New Antitrust Legislation Targeting Big Tech

A surge of antitrust bills aimed at regulating large technology companies is anticipated, and another proposal has recently emerged. Senator Josh Hawley (R-MO) unveiled a new bill this week designed to significantly curb the influence of Big Tech by proactively preventing mergers and acquisitions.

Key Provisions of the “Trust-Busting for the Twenty-First Century Act”

The “Trust-Busting for the Twenty-First Century Act” proposes a ban on acquisitions made by companies exceeding a market capitalization of $100 billion, encompassing both horizontal and vertical mergers. Furthermore, the bill outlines measures to substantially increase the financial penalties for companies found to be engaging in anti-competitive practices.

Any firm losing an antitrust lawsuit would be required to relinquish profits generated through the challenged business activities.

Reforming Existing Antitrust Laws

At the heart of Hawley’s legislative effort lies the intention to streamline antitrust enforcement. This would be achieved by amending the Sherman Act, which originally outlawed monopolies, and the Clayton Act, which broadened the definition of illegal anti-competitive conduct.

The goal is to simplify the process for the FTC and other regulatory bodies to determine if a company’s actions are anti-competitive – a frequent point of contention given the perceived inadequacy of current antitrust regulations in addressing the evolving tech landscape.

Bipartisan Interest in Antitrust Reform

While the bill’s passage in a Democratic-controlled Senate is considered unlikely, its introduction is noteworthy. Senator Amy Klobuchar (D-MN), chair of the Senate’s antitrust subcommittee, previously proposed legislation earlier this year that would also establish obstacles for dominant companies known for acquiring competitors.

Klobuchar’s proposals for limiting Big Tech’s power similarly center on revising the antitrust laws that have governed U.S. commerce for over a century.

Political Context and Overlap with Previous Critiques

The Republican bill shares some common ground with Democratic proposals, yet it also echoes familiar themes from the previous administration’s critical stance towards Big Tech. Senator Hawley levels criticism at “woke mega-corporations” in Silicon Valley, alleging excessive control over the information and products accessible to American consumers.

Although Democrats may not subscribe to this specific critique, Hawley’s bill underscores that antitrust reform targeting Big Tech represents a potential area of bipartisan consensus, despite differing motivations.

Further Legislative Efforts Expected

Hawley’s bill represents the latest development, but is not expected to be the last. Representative David Cicilline (D-RI), a leading figure in House tech antitrust initiatives, has announced plans to introduce a series of focused antitrust reform bills, rather than a single comprehensive piece of legislation.

These more targeted bills, designed to be more resistant to lobbying efforts, are anticipated to be released in May.

• Source: https://www.hawley.senate.gov/sites/default/files/2021-04/The%20Trust-Busting%20for%20the%20Twenty-First%20Century%20Act.pdf