Lawmakers and regulators’ inability to control Big Tech in 2023
Federal and State Governments Struggle to Rein in Big Tech
In 2023, federal and state government officials faced a challenging battle as they tried to curb the power and growth of Big Tech companies. These companies, including Meta, Google, and Apple, dominate various sectors such as advertising, media, and public attention. Their cultural dominance led to bipartisan support for breaking them up and regulating their impact on teenage users. However, legislative and judicial obstacles hindered most attempts, making the year less successful than anticipated.
Efforts by Congress and the White House
President Joe Biden made a strong push in his 2023 State of the Union address, urging Congress to hold Big Tech accountable and prioritize the safety of teenagers on online platforms. He indirectly endorsed the Kids Online Safety Act, which aimed to compel social media companies to take measures against specific harms to minors, such as promoting suicide, substance abuse, sexual exploitation, and drug or alcohol use. Although the legislation progressed through the Senate committee, it struggled to secure a vote on the floor.
Senator Amy Klobuchar (D-MN) reintroduced the American Innovation and Choice Online Act in June, which sought to empower federal antitrust agencies to penalize “covered platforms” like Amazon and Google for unfairly favoring their own products. However, the bill failed to gain traction or receive consideration for committee markup.
State lawmakers also took action by passing their own laws to regulate social media companies. Utah, Arkansas, and California each implemented laws in 2023 that required age verification and additional security standards for underage users. However, these age verification laws were blocked in court due to allegations of First Amendment violations.
Several states also attempted to enforce age verification laws for accessing pornographic content. Although over half a dozen states embraced such laws in 2023, Texas’s law was blocked in court on First Amendment grounds.
The FTC and the DOJ
The Federal Trade Commission (FTC), led by Lina Khan, pursued lawsuits against Meta, Microsoft, and Amazon to prevent proposed mergers and prevent the alleged monopolies these companies were building.
Despite the FTC’s lawsuit, Meta successfully acquired the AI-fitness developer Within in February. Microsoft’s nearly $70 billion acquisition of Call of Duty developer Activision Blizzard was approved in October, despite resistance from the FTC and the United Kingdom. The FTC continues to have an ongoing lawsuit against Amazon regarding its treatment of sellers, with oral arguments expected in 2024.
In September, the Department of Justice (DOJ) went to court to argue that Google held an illegal monopoly through its agreements with mobile phone-makers and web browser developers to become the default search engine. The judge’s final decision is anticipated in late spring 2024.
How did the arguments made by Big Tech lobbyists, regarding potential burdens on social media platforms and infringement on free speech rights, affect the progress of the bill in Congress?
Gislation gained bipartisan support, it faced significant challenges in Congress. Big Tech lobbyists argued that the bill would impose undue burdens on social media platforms and infringe on free speech rights. As a result, the bill stalled in committee, and no progress was made in addressing the concerns raised by both sides.
Congress also attempted to pass a bill to regulate the monopolistic practices of Big Tech companies. The proposed legislation sought to prevent anti-competitive behavior and promote fair competition in the online marketplace. However, the bill faced fierce opposition from tech industry leaders, who argued that it would stifle innovation and hinder economic growth. Additionally, the bills faced legal obstacles, with critics arguing that they would be difficult to enforce and could potentially violate constitutional rights. As a result, federal regulation of Big Tech remained elusive.
State governments also struggled to rein in the power of Big Tech. Several states, including California, New York, and Texas, proposed their own legislation to regulate tech giants operating within their jurisdictions. However, these efforts were met with legal challenges from the tech companies themselves, who argued that state laws would create a patchwork regulatory framework and hinder interstate commerce. Courts sided with the tech companies, ruling that federal law preempted state regulation in this area. Consequently, state governments faced limited options in regulating the tech giants within their borders.
The judicial branch also played a significant role in hindering government efforts to rein in Big Tech. Antitrust lawsuits against major tech companies, such as Facebook and Google, faced legal hurdles as courts grappled with defining the boundaries of monopolistic behavior in the digital age. Additionally, courts were reluctant to break up these companies due to concerns over the potential disruption to the economy and the lack of established legal precedent in this area.
In conclusion, the year 2023 proved to be a challenging one for federal and state governments in their efforts to rein in the power and growth of Big Tech. Despite bipartisan support for regulation, legislative and judicial obstacles, along with fierce opposition from industry leaders, hindered most attempts. As Big Tech companies continue to dominate various sectors of the economy, finding a balance between innovation, free speech, and consumer protection remains a complex task for governments around the world. The struggle to rein in Big Tech is likely to continue in the years to come.
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