"WASHINGTON -- Advocacy groups bankrolled by big technology companies have poured at least $36.4 million into TV and internet ads opposing antitrust legislation that would bar dominant tech platforms from favoring their own products and services, according to a Wall Street Journal analysis.
By comparison, groups supporting the antitrust legislation have spent about $193,000, according to a Journal analysis of data collected by AdImpact, an ad-tracking service.
Much of the tech industry spending -- $13.7 million, or almost 40% -- has come since May 1, ahead of a possible floor vote this summer on the bill, which has bipartisan support.
The spending marks one of the biggest ad campaigns by the powerful tech industry in recent years and reflects its fear of the disruptive potential of tougher antitrust laws.
"This is without question one of the most significant campaigns the association has embarked on in recent years, because it's one of the most radical policy proposals to regulate a leading sector of the U.S. economy," said Matt Schruers, president of the Computer and Communications Industry Association, which has spent more than $23 million, the most of any group.
CCIA didn't disclose which companies provided funding for its ad campaign, saying only that "the association is funding the campaign." CCIA lists Alphabet Inc.'s Google, Amazon.com Inc., Apple Inc. and Meta Platforms Inc.'s Facebook among its members. CCIA's ads have included mentions of Amazon as well as Google and "your phone."
The bill targets dominant tech platforms, including Amazon's e-commerce site, Google's search engine, Apple's App Store and Facebook. Those companies have been working for months to stop or alter the bill, deploying teams of lobbyists and top executives to Washington. The $36.4 million spent by groups opposing the legislation dates back to Jan. 1, 2021.
Google's voluntary disclosure of its memberships for 2021 includes CCIA. Amazon also disclosed it made payments of $10,000 or more to CCIA in 2021.
Many of the ads are running in lawmakers' home states and districts. They aim to convince voters that easing antitrust standards would contribute to inflation, weaken America's hand versus China or hurt consumers and small businesses by disrupting popular online services such as Amazon Prime or Google Maps.
Sponsors led by Sens. Amy Klobuchar (D., Minn.) and Chuck Grassley (R., Iowa) held a press conference Wednesday to push back on the campaign, saying it is distorting the bill's impacts. "We're confronted with these big tech companies spending tens of millions of dollars on ads and also on front groups to spread falsehoods about our bill," Mr. Grassley said. "Obviously they want to protect the status quo, which allows them to expand their influence."
Ms. Klobuchar insisted the bill has the necessary votes to succeed on the Senate floor. "We have momentum despite all the money being spent against us," she said.
The bill passed a Senate committee this year on a bipartisan basis, although some supporters said at the time that they wanted changes. It"is specifically designed to target a small number of specific companies, most of which are headquartered in my home state," Sen. Dianne Feinstein (D., Calif.) said at the time.
Supporters, including some smaller technology companies, contend the platforms' dominant position gives them unchecked power to influence the fate of other businesses. They say restricting the platforms' conduct would carry significant benefits. The bill was endorsed by the Biden administration's Justice Department." [1]
1. U.S. News: Tech Firms Battle Against Antitrust Bill
McKinnon, John D; Ryan, Tracy; Day, Chad.
Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 10 June 2022: A.2.