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The US tech titans will have to leave the main business according to the plan of the House of Representatives Business և economics news


Democrats and Republicans on the House Judiciary Committee introduced legislation, among other measures, that bar tech companies from doing business that competes with other products or services.

Amazon.com Inc., Apple Inc. այլ Other U.S. tech giants will have to sell or exit their core business under antitrust legislation proposed by House lawmakers.

Democrats and Republicans in the House Judiciary Committee on Friday introduced legislation that prohibits, among other things, technology companies from doing business that competes with other products or services on their platforms.

If passed, Amazon would be barred from selling its own brands, such as Amazon Basics, or Apple would offer Apple Music, or Google would offer specialized search services for travel, local business, or shopping.

The offer could also threaten Google’s $ 23 billion display advertising business. Google exchanges for advertising transactions, provides the technology used by site publishers, advertisers to buy and sell digital advertising, but it also competes in the market as a buyer-seller.

“Unregulated tech monopolies have a huge impact on our economy,” said David Cicilin, a Democrat from Rhode Island who led a 16-month commission of inquiry into the strengths of four tech giants: Apple, Facebook Inc., Amazon and Google. :

The board concluded that the four companies were abusing their dominance in the digital markets to disrupt competition. “Our agenda is to level the playing field, to ensure the richest, most powerful technological monopolies, which play by the same rules as the rest of us,” said Cicilin.

“Big Tech has abused its dominance in the marketplace to beat its competitors, to censor words, to see the world as we understand it to be in control,” said Ken Buck, a Republican in Colorado.

The bill is part of a package of bipartisan-assisted legislation aimed at giving antitrust enforcement officers new legal tools to acquire dominant technology companies accused of stifling competition in digital markets.

The measures will also make it more difficult for large technology companies to establish mergers and impose additional restrictions on how they manage their platforms.

The package has been praised by antitrust experts, who say the technology giants have used their power to isolate themselves from competitive threats, and that the current law is insufficient to challenge companies.

Charlotte Sleman, director of policy at the Washington Public Knowledge Competition, says the bills will go a long way toward competing in digital markets.

“Now platforms can differentiate between horses when it is almost impossible to put competitive pressure on them,” he said. “If we take those control tools, they are not going to defend their goalkeeping position, the wonderful new products will be able to have a fair shock.”

Tech groups have criticized the proposals as a threat to innovation and consumer choice. On Friday, the Computer Industry Association asked the heads of the Judiciary Committee to hear the bills before moving them forward. The group says the proposals represent the biggest change in competition policy since antitrust laws were passed in the late 19th century, targeting specific companies and freeing others.

The merger-targeted bill will make it much more difficult for technology companies to obtain antitrust approval for transactions. It would consider the acquisitions illegal as long as the companies could not show that the deal did not threaten competition. This is a significant change in the current law, which puts a burden on the government to prove that the deal is anti-competitive. According to the proposal, the burden was to be shifted to the companies to allow the government to win the case in court.

The proposal to ban some enterprises is addressed to one of the main complaints of large technology companies. That their business models create inherent inconsistencies by running huge markets on which other companies depend to reach consumers while competing with some companies for their own offerings.

Sicily has proposed legislation that would discriminate against technology platforms, preventing them from putting competitors’ products and services at a disadvantage. It also prevents them from denying competitors access to their platform.

One of the provisions of the Sicilian bill seems to be aimed at Apple և Google’s mobile operating systems. It prevents platforms from making it difficult or impossible for users to uninstall pre-installed software or change the default settings that direct users to their products.





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