Jeff Bezos of Amazon, Tim Cook of Apple, Mark Zuckerberg of Facebook and Sundar Pichai of Google — will appear together before Congress for the first time to justify their business practices. Members of the House judiciary’s antitrust subcommittee have investigated the internet giants for more than a year on accusations that they stifled rivals and harmed consumers.

The hearing is the government’s most aggressive show against tech power since the pursuit to break up Microsoft two decades ago. It is set to be a bizarre spectacle, with four men who run companies worth a total of around $4.85 trillion — and who include two of the world’s richest individuals — primed to argue that their businesses are not really that powerful after all.
And it will be a first in another way: Mr. Zuckerberg, Mr. Pichai, Mr. Bezos and Mr. Cook will all be testifying via videoconference, rather than rising side-by-side for a swearing-in at a witness table in Washington. Perhaps appropriately, their reckoning will be broadcast online.

“It has the feeling of tech’s Big Tobacco moment,” said Gigi Sohn, a former senior adviser at the Federal Communications Commission and a fellow at Georgetown University’s law school, referring to the 1994 congressional appearance of top executives of the seven largest American tobacco companies, who said they did not believe that cigarettes were addictive.

The hearing, which caps a 13-month investigation by the House subcommittee, will be closely watched for clues that could advance other antitrust cases against the companies. The Federal Trade Commission, for one, is preparing to depose Mr. Zuckerberg and other Facebook executives in its 13-month probe of the social network. The Justice Department may soon unveil a case against Google. And an investigation into Apple by state attorneys general also appears to be advancing.

As a result, preparations for the hearing have been frenetic — even with the event postponed by a few days this week to accommodate the commemoration of Representative John Lewis — as tech lobbyists jockeyed behind the scenes to influence the types of questions that lawmakers might ask.

At the hearing, which starts at noon on Wednesday, the 15 members of the antitrust subcommittee will have five minutes for each question. Representative David Cicilline, Democrat of Rhode Island and the chairman of the subcommittee, will control the number of rounds of questioning, potentially stretching questioning into the evening.

The length of the hearing may also be prolonged since the antitrust issues facing Apple, Facebook, Google and Amazon are complex and vastly different.

Amazon is accused of abusing its role as both a retailer and a platform hosting third-party sellers on its marketplace. Apple has been accused of unfairly using its clout over its App Store to block rivals and to force apps to pay high commissions. Rivals have said Facebook has a monopoly in social networking. Alphabet, the parent company of Google, is dealing with multiple antitrust allegations because of Google’s dominance in online advertising, search and smartphone software.

Democrats may also veer off the topic of antitrust and bring up concerns about misinformation on social media. Some Republicans are expected to sidetrack discussion with their concerns of liberal bias at the Silicon Valley companies and accusations that conservative voices are censored.

“There was an attitude these were great American companies that created jobs and that we should have a hands-off approach and let them flourish,” Mr. Cicilline said in an interview. “But there are a lot of serious issues we have uncovered over the course of the investigation that weren’t apparent when we first began investigating.”

Facebook, Amazon, Google and Apple declined to comment.

For the chief executives, the hearing will be a test of how they perform under fire. Mr. Bezos, 56, has not previously testified to Congress, while Mr. Cook, 59, and Mr. Pichai, 48, have both testified once before. Mr. Zuckerberg, 36, the youngest of the group, has the distinction of being the veteran: He has answered questions at three congressional hearings in the past two years as Facebook has dealt with issues such as election interference and privacy violations.

But none are taking any chances for the event to go awry. Mr. Zuckerberg, who had been at his 750-acre estate on the Hawaiian island of Kauai, has been preparing for his testimony with the law firm WilmerHale, according to people with knowledge of the matter. And a small team is working with Mr. Bezos for his testimony in Seattle, said people with knowledge of the matter.

For weeks, the tech giants have also waged a lobbying battle to soften any blows. All four chief executives planned to call lawmakers on the House subcommittee in the days before the hearing, said three people with knowledge of the preparations who were not authorized to speak publicly.
Apple and Amazon also recently released studies to rebut claims of market dominance and anticompetitive practices. Last week, Apple publicized a study by a consulting firm called Analysis Group showing that the 30 percent commission it charges many apps for the right to appear on iPhones is close to what other platforms charge for distribution. The study left out that Apple helped popularize that 30 percent standard across the industry.

Amazon-funded economic consultants have in recent months argued that the e-commerce company’s business model, which is not grounded in selling ads like Google and Facebook, makes it less likely to violate antitrust laws. Last week, Amazon also released a report on small business, saying sales by third-party sellers grew 26 percent in the past year, outpacing Amazon’s own sales directly to consumers.

Google has said that the search and advertising tech markets that it dominates are changing fast. More than half of all searches for products on the internet originate on Amazon, Google’s lobbyists have said.

And Facebook’s Washington staff has pointed to competition from China, particularly from the popular video app TikTok, as evidence that competition in social media abounds. The Chinese-owned app is in the cross hairs of the Trump administration, which has threatened to ban it for national security reasons.

Big Tech’s rivals have also jockeyed to have their gripes brought up at the hearing, even if for just a few minutes. The House subcommittee has been flooded with proposed questions, documents and letters from the companies’ competitors, according to congressional staff and rivals.

Spotify, for instance, submitted questions about Apple’s dominance of the App Store. GreatFire, a China-based group, sent a letter with nine questions for Mr. Cook about Apple’s censorship of certain apps in China. Blix, a company whose email app competes with Apple and that is suing Apple in federal court for patent infringement, sent five questions to the subcommittee, including one on why Apple ranked its own apps ahead of rivals’ offerings in its App Store.

This month, David Heinemeier Hansson, the co-founder of Basecamp, a project-management tool, said he also briefed lawmakers on a recent public spat with Apple. Apple had denied Basecamp’s new email app from appearing in the App Store because it charged customers outside of Apple’s payment system. After Mr. Heinemeier Hansson complained publicly, Apple permitted the app with some minor changes.

The subcommittee’s members, who have already held five hearings about the tech giants, were informed and thoughtful during his briefing, Mr. Heinemeier Hansson said.

“Clearly there’s already a great resonance,” he said.

Even if the hearing results in more theater than substance, some said the greatest risk to the tech companies was increasing momentum toward regulations.

“The C.E.O.s don’t want to be testifying. Even having this collective hearing creates a sense of quasi-guilt just because of who else has gotten called in like this — Big Pharma, Big Tobacco, Big Banks,” said Paul Gallant, a tech policy analyst at the investment firm Cowen. “That’s not a crowd they want to be associated with.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×