The new chairman of the U.S Senate Judiciary antitrust Subcommittee, Democratic Sen. Amy Klobuchar is reportedly going to present a new regulatory bill that will drastically limit the power of tech giants: Apple, Google, Facebook, and Amazon. Publisher, Protocol explains that the “Competition and Antirust Law Enforcement Reform Act of 2021” will change the country’s anti-trust laws by giving more funds to investigating agencies and more importantly by increasing their penalty power to fine violators up to 15% of their U.S revenues.
“With a new administration, new leadership at the antitrust agencies and Democratic majorities in the Senate and the House, we’re well-positioned to make competition policy a priority for the first time in decades,” Klobuchar said during a tech conference last month.
Under new legislation by U.S Senate Judiciary antitrust Subcommittee, Apple antitrust investigation might lead to a massive fine of up to 15% of U.S revenues
To reform anti-competitive practices and policies of the four big tech giants of Silicon Valley, chairman Klobuchar’s new bill gives power and resources to the Department of Justice (DOJ) and the Federal Trade Commission (FTC). Protocol details that,
“It would also grant government regulators — namely, the Department of Justice and Federal Trade Commission — new powers and resources to penalize companies acting anti-competitively. It would dole out $484.5 million to DOJ’s antitrust division and and $651 million to the FTC. Right now, the agencies are hobbled and limited in how much damage they can do when they find a business is abusing their power. But Klobuchar’s legislation would give them significant penalty power, allowing them to bring penalties amounting to up to 15% of the violator’s total U.S. revenues or 30% of their U.S. revenues in the affected markets.”
It is stated that if passed, the new legislation would contain the power of tech giants (Apple, Facebook, Google, and Amazon) to make the tech industry beneficial for small developers by safeguarding them from anti-competitive practices and policies.
The legislation would make it harder for powerful firms with substantial market power to acquire smaller companies and forbid mergers that present an “appreciable risk of harming competition.” It would force companies like Facebook and Google to prove to government regulators that their mergers would not disrupt the marketplace or increase market concentration.
Along with other tech giants, Apple antitrust investigation began in 2020 in the United States. The regulator reviewed Apple’s App Store 30% commission rate. Several developers have complained that the company’s 30% share cut has a toll on the smaller developers and that it is implemented arbitrarily, using the leaked email correspondence between Apple and Azamon closing deal to bring Amazon Prime to on its platform. Having said that, the Cupertino tech giant recently, introduced a new program for small developers which has reduced the App Store commission rate to 15% from 30%.
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