bill is designed to prevent dominant online platforms—like Apple and Facebook and, especially, Google and Amazon—from giving themselves an advantage over other businesses that must go through them to reach customers. As one of two antitrust bills voted out of committee by a strong bipartisan vote (the other would regulate app stores), it may be this Congress’ best, even only, shot to stop the biggest tech companies from abusing their gatekeeper status. according to the tech giants and their lobbyists and front groups, the bill, which was introduced by Amy Klobuchar and Chuck Grassley, respectively the top Democrat and Republican on the Senate Judiciary Committee, would be a disaster for the American consumer. In an ongoing publicity push against it, they have claimed that it would ruin Google search results, bar Apple from offering useful features on iPhones, force Facebook to stop moderating content, and even outlaw Amazon Prime. It’s all pretty alarming. Is any of it true?
The legislation’s central idea is that a company that controls a marketplace shouldn’t be able to set special rules for itself within that marketplace, because competitors who object don’t have any realistic place to go. No business can afford to be left out of Google’s search index, and few online retailers can make a living if they’re not listed on Amazon. So the Klobuchar-Grassley bill, broadly speaking, prohibits self-preferencing by platforms that hit certain size thresholds, like monthly active users or annual revenue. To take a simple example, it would mean Amazon can’t give its in-house branded products a leg up over other brands when someone is shopping on its site, and Google can’t choose to give YouTube links when someone does a video search unless those links are objectively the most relevant. The bill would impose other constraints on Amazon, like preventing it from using data gleaned from third-party sellers to improve the sales of its own brands. (Last month, the House Judiciary Committee asked the DOJ to investigate Amazon executives for allegedly lying to Congress about whether the company does this.) But Mitchell, who supports the bill, says it doesn’t go far enough. She thinks a breakup is needed “Google devoted 41 percent of the first page of search results on mobile devices to its own properties and what it calls ‘direct answers,’ which are populated with information copied from other sources, sometimes without their knowledge or consent.” Keeping users on Google properties means more opportunities to show ads and more ways to take a cut of a transaction