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Direction of Antitrust Enforcement Could Harm American Global Competitiveness, Says Head of Think Tank

The head of the ITIF criticized DOJ and FTC antitrust enforcement that he said could impair American’s global position.



Photo of the antitrust panel at the 2022 LeadershIP conference, by Theadora Soter

WASHINGTON, April 11, 2022 — The president of a policy think tank last week criticized the Department of Justice and the Federal Trade Commission for allegedly taking antitrust action without considering the effect it might have on the nation’s international competitiveness.

“We have an antitrust regime in the US that has never ever considered international competitors. It is a very narrow framework that both the FTC and DOJ use. They don’t think about the implications of their actions on US competitiveness. Their only goal is to think about whether it is going to lead to more competition,” Robert Atkinson, president of the Information Technology and Innovation Foundation, said at the 2022 LeadershIP conference.

The Tuesday event was the first in-person meeting the intellectual property and innovation think tank has held since the pandemic began in March of 2020.

The comment comes at a time when the DOJ and FTC are working together to enforce antitrust laws in response to President Joe Biden’s executive order tasking officials to “adopt a whole of government approach to competition policy.” There have been complaints about the Biden administration’s actions in the past, including criticism from former FTC Chairman William Kovacic, who said that Biden’s direction of the FTC raises unfair expectations for the agency.

Atkinson also criticized the Democratic party’s view of antitrust enforcement as a whole. “We have this view, particularly from the anti-corporate progressive left, that says all profits should be at the cost of capital and no higher, and the way you get there is you weaken intellectual property. And the reason they think that, fundamentally, is that in their minds; in their worldview, the tension is not between the US and China, it is between capital and labor.”

Atkinson’s fellow panelist, Ellen Lord, former U.S. under secretary of defense for acquisition and sustainment, echoed his opinions.

“Sometimes this thought of equalizing things – everything for everybody so everybody gets a chance – kind of prevails because there’s a bit of a feeling that that strengthens us as a nation, whereas I have the exact opposite opinion, that if you do not incentivize companies by allowing them the benefits of what they do and then have that virtuous cycle, we as an economy, we as a global power, will begin to atrophy,” Lord said.

The DoJ has already supported legislation, including for example, the American Innovation and Choice Online Act, which seeks to prevent big technology companies like Apple, Amazon and Google from using their platforms to give a preference for their products over third-party products.


‘Time is Now’ for Separate Big Tech Regulatory Agency, Public Interest Group Says

‘We need to recognize that absolutely the time is now. It is neither too soon nor too late.’



Photo of Harold Feld, senior vice president at Public Knowledge

WASHINGTON, June 21, 2022 – Public Knowledge, non-profit public interest group, further advocated Thursday support for the Digital Platform Commission Act introduced in the Senate in May that would create a new federal agency designed to regulate digital platforms on an ongoing basis.

“We need to recognize that absolutely the time is now. It is neither too soon nor too late,” said Harold Feld, senior vice president at Public Knowledge.

The DPCA, introduced by Senator Michael Bennet, D-CO., and Representative Peter Welch, D-VT., would, if adopted, create a new federal agency designed to “provide comprehensive, sector-specific regulation of digital platforms to protect consumers, promote competition, and defend the public interest.”

The independent body would conduct hearings, research and investigations all while promoting competition and establishing rules with appropriate penalties.

Public Knowledge primarily focuses on competition in the digital marketplace. It champions for open internet and has openly advocated for antitrust legislation that would limit Big Tech action in favor of fair competition in the digital marketspace.

Feld published a book in 2019 titled, “The Case for the Digital Platform Act: Breakups, Starfish Problems and Tech Regulation.” In it, Feld explains the need for a separate government agency to regulate digital platforms.

Digital regulation is new but has rapidly become critical to the economy, continued Feld. As such, it is necessary for the government to create a completely new agency in order to provide the proper oversight.

In the past, Congress empowered independent bodies with effective tools and expert teams when it lacked expertise to oversee complex sectors of the economy but there is no such body for digital platforms, said Feld.

“The reality is that [Congress] can’t keep up,” said Welch. This comes at a time when antitrust action continues to pile up in Congress, sparking debate across all sides of the issue.

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FTC Commissioner Concerned About Antitrust Impact on Already Rising Consumer Prices

Noah Phillips said Tuesday he wants the commission to think about the impact of antitrust rules on rising prices.



Screenshot of Federal Trade Commissioner Noah Phillips

WASHINGTON, May 17, 2022 – Rising inflation should be a primary concern for the Federal Trade Commission when considering antitrust regulations on Big Tech, said Commissioner Noah Phillips Tuesday.

When considering laws, “the important thing is what impact it has on the consumer,” said Phillips. “We need to continue to guard like a hawk against conduct and against laws that have the effect of raising prices for consumers.”

Current record highs in the inflation rate, which means money is becoming less valuable as products become more expensive, has meant Washington must become sensitive to further price increases that could come out of such antitrust legislation, the commissioner said.

Phillips did not comment on how such movies would mean higher prices, but that signals, such as theHouse Judiciary Committee’s antitrust report two years ago, that reign in Big Tech companies and bring back enforcement of laws could mean higher prices. He raised concerns that recent policies are prohibiting competition rather than facilitating it.

This follows recent concerns that the American Innovation and Choice Online Act, currently awaiting Senate floor consideration, will inhibit America’s global competitiveness by weakening major American companies, thus impairing the American economy. That legislation would prohibit platform owners from giving preference to their products against third-party products.

This act is one of many currently under consideration at Congress, including Ending Platform Monopolies Act and Platform Competition and Opportunity Act.

Small businesses have worried that by enacting some legislation targeting Big Tech, they would be impacted because they rely on such platforms for success.

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Critics and Supporters Trade Views on American Innovation and Choice Online Act

American Innovation and Choice Online Act is intended to protect fair competition among businesses, but panelists differed on its impact.



Photo of Amy Klobuchar from August 2019 by Gage Skidmore used with permission

WASHINGTON, May 10, 2022 – Experts differed on the effect that antitrust legislation targeting big tech companies allegedly engaging in discriminatory behavior would have on small businesses.

Small businesses “want Congress not to do anything that will screw up or weaken the services that they rely on for their business,” said Michael Petricone, senior vice present of the Consumer Technology Association, at a Protocol Live event on Thursday.

Petricone said that antitrust bill would encourage tech companies to relocate to other countries, harming the American economy. He said small businesses would be affected the most.

Instead, Petricone called for  a “smarter immigration policy” to allow foreign innovators access to American tech market, as well as the defeat of the antitrust legislation.

But other said that small businesses suffer from predatory behavior by big tech companies. “Companies can’t get their foot in the door when there is already self-preferencing,” said Awesta Sarkash, representative for Small Business Majority, an advocacy organization, adding that 80% of small businesses say they want antitrust laws to protect them.

Self-preferencing on online platforms is detrimental to the success of small businesses who rely on social media advertising for business, she said. The new antitrust proposals would ensure an level playing field and promote fair competition, she said.

The American Innovation and Choice Online Act would prohibit certain online platforms from unfairly preferencing products, limiting another business’ ability to operate on a platform, or discriminating against competing products and services.

The bill sponsored by Sen. Amy Klobuchar, D-Minn, was introduced to the Senate on May 2 and is awaiting Senate floor consideration.

The debate follows concerns raised by both democrats and republicans about America’s global competitiveness as the bill would weaken major American companies.

If passed, the bill will follow the European Union’s Digital Services Act which similarly sets accountability standards for online platforms, preventing potentially harmful content and behavior.

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