According to a statement by US Senators Amy Klobuchar (D) and Chuck Grassley (R), the proposed AICOA Act is a bipartisan attempt to promote fair competition on the internet by implementing new rules to prevent the largest tech companies from “abusing their market power to harm competition, online businesses, and consumers.” The American Innovation and Choice Online Act (AICOA) would apply to the largest online platforms, which the bill defines as a “website, online or mobile application, operating system, digital assistant, or online service” that enables a user to generate or interact with content on the platform, facilitates e-commerce among consumers or third-party businesses, or enables user searches that display a large volume of information. If enacted, AICOA would give federal antitrust agencies the authority to issue civil penalties and injunctions against covered platforms, which at this point would be those with at least 50 million monthly active users (or 100,000 business users); annual market capitalization or US net sales exceeding $550 billion; and which serve as a “critical trading partner” for its business users.
Supporters of AICOA argue that it would address and mitigate many long-held concerns about big tech firms engaging in allegedly anticompetitive practices online. Klobuchar said the proposed law’s provisions will “ensure small businesses and entrepreneurs still have the opportunity to succeed in the digital marketplace.” Grassley stated, “Big Tech needs to be held accountable if they behave in a discriminatory manner.” Other advocates argue that the proposed law would help level the playing field for small businesses and entrepreneurs. In addition, supporters believe that if passed, the bill would lead to a better customer experience with lower prices, more options, and better product offerings.
Industry groups and others opposed to this legislation argue that the bill is vague, overly broad, and will hurt consumers. In addition, critics argue that the bill would ultimately harm big tech companies, consumers, and overall competition online. Here is an opinion piece we found of interest relating to the efforts for Big Tech antitrust reform.
Calling for Antitrust Reform
In an opinion piece, “Calling for Antitrust Reform” for the Mozilla blog, Urmika Devi Shah, who was until last year co-acting general counsel and vice president, Global Product, Privacy, & Policy at Mozilla, argued that a fair playing field is critical to ensure that Mozilla and other independent companies are able to continue acting as a counterweight to big tech and shape the future of the internet to be more private and more secure. For this reason, she emphasized that updated competition laws are essential for the internet to be private, secure, interoperable, open, accessible, transparent, and a balance between commercial profit and public benefit. According to Shah, this is Mozilla’s vision for the internet. This is why Mozilla supports AICOA, which was drafted to create a level playing field for smaller, independent software companies to compete. In addition, Mozilla believes that AICOA will facilitate innovation and consumer choice by ensuring that big tech companies cannot give preference to their own products and services over the rich diversity of competing options. The lawyer maintains that Mozilla and many other independent companies are not able to compete effectively without this antitrust law.
According to Shah, Mozilla understands that the intent of AICOA is to regulate only gatekeeper companies and their controlled products; it is not intended to regulate or affect the agreements or product offerings of unregulated independent companies, such as Mozilla, which partner with gatekeepers for critical services. Also, according to Shah, Mozilla believes that enabling a level playing field for independent options is good for people’s online experiences, good for innovation and the economy, and ultimately good for a healthy, open internet. Read the full article on Mozilla.
Disclosure: Fatty Fish is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
The Fatty Fish Editorial Team includes a diverse group of industry analysts, researchers, and advisors who spend most of their days diving into the most important topics impacting the future of the technology sector. Our team focuses on the potential impact of tech-related IP policy, legislation, regulation, and litigation, along with critical global and geostrategic trends — and delivers content that makes it easier for journalists, lobbyists, and policy makers to understand these issues.
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