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A2   UP FRONT
                   Wednesday 12 June 2019
            Tech on trial: House mulls antitrust help for news industry




            Continued from Front                                                                                                Politicians  on  the  left  and
                                                                                                                                right  have  differing  gripes
            As  a  partial  solution,  Cicil-                                                                                   about  the  tech  giants.
            line  proposed  legislation                                                                                         Some complain of aggres-
            to establish an antitrust ex-                                                                                       sive conduct that squashes
            emption  that  would  allow                                                                                         competition.  Others  per-
            news  companies  to  band                                                                                           ceive  a  political  bias  or
            together  to  negotiate  rev-                                                                                       tolerance of extremist con-
            enue  rates  with  big  tech                                                                                        tent.  Still  others  are  upset
            platforms.  He  called  it  “a                                                                                      by the industry’s harvesting
            life  support  measure,  not                                                                                        of personal data.
            the  remedy  for  long-term                                                                                         Several  Democratic  presi-
            health”  of  the  news  busi-                                                                                       dential  candidates  think
            ness.                                                                                                               they  have  the  solution:
            The  senior  Republican  on                                                                                         breaking  up  the  compa-
            the  full  committee,  Rep.                                                                                         nies  on  antitrust  grounds.
            Doug  Collins  of  Georgia,                                                                                         Cicilline has called that “a
            said  he  backs  Cicilline’s                                                                                        last  resort,”  but  the  idea
            proposal.  Addressing  the                                                                                          has currency with both ma-
            broader  question  of  an-                                                                                          jor  political  parties,  includ-
            titrust,  however,  he  said,                                                                                       ing at the White House.
            “Big is not necessarily bad,”                                                                                       Trump noted the huge fines
            adding  that  lawmakers                                                                                             imposed by European reg-
            need to proceed cautious-                                                                                           ulators on the biggest tech
            ly.                                                                                                                 companies.
            The head of an association   Sally  Hubbard,  director  of  enforcement  strategy  at  the  Open  Markets  Institute,  and  Matt   “We are going to be look-
            that represents technology   Schruers,vice  president  of  Law  and  policy  with  the  Computer  and  Communications  Industry   ing at them differently,” he
            and  telecom  companies      Association, are sworn-in to testify before the House Judiciary Antitrust subcommittee hearing on   said  in  an  interview  Mon-
            said the government scruti-  ‘Online Platforms and Market Power’, on Capitol Hill in Washington, Tuesday, June 11, 2019.   day on CNBC.
                                                                                                              Associated Press
            ny of successful companies                                                                                          “We should be doing what
            is  appropriate.  However,  Before  the  internet,  “news   less  competition  among  cade  has  enjoyed  haloed  (the  Europeans)  are  do-
            an  antitrust  exemption  for  publishers  received  an  ex-  news outlets.”           status  and  a  light  touch  ing,” Trump said.
            the news industry wouldn’t  emption to deal with previ-   But  David  Chavern,  presi-  from federal regulators.    “Obviously,  there  is  some-
            solve  the  problem,  said  ous  competitors  like  radio   dent  of  the  News  Media  With  regulators  at  the  Jus-  thing  going  on  in  terms  of
            Matt  Schruer,  vice  presi-  and  TV  news  (and  they)   Alliance representing some  tice  Department  and  Fed-  monopoly.”
            dent of the Computer and  have not worked,” Schruer       2,000 news organizations of  eral Trade Commission ap-    The tech giants have most-
            Communications  Industry  said. “The results were few-    all  sizes  and  types,  called  parently  pursuing  antitrust  ly declined to comment on
            Association.                 er choices for readers and   an antitrust exemption “the  investigations of Facebook,  the antitrust investigations.
                                                                      lightest-touch  option  on  Google,  Apple  and  Ama-     Google has said that scru-
                                                                      the table.”                  zon,  and  several  state  at-  tiny  from  lawmakers  and
                                                                      “There’s  a  real  urgency  in  torneys  general  exploring  regulators  “often  improves
                                                                      the industry. We’re at crisis  bipartisan  action  of  their  our products and the poli-
                                                                      point now,” Chavern said.    own, the tech industry finds  cies  that  govern  them,”
                                                                      Stepping ahead of the criti-  itself  in  a  precarious  mo-  and  that  in  some  areas,
                                                                      cism,  Google’s  vice  presi-  ment  —  with  the  dreaded  such  as  data  protection,
                                                                      dent of news Richard Grin-   M-word  increasingly  used  laws need to be updated.
                                                                      gas said the company has  to describe their way of do-    Facebook executives have
                                                                      “worked  for  many  years  ing  business.  Cicilline  has  been  calling  broadly  for
                                                                      to  be  a  collaborative  and  flatly called them monopo-  regulation  while  explicitly
                                                                      supportive technology and  lies.                          rejecting the idea of break-
                                                                      advertising  partner  to  the  The  Justice  Department’s  ing up “a successful Ameri-
                                                                      news industry.”              antitrust chief suggested in  can company.” CEO Mark
                                                                      “Every   month,    Google  a speech Tuesday that he  Zuckerberg  has  called  for
                                                                      News  and  Google  Search  may take a broad view of  new  rules  in  four  areas:
                                                                      drive over 10 billion clicks to  harm  to  competition,  and  harmful  content,  election
                                                                      publishers’ websites, which  take  into  account  quality  integrity, privacy and data
                                                                      drive subscriptions and sig-  factors  such  as  the  threat  portability.
                                                                      nificant  ad  revenue,”  he  to privacy, not only wheth-  When  Democratic  presi-
                                                                      said  in  a  statement  Tues-  er  a  company’s  dominant  dential   contender   Sen.
                                                                      day.                         market  position  results  in  Elizabeth  Warren  tweeted
                                                                      In a Capitol steeped in par-  higher prices.              in April that tech giants like
                                                                      tisanship,  inflamed  by  spe-  “Price effects alone do not  Amazon should be broken
                                                                      cial  counsel  Robert  Muel-  provide  a  complete  pic-  up, Amazon tweeted back,
                                                                      ler’s report and Democrats’  ture  of  market  dynamics,  “Walmart is much larger.”
                                                                      intensifying probes of Presi-  especially in digital markets  And  Apple  has  countered
                                                                      dent  Donald  Trump,  Con-   in which the profit-maximiz-  a  legal  challenge  to  its
                                                                      gress’  new  investigation  of  ing  price  is  zero,”  Assistant  management  of  the  App
                                                                      tech  market  power  stands  Attorney  General  Makan  Store by saying it “will pre-
                                                                      out. Not only is it bipartisan,  Delrahim  said,  according  vail when the facts are pre-
                                                                      but it’s also the first such re-  to a transcript of his speech  sented  and  the  App  Store
                                                                      view by Congress of a sec-   in Tel Aviv, Israel, provided  is  not  a  monopoly  by  any
                                                                      tor that for more than a de-  by the department.          metric.”q
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