Conservatives Should Nix Support for Klobuchar's Tech Bill
Senator Amy Klobuchar’s (D-MN) big tech-bashing American Innovation and Choice Online Act (AICOA) has garnered significant Republican support, even though it does nothing to address the free speech issues that have so justifiably enraged conservatives.
Enactment of AICOA would have the practical effect of taking free speech reform at Big Tech off the table in the next session of Congress, while giving Klobuchar and her allies, including those at the Federal Trade Commission, even greater leverage in manipulating Big Tech companies.
It’s a trap that conservatives and Republicans must avoid.
The practical effect of AICOA is that it will penalize America’s five largest tech companies if they use their online platforms to unfairly advantage their own products and services or force users to behave contrary to their interests. Those companies are Facebook, Amazon, Google, Microsoft, and Apple.
Yet, there is little to no evidence today that any consumers are harmed by Big Tech’s practices. In fact, the legislation could very well undermine the consumer welfare standard, the method developed by U.S. Supreme Court nominee Robert H. Bork, for evaluating antitrust cases.
The standard asks: Does the alleged illegal corporate activity harm consumers? What consumers are harmed by the shopping options presented? What consumers are harmed by lower prices? Sen. Klobuchar and AICOA would ignore these questions.
Many small businesses have also thrived by being able to sell on online platforms, having more options than going through the significant restrictions that large retailers impose on new sellers. In addition to the U.S. Chamber of Commerce many small business organizations opposed to AICOA include the Small Business & Entrepreneurial Council, the U.S. Hispanic Chamber of Commerce, and the Small Business Roundtable.
There are also numerous, stringent antitrust laws already on the books. AICOA will not add to these protections. At a minimum, legal actions being pursued under current law should play out before the U.S. Senate considers voting on AICOA.
AICOA is about government interference of the worst kind in the U.S. economy. It amounts to Congress taking down businesses for their success. While this approach has been common in Europe, and as a result stifled innovation and curbed economic growth, it is not right for America’s dynamic economy.
Today’s large tech companies also face major competition on a variety of fronts. Large retailers have large online sales platforms. Oracle and PayPal are just some of the other large tech companies with the resources to develop new services to take on the biggest tech companies.
And there is no shortage of innovative tech companies that can attract billions in investments to unveil services. This includes fast-growing successful online retailers like Etsy and Shopify.
Furthermore, by weakening and restricting America’s tech sector, AICOA will aid and abet Communist China as it strengthens its technology companies with close ties to the military and intelligence communities.
Through investments and favorable regulation, China has been empowering companies like Huawei and TikTok to they can expand their economic and military reach at the expense of the U.S. AICOA passed a U.S. Senate Committee with no attention to these significant issues.
The full Senate should refrain from any vote on the matter until dangers are better understood.
AICOA does nothing to help American consumers. It empowers the Biden Administration to bash businesses and sow mischief. And it makes Democratic cooperation on free speech tech reforms far less likely in the next session of Congress.
Democrats simply will not go another round on tech legislation when they have captured the largest prizes, especially before the 2024 election.
