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Tech bosses including Zuckerberg and Bezos face grilling from Congress – live Tech bosses including Zuckerberg and Bezos face grilling from Congress – live
(32 minutes later)
Top executives from US tech giants appear before House judiciary subcommittee over their companies’ massive wealth and power – follow liveTop executives from US tech giants appear before House judiciary subcommittee over their companies’ massive wealth and power – follow live
Upon return from the recess, finally a question for Bezos. Rep. Pramila Jayapal asks if Amazon accesses data from third parties to sell its own brands, asking Bezos for “a yes or no” answer.
Bezos gives a rambling response, declining to deny or confirm the allegation.
Jayapal notes that an April 2020 investigation from the Wall Street Journal found evidence that Amazon does engage in such anticompetitive practices. Amazon has access to data that “far exceeds” the sellers on the platform with whom it competes, the report found.
“So you can set the rules of the game for your competitors, but not actually follow those same rules for yourself,” she said. “Do you think that’s fair to the mom and pop third party businesses who are trying to sell on your platform?”
Another flashpoint in the first hours of the hearing - and one that arguably does not have to do with antitrust - was questions from Matt Gaetz of Florida regarding whether Google will continue to work with police despite backlash.
Pichai said Google has no plans to end police contracts. “Congressman, we are committed to continuing to work with law enforcement,” he said.
The hearing calls a ten minute recess to address technical issues - apparently related to Amazon’s feed. Maybe that’s why Bezos hasn’t been asked much yet.
Now Zuckerberg is being asked about the Cambridge Analytica scandal and hate speech on the platform.
He is asked about the recent boycott of Facebook by advertisers over hate speech.
“We’re very focused on fighting against hate speech and our commitments to those issues and fighting them go back years before this recent movement,” he said. “Since 2016, the defenses that the company is built out to help secure elections in the US and around the world.”
Apple CEO Tim Cook is addressed by Representative Hank Johnson of Georgia, who asks how Apple can so closely control its App Store without participating in anti-competitive behavior.
He said during the antitrust investigation Congress members heard concerns that rules governing the App Store review process are not available to the app developers.
“The rules are made up as you go and subject to change - and Apple expects developers to go along with the changes or leave the app store,” Johnson said. “That’s an enormous amount of power.”
Cook repeated his claims that the App Store is not a monopoly because it does not charge the vast majority of apps to list there. He said 84% of apps are not charged anything and Apple has not increased commissions on apps since 2008.
In the first few hours of testimony, Jeff Bezos has not yet been asked a single question. Poor Jeff!
Rep. Ken Buck of Colorado opens his questioning with a grand statement: “Capitalism is the greatest tool for freedom the world has ever seen,” he says, apropos of nothing.
He then criticizes Google for withdrawing from a $10bn Pentagon contract because it “does not align” with Google’s values while working on government projects in China, like the controversial project Dragonfly- a search engine that would work with the Chinese government.
“What values do Google and communist China have in common?” he asked executive Sundar Pichai.
Representative Jerry Nadler of New York is next in line to question the executives. He zeros in on Facebook’s history of acquiring competitors or stealing their ideas, referencing internal documents that revealed Facebook bought Instagram to neutralize it as a competitive threat.Representative Jerry Nadler of New York is next in line to question the executives. He zeros in on Facebook’s history of acquiring competitors or stealing their ideas, referencing internal documents that revealed Facebook bought Instagram to neutralize it as a competitive threat.
If so, the deal was illegal under antitrust laws and should be unwoven, legislators have argued.If so, the deal was illegal under antitrust laws and should be unwoven, legislators have argued.
“If this was an illegal merger at the time of the transaction, why shouldn’t Instagram now be broken off into a separate company?” Nadler asked.“If this was an illegal merger at the time of the transaction, why shouldn’t Instagram now be broken off into a separate company?” Nadler asked.
Zuckerberg said the acquisition was made in part to help Instagram build up its infrastructure and security as it experienced rapid growth. Nadler was not impressed with the answer.Zuckerberg said the acquisition was made in part to help Instagram build up its infrastructure and security as it experienced rapid growth. Nadler was not impressed with the answer.
“This is exactly the type of anticompetitive acquisition the antitrust laws were designed to prevent, and this should never have happened in the first place, it should never have been permitted to happen, it cannot happen again.”“This is exactly the type of anticompetitive acquisition the antitrust laws were designed to prevent, and this should never have happened in the first place, it should never have been permitted to happen, it cannot happen again.”
Representative Sensenbrenner launches again into his concerns about anti-conservative bias on social platforms, asking Zuckerberg why conservatives are “censored” on Facebook.Representative Sensenbrenner launches again into his concerns about anti-conservative bias on social platforms, asking Zuckerberg why conservatives are “censored” on Facebook.
“Conservatives are consumers too,” he said.“Conservatives are consumers too,” he said.
He specifically asked Zuckerberg why Donald Trump Jr. was removed from the platform for sharing a video containing false information this week. Zuckerberg politely explained to the representative that it was Twitter that limited Trump’s account for posting the video.He specifically asked Zuckerberg why Donald Trump Jr. was removed from the platform for sharing a video containing false information this week. Zuckerberg politely explained to the representative that it was Twitter that limited Trump’s account for posting the video.
The video in question was, however, removed from Facebook though no accounts sharing it were censored. Sensenbrenner asked Zuckerberg why the video, which made baseless claims about coronavirus, was removed. He said people should be allowed to share posts that hail hydroxychloroquine as a “cure” for coronavirus even though the drug has not been found to be an effective treatment.The video in question was, however, removed from Facebook though no accounts sharing it were censored. Sensenbrenner asked Zuckerberg why the video, which made baseless claims about coronavirus, was removed. He said people should be allowed to share posts that hail hydroxychloroquine as a “cure” for coronavirus even though the drug has not been found to be an effective treatment.
Zuckerberg said the video violates Facebook’s safety policies, which “prohibit content that will lead to imminent risk of harm”.Zuckerberg said the video violates Facebook’s safety policies, which “prohibit content that will lead to imminent risk of harm”.
“Stating that there is a proven cure for Covid when there is in fact not might encourage someone to go take something that could have some adverse effect, so we do take that down,” he said.“Stating that there is a proven cure for Covid when there is in fact not might encourage someone to go take something that could have some adverse effect, so we do take that down,” he said.
Zuckerberg, as he often does in Congressional hearings or when faced with criticism about accuracy on Facebook repeated his go-to line: “We do not want to be the arbiters of truth,” he said.Zuckerberg, as he often does in Congressional hearings or when faced with criticism about accuracy on Facebook repeated his go-to line: “We do not want to be the arbiters of truth,” he said.
Cicilline starts by assailing Alphabet chief executive officer Sundar Pichai with accusations of anticompetitive behavior from Google.Cicilline starts by assailing Alphabet chief executive officer Sundar Pichai with accusations of anticompetitive behavior from Google.
“So my first question, Mr. Pichai, is why does Google steal content from honest businesses?” Ciccilline said.“So my first question, Mr. Pichai, is why does Google steal content from honest businesses?” Ciccilline said.
He said small businesses have accused Google of taking their content and listing on its own pages. One example cited was Google in 2010 taking reviews from Yelp and cross-posting them to its own pages. When Yelp asked Google to stop, Google reportedly threatened to remove Yelp from its search listings entirely.He said small businesses have accused Google of taking their content and listing on its own pages. One example cited was Google in 2010 taking reviews from Yelp and cross-posting them to its own pages. When Yelp asked Google to stop, Google reportedly threatened to remove Yelp from its search listings entirely.
Cicilline said this behavior is “economically catastrophic” for other companies online.Cicilline said this behavior is “economically catastrophic” for other companies online.
“The evidence seems very clear to me that as Google became the gateway to the internet, it began to abuse its power,” he said. “It used its surveillance over web traffic to identify competitive threats and crushed them. It has dampened innovation and new business growth.”“The evidence seems very clear to me that as Google became the gateway to the internet, it began to abuse its power,” he said. “It used its surveillance over web traffic to identify competitive threats and crushed them. It has dampened innovation and new business growth.”
Finally Mark Zuckerberg provides his opening statement, attempting to set Facebook apart from the other companies on the stand today.Finally Mark Zuckerberg provides his opening statement, attempting to set Facebook apart from the other companies on the stand today.
He said acquiring other companies like Instagram is not monopoly behavior.He said acquiring other companies like Instagram is not monopoly behavior.
“Facebook stands for set of basic principles, giving people voice and economic opportunity, keeping people safe upholding democratic traditions like freedom of expression and voting and enabling an open and competitive marketplace,” he said.“Facebook stands for set of basic principles, giving people voice and economic opportunity, keeping people safe upholding democratic traditions like freedom of expression and voting and enabling an open and competitive marketplace,” he said.
Read Zuckerberg’s full testimony here.Read Zuckerberg’s full testimony here.
Tim Cook up next, arguing Apple does “not have a dominant market share” in any market where it does business. He addresses recent criticism that the rules surrounding Apple’s App Store unfairly charges companies to list apps.Tim Cook up next, arguing Apple does “not have a dominant market share” in any market where it does business. He addresses recent criticism that the rules surrounding Apple’s App Store unfairly charges companies to list apps.
“After beginning with 500 apps, today the App Store hosts more than 1.7 million – only 60 of which are Apple software,” Cook’s he said. “Clearly, if Apple is a gatekeeper, what we have done is open the gate wider. We want to get every app we can on the store, not keep them off.”“After beginning with 500 apps, today the App Store hosts more than 1.7 million – only 60 of which are Apple software,” Cook’s he said. “Clearly, if Apple is a gatekeeper, what we have done is open the gate wider. We want to get every app we can on the store, not keep them off.”
Read his full testimony here.Read his full testimony here.
Sundar Pichai of Alphabet is up next. He highlighted free tools used by teachers during the pandemic and said this “would not be possible without the long tradition of American innovation”.
He also mentioned Android as a platform that allows innovation of others. Pichai’s full testimony is here.
Following a tussle between Jordan and Cicilline, the tech executives were sworn in via video chat before giving their testimonies.
Bezos was up first, talking about his background with an immigrant father and a teenaged mother. He talked about using his parents’ life savings to start Amazon out of his garage in 1994.
“Unlike many other countries around the world, this great nation we live in supports and does not stigmatize entrepreneurial risk-taking,” he said.
He notes Amazon’s minimum wage is $15 an hour – double the national minimum wage, and that Amazon has invested “more than $270bn in the US over the last decade”.
Bezos stresses that Amazon has plenty of competition – including Walmart, which is twice Amazon’s size.
You can read the full testimony submitted by Bezos here.
Republican Jim Jordan of Ohio launched into a tirade about alleged discrimination of technology platforms against conservatives.
“I’ll just cut to the chase, Big Tech is out to get conservatives - that is a suspicion, not a hunch,” he said, before listing alleged examples of anti-conservative bias on social media platforms, including the removal of right wing news website Breitbart, donations from Google employees to then presidential candidate Hillary Clinton in 2016, and Twitter removing posts from Donald Trump calling for violence against protestors.
Jordan also became agitated when discussing unfounded reports of being “shadowbanned” by Twitter, in which he claims the platform demoted his tweets to make them less visible in the feeds.
It is unclear how much of this stems from Jordan’s personal beef with Twitter and how much is genuinely related to an antitrust hearing.
Now Republican representative Jim Sensenbrenner of Wisconsin is providing additional opening statements. He echoed many of Cicilline’s sentiments, saying the pandemic has underscored Americans’ reliance on these tech companies and with that dominance comes “increased scrutiny”.
He also put forward claims often repeated by Republican lawmakers – including Donald Trump – that big tech has an anti-conservative bias. Sensenbrenner said he is concerned “market dominance in the digital space is ripe for abuse, particularly when it comes to free speech.”
“Reports that dissenting views – often conservative views – are targeted or censored is seriously troubling,” he said. “Conservatives are consumers too.”
Cicilline continues with opening statements, laying into the four tech companies named in today’s hearings with intensive criticism.
He said they “bottleneck for a key channel of distribution,” use “control over digital infrastructure to surveil other companies” and “abuse control over current technologies to extend their power.”
“Simply put, they have too much power,” he said of Apple, Google, Amazon, and Facebook.
Cicilline said the companies “serve as critical arteries of commerce and communications” and thus have an outsized effect on American economy and democracy. What’s more, consumers have no ability to leave them.
“Open markets are predicated on the idea that if a company harms people, consumers, workers, and business partners will choose another option,” he said. “We are here today because that choice is no longer possible.”
And we’re off! The hearing has started as of 1.10 pm EST.
House antitrust chair David Cicilline kicks off the hearing explaining the intensive antitrust investigations and information gathering that leading up to the hearing, stressing that the effort has been bipartisan “from the beginning.”
The investigation of these companies included “millions of pages of evidence” from the firms and submissions of “more than 100 market participants,” he said. There were also five hearings held to examine the effects these companies have on the market, as well as 17 briefings and roundtables with 35 experts and stakeholders.
The CEOs will be “appearing” in Congress today remotely, using Cisco’s Webex videoconferencing platform, according to the New York Times.
Three of the four companies represented on Wednesday - Apple, Facebook, and Google - have their own video-calling software, none of which will be used in the hearing.
Webex has been the standard videoconferencing tool used by Congress since remote work began due to the coronavirus pandemic. It has been certified for security by the House’s administration committee.
Donald Trump tweeted ahead of the hearing on Wednesday threatening to take action if “Congress doesn’t bring fairness” to big tech.
The president has frequently criticized tech companies, especially as Twitter and Facebook have made recent attempts to fact check the president and remove false statements from his account.
The hearing has been delayed until 1 pm EST/10 am PST.
Hello, Kari Paul here, ready to guide you through today’s landmark antitrust hearing, in which Congress will grill top executives from Google, Apple, Amazon, and Facebook on their business practices.
Much of the testimony has been released in advance, so we know the main talking points of what the executives will be saying. Here’s a quick summary.
Facebook
The social platform faces criticism that it’s a monopoly in the space, having bought out or copied most of its competitors in recent years.
CEO Mark Zuckerberg is poised to argue that Facebook has a fair amount of competition in the space, and globally.
“Companies aren’t bad just because they are big,” his prepared statements said.
Google
Sundar Pichai, the chief executive of Google, will address the search platform’s dominance in the market. In his prepared remarks, he argues Google faces competition from growing social media platforms like Twitter and Pinterest.
“We know Google’s continued success is not guaranteed,” he said in his prepared remarks.
Apple
Chief executive officer Tim Cook will argue the company plays by the rules and faces a fair amount of competition in the market spaces where it operates.
He’ll address criticism that the rules surrounding Apple’s App Store, the only way through which iPhone users can download apps, constitute gatekeeping.
Amazon
Jeff Bezos is making a rare appearance in Congress today to defend the tech giant’s dominance in the retail space. Bezos, in his testimony, highlights his childhood and how Amazon came to be. He argues small sellers have succeeded on its third-party marketplace, a practice that has come under scrutiny from lawmakers.
For more background, read an explainer from our reporter Julia Wong here. The hearing will begin shortly, stay tuned for updates.