Lawmakers Seek to Push Antitrust, Privacy Bills as Big Tech Revamps Lobbying Efforts

Google, Meta, Amazon and Apple have been living for the last years with the threat of new legislation in the U.S. that could limit their ability to operate their platforms, and especially during the last 18 months since President Joe Biden took office.

But the approach of the midterm elections in November and the unofficial kickoff of the midterm campaign season in August have encouraged lawmakers to seek a last push to some of the most notorious bills affecting Big Tech firms, namely, the American Choice and Innovation Online Act and most recently, the American Data Privacy and Protection Act.

The latter is the first attempt by lawmakers to draft a comprehensive privacy and data protection federal law. Last Friday (June 3), three of the four top congressional negotiators working on privacy released a draft bill that would require companies to collect the least amount of data necessary to provide a service. The bill would also prohibit the collection, processing or transferring of Social Security numbers, biometric information, nonconsensual intimate images and genetic information. Transfers of an individual’s precise geolocation information, passwords, aggregated internet search or browsing history, or their “physical activity information” (from a smartphone or wearable device) are also restricted.

The draft bill also establishes rights for consumers to opt out of targeted advertising (coincidentally, Meta is developing “Basic Ads” which will use much less data), it will prevent companies from using ad-targeting to kids up to age 16. Furthermore, within a year of enactment of the bill, the Federal Trade Commission will be tasked with issuing guidance regarding data minimization.

The bill also includes a provision that would allow the federal privacy law to preempt state privacy laws with a few exceptions.

The bill comes with the support of some lawmakers, and Big Tech firms haven’t raised concerns yet. “Strong baseline privacy protections are key to consumer trust and we appreciate members of Congress working toward this goal,” said Matt Schruers, president of the Computer & Communications Industry Association (CCIA), which advocates for Big Tech firms. Google President of Global Affairs Kent Walker said in April that “the time to act is now” on federal privacy legislation, adding that it “would align us all on the privacy measures that people want and promote confidence in U.S. companies and our digital ecosystem.”

Read more: FTC Chair Wants to Step up Privacy Protection With New Rules

Yet, despite bipartisan support, the proposal still faces significant hurdles to becoming law this year. First, Sen. Maria Cantwell, chair of the Senate Commerce Committee, hasn’t signed on and is looking at similar legislation that would give consumers more ways to sue over violations. Second, the private rights for individuals to sue companies provided in this draft bill will be opposed by some industry groups as the U.S. Chamber of Commerce has already noted, stating that it will use its firepower to oppose a text with “a blanket private right of action” allowing consumer to sue.

But the other hurdle for this bill to pass in the near future is that Congress is also trying to move forward with another important bill, the American Choice and Innovation Online Act (the antitrust bill).

The antitrust bill, if approved, would prohibit dominant tech platforms from unfairly ranking their services above those of rivals. Big Tech firms are ramping up lobbying efforts as Congress prepares to vote on this legislation.

“This is one of the most significant campaigns that we have run in recent years,” said Schruers. “That is because there has never been so serious a proposal to undermine U.S. competitiveness and put U.S. users at risk.”

Google Chief Economist Hal Varian, in a recent fireside chat, discussed the potential unintended consequences of the proposal and the risks of reducing innovation and startup formation. Similarly, Amazon also warned in a blog post on June 1 that if this bill is approved, it could affect the “promise of fast, free shipping through Amazon Prime,” and it would harm consumers’ experience.

Proponents of the bill have been working effortlessly for the last month to put the bill to a vote, according to CNBC sources. For instance, Senate Majority leader Chuck Schumers met about the status of the legislation on May 18 with Senators Dick Durbin and Amy Klobuchar, chairs of the Judiciary Committee and subcommittee on antitrust, respectively. As a result, the senators released the latest version of the bill last week, and the sources suggested that it would be put on the floor for a vote by early summer.

While the window to pass reforms before the midterm elections is closing, lawmakers seem to be ready to push for legislative reforms.