Sources: a bipartisan bill that would ban Big Tech companies from favoring their products faces resistance from some Senate Democrats worried about the midterms

Politico 2022-05-27

Context & Ripple Effects

The proposal originated with a bipartisan Senate effort to prohibit platform self-preferencing in 2021. The newly reported Democratic resistance turns an ostensibly bipartisan competition measure into a timing problem ahead of the midterms, a pressure reflected in later efforts to advance the AICO Act before the election.

First-order effects

Senate Democrats worried about the midterms become an immediate obstacle to bringing the Big Tech self-preferencing ban forward, weakening the bill's near-term path despite bipartisan sponsorship.
Big Tech companies avoid an immediate statutory constraint on favoring their own products while Senate support is unsettled.

Second-order effects

Democratic sponsors and Republican counterparts must spend political capital resolving election-year concerns rather than relying on the bill's bipartisan framing.
The push to pass the AICO Act before the midterms becomes more urgent because delay narrows the available legislative window.

Third-order effects

If election-cycle resistance repeatedly stalls competition bills, bipartisan agreement on platform conduct will not by itself translate into durable Senate action.
Platform-regulation agendas may increasingly hinge on party leaders' electoral priorities as much as on the underlying policy coalition.

The trend: US platform competition policy is moving from bipartisan bill-writing toward an election-sensitive test of whether cross-party support can overcome congressional timing constraints.

Discussion

@protectaxpayers @protectaxpayers on x
🚨 TPA Statement 🚨 Despite minor changes, Senator Klobuchar's American Innovation and Choice Online Act remains deeply flawed threatening American cybersecurity, national competitiveness, and consumer pocketbooks. Full statement: https://www.protectingtaxpayers.org/ ... https://tw…
@adamkovac Adam Kovacevich on x
Key takeaways from @SenAmyKlobuchar's revised AICOA tech antitrust bill: ▶️ Carves out telcos, banks, and credit cards ▶️ Removes TikTok from being included ▶️ Still bans Amazon Prime/Basics & content moderation ▶️ Lowers DOJ/FTC evidence standard 🧵: https://www.klobuchar.senate.…
@actonline @actonline on x
Small business owners deserve to have their privacy and security concerns addressed in the revised American Innovation and Choice Online Act. Read our why here: https://actonline.org/... https://twitter.com/...
@timsweeneyepic Tim Sweeney on x
Next, we'll see the Alliance to Protect Adorable Kittens (and advocate for digital monopolies). They will post pictures of adorable kittens (and advocate for digital monopolies). https://twitter.com/...
@timsweeneyepic Tim Sweeney on x
Fake taxpayer advocates checking in! https://twitter.com/...
@lutherlowe Luther Lowe on x
👏 updates to the @amyklobuchar/@ChuckGrassley bill add helpful clarity & make strong bill even stronger. 💪🏻 It's time for @chuckschumer to call a vote. This bipartisan effort to curb the most egregious forms of self dealing by Big Tech are long overdue. https://www.klobuchar.sena…
@lutherlowe Luther Lowe on x
Without missing a beat, Big Tech's most aggressive shills are already lying about what the legislation does (for example, claiming it's a win for TikTok). These people have no skin in the game and have no credibility. https://twitter.com/...
@karlbode Karl Bode on x
["We should be focused on items that will help consumers deal with rising costs," said one Senate aide who criticized the legislation as a “pet project” with little political payoff. “Nobody can quite figure out why it would be a priority."] it's me, a savvy senate aide who doesn…
@timsweeneyepic Tim Sweeney on x
Fake progressive organization checking in! https://twitter.com/...
@fightfortheftr @fightfortheftr on x
Some tech regulation bills are poorly drafted, overly broad, or just plain terrible, and would do more harm than good. But #AICOA and #OAMA are good bills! They would meaningfully crack down on the self-dealing and anti-competitive practices of the largest tech giants.
@sachalouise Sacha Haworth on x
🧵New language on @SenAmyKlobuchar's S2992 #AICO bill is strong. She clearly listened to her colleagues' concerns and took bipartisan input into account
@timsweeneyepic Tim Sweeney on x
Fake app developer advocacy group checking in! https://twitter.com/...
@evan_greer Evan Greer on x
Here @fightfortheftr we spend a lot of time fighting against well-intentioned-but-misguided legislation targeting Big Tech (stuff like the EARN IT Act). But @amyklobuchar's updated version of S. 2992 (#AICOA) is a solid bill that would do some meaningful good. We support it.
@neil_chilson @neil_chilson on x
@evan_greer ... The updates don't deal with the concerns re: weaponizing the law against content moderation. The updates *do* include favors to the telecom & financial industries who are laughing that big tech might face economically unjustifiable restrictions they won't.
@timsweeneyepic Tim Sweeney on x
Fake free speech organization checking in! This one is interesting because it casts Apple and Google app distribution monopolies as positive for free speech and open internet. Somehow? https://twitter.com/...
@timsweeneyepic Tim Sweeney on x
The pro-monopoly trolls and astroturfers are out in droves today - fake developer advocates, fake taxpayer advocates, fake liberal advocates, fake conservative advocates, fake libertarian think tanks - hoping that a cacophony of bad ideas can overwhelm one good idea.
@timsweeneyepic Tim Sweeney on x
I wonder how the fake liberal groups Apple and Google fund to advocate for their monopolies feel about the fake conservative groups they also fund? Is it like having multiple mistresses in Game of Thrones or are more they, like, “Yay Team Fake! Let's Go!!!”
@netchoice @netchoice on x
Sen. Kennedy @SenJohnKennedy - stand up for American innovation and Louisiana by ending your support for Sen. Klobuchar's progressive antitrust crusade.
@progresschamber @progresschamber on x
Dems have serious concerns over @SenAmyKlobuchar's antitrust bill, including privacy, barriers to content moderation, and threats to consumer products. Instead of tackling those concerns, the latest draft of S. 2992 carves out big banks and telcos. https://subscriber.politicopro.…
@matthewstoller Matt Stoller on x
At the end of the day, most of the Dems will likely vote the right way on this bill, the committee votes were overwhelming. Alex Padilla and Dianne Feinstein won't, and there will be a few other bad votes. And Rs are super angry with big tech.
@adamkovac Adam Kovacevich on x
Democrats have been big champions of net neutrality. But Klobuchar sold out on NN likely in an effort to win R votes. She explicitly adds telcos as out of scope of the bill: https://twitter.com/...
@adamkovac Adam Kovacevich on x
So to sum up, Klobuchar's much-awaited response to the criticism of her bill is: ✅ Political favors for telcos, banks, and TikTok ✅ Make it *easier* to bring suit against Big Tech 🚫 Do literally *nothing* to address Dem criticism over content moderation or consumer impact
@fightfortheftr @fightfortheftr on x
That's why industry lobbyists are going into overdrive and flooding the hill with nonsense. These bills are the thing they fear the most: thoughtful, bipartisan legislation that attacks the root of the problem and forces them to compete on a level playing field.
@evan_greer Evan Greer on x
Now that the near-final version is out and headed for an imminent floor vote, you are going to see a massive increase in industry-funded FUD about #AICOA (and #OAMA, S. 2710, another positive Big Tech #antitrust bill that we support.) Don't fall for industry lies.
@sachalouise Sacha Haworth on x
Overall, S.2992 was a good bill before — it is a better bill today. This revised version, combined with poll after poll showing overwhelming support for #antitrust reform — especially in Senate battleground states — make this a political no-brainer.
@chrisj_lewis Christopher J. Lewis on x
Big Tech is trying to pass off simple clarifications in the bill as nefarious exceptions to rile up those who haven't been paying attention. Don't listen to their misdirection 5/
@evan_greer Evan Greer on x
AICOA & OAMA aren't going to magically fix every single thing that's wrong with Big Tech. We desperately need privacy legislation, FTC enforcement & more. But these are GOOD BILLS! They will start to chip away at the monopoly power and abuses of Facebook, Amazon, etc. Pass them!
@rsi @rsi on x
AICOA is clearly designed to protect competitors rather than the competitive process and consumers. It is a step away from the consumer welfare standard" https://www.rstreet.org/...
@jowens510 Jeremy C. Owens on x
The real truth is that senators want to collect big checks from Big Tech for their midterm races ... https://twitter.com/...
@demandprogress @demandprogress on x
Polling shows 76% SUPPORT for AICO among random sample of voters in swing states including GA, NH, NV & AZ. Dems should be leaning into #antitrust reform if they want to improve election prospects, not giving their opponents another line of attack. https://twitter.com/... https:/…
@halsinger Hal Singer on x
This is pathetic. Weak-in-the-knee Dems are backing off an *extremely popular* bill over false claims that it would threaten the existence of Amazon Prime. https://www.politico.com/...
@matthewstoller Matt Stoller on x
Would be weird for Schumer to so brazenly lie about bringing a bill to the floor and then not do it, so I'm not sure what's going on. Then again, Schumer didn't say it overtly, he leaked it to Axios. https://twitter.com/...
@matthewstoller Matt Stoller on x
Looks like Schumer may have been lying about bringing the big tech antitrust bills to the floor, and he's going to hide behind vulnerable Dems like @SenatorHassan who are whining they might have to take a vote against a powerful interest groups. https://www.politico.com/...
@mpetricone Michael Petricone on x
Senators are right to be wary. New CTA research shows that voters are overwhelmingly focussed on inflation, and the majority would be less likely to vote for a policymaker who impedes access to tech services. https://subscriber.politicopro.com/ ...
@adamcancryn Adam Cancryn on x
@birnbaum_e Supporters of the yearslong tech antitrust effort say the political anxiety is a result of heavy lobbying from tech giants like Google and Amazon. Polling has shown broad support among voters for tightening oversight of Big Tech: https://www.politico.com/...
@tomhebertdc Tom Hebert on x
Ouch. The only reason AICOA would be a priority is to give @amyklobuchar a singular “bipartisan” accomplishment to run on in 2024. Republicans: why give Klobuchar a win before a red wave election? https://www.politico.com/... https://twitter.com/...
@johndavisson John Davisson on x
The idea that vulnerable senators would lose a single vote in November by bringing the antitrust hammer down on big tech is preposterous (part of why no one in this story was willing to attach their name to that argument). https://www.politico.com/...
@adamcancryn Adam Cancryn on x
@birnbaum_e On a Dem chiefs of staff call last week, top aides to MAGGIE HASSAN and MICHAEL BENNET were among those raising concerns about leadership's legislative strategy. The remarks prompted AMY KLOBUCHAR's chief to launch a defense of her antitrust bill https://www.politico.…
@reckless Nilay Patel on x
Gosh how might addressing monopolies help with rising consumer costs https://www.politico.com/... https://twitter.com/...
@zacharyleelee Zach Lilly on x
After months of waiting we have new bill language that is substantively the same. New provisions seem to be carveouts for competing industries. https://twitter.com/...
@sachalouise Sacha Haworth on x
political concerns about the antitrust bills are wholly off-base. poll after poll shows Americans of every political spectrum are united in their support for S.2992 #AICO, including 80% of senate battleground voters. this is a winning issue for Dems in the midterms. https://twitt…
@pathedger18 Patrick Hedger on x
Yeah it's like going after free services and discount brands in the middle of an inflation problem is a bad idea or something. https://twitter.com/...
@senatorshoshana @senatorshoshana on x
IDK ruining products that people like and providing lower costs seems super well timed with inflation!! https://twitter.com/...
@tomhebertdc Tom Hebert on x
Not quite the unified Democratic reaction that @amyklobuchar was hoping for. Please send a prayer for Klobuchar's staff today and hide all projectiles in her immediate proximity https://twitter.com/...
@birnbaum_e Emily Birnbaum on x
.@adamcancryn and I dove deep into the Democratic in-fighting over the bipartisan legislation to rein in the largest tech companies. Supporters of the bill say vulnerable Democrats are getting scared amid frenzied lobbying by the tech companies. https://www.politico.com/...
@lamiasdottir @lamiasdottir on x
Some underpaid intern spent weeks coming up with a platform for the Democrats to declare everything on it “too risky” for November https://twitter.com/...
@nealkwatra Neal Kwatra on x
Just an absolutely pathetic party that's neither serious nor ready for the fight we are all in. Yes, not going after Big Tech is what's gonna hurt your likely November collapse, brilliant political thinking. https://twitter.com/...
@adamcancryn Adam Cancryn on x
NEW: Senate Dems' bid to rein in Big Tech is roiling the caucus, with a growing faction worried the antitrust push will hurt their November political chances. Some question the policy. Others say it's a “pet project” not worth the effort. w @birnbaum_e: https://www.politico.com/.…

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