Efforts toward Vertec companies from “self-priority” gained traction.

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Washington — Laws prohibiting Internet companies from supporting their products on their platforms have gained more support as they can pose a potential threat to the business model of tech giants like Amazon.com. I’m getting it. Ltd

And apple Ltd

A bipartisan Senate law, due out Thursday, prohibits dominant platforms from supporting their own products and services. This is a practice known as self-priority. It also prohibits these dominant platforms from discriminating against business users in ways that would seriously harm competition.

In particular, the bill prohibits a set of practices that are harmful to businesses and consumers, such as requiring businesses to purchase goods and services on predominant platforms in exchange for priority placement. Abusing corporate data to compete. Bias search results in favor of dominant companies. And it unfairly prevents other business products from interoperating with the dominant platform.

The House Judiciary Committee passed a similar bill earlier this year, but in some respects the Senate bill will be a bit strict.

The Senate bill is sponsored by Senator Amy Klobuchar (Democratic Party of Minnesota), chairman of the Senate Antitrust Law Subcommittee, and Chuck Grassley, Iowa, the Supreme Republican of the Judiciary Committee.

In an interview, Klobuchar said efforts to curb tech giants were boosted by recent Facebook exposures. Ltd

A whistleblower disclosed in the Wall Street Journal’s “Facebook File” series.

Apple store in New York earlier this year.


Photo:

Jeenah Moon / Bloomberg News

“It’s a catalyst for action,” she said. “We can blame people for this notion that we should continue to agree with the technical mantra of’trust us, just trust us’. “

The bill is also backed by Senator Richard Durbin of the Justice Commission (Democratic Party, Illinois) and former Republican Chairman Lindsey Graham of South Carolina.

Industry opposition is likely to be significant.

The bill could affect many major technology companies, including the searches that Amazon.com and Alphabet provide to users. Of a corporation

Google offers a number of products and services that compete with other businesses.

Companies and their supporters generally claim that they operate in highly competitive and dynamic markets and do not unfairly use market power to thwart competition.

They also oppose a widespread antitrust bill in the House of Representatives by claiming that consumers can upset their business in ways they don’t want. They argue that widespread change can also undermine US technological leadership in the world.

For example, Apple previously stated that the House version allows users to download apps to the iPhone without using the App Store. The company says it harms customers by threatening privacy and parental controls and potentially exposing user data to ransomware attacks.

The House version was approved by the Commission in June as part of a package of extensive antitrust bills that could rebuild the online environment. However, due to the intense lobbying of the industry, the consideration of residential floors has been delayed since then.

Write to John D. McKinnon ([email protected])

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Efforts toward Vertec companies from “self-priority” gained traction

Source link Efforts toward Vertec companies from “self-priority” gained traction

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