US investigation says tech companies may need breaking up to curb ‘monopoly power’

Jeff Bezos testifies during a House Judiciary Subcommittee hearing in Washington in July

“Although these firms have delivered clear benefits to society, the dominance of Amazon, Apple, Facebook, and Google has come at a price. These firms typically run the marketplace while also competing in it — a position that enables them to write one set of rules for others, while they play by another, or to engage in a form of their own private quasi regulation that is unaccountable to anyone but themselves.” 

The proposals would see the technology industry moving away from the freedoms of market competition toward a regulated industry structure like banking, rail or airlines. 

As of September 2020, the combined valuation of Apple, Amazon, Facebook and Google was more than $5 trillion. Shares in the companies dropped in late trading.

The subcommittee has been speaking to employees at these companies and rivals to work out whether they unfairly crushed competition or are simply good at what they do. Each of the company’s chief executives have testified in front of politicians as part of their inquiry.

An ongoing tussle about how best to break up the sprawling companies is understood to have caused delays as Republicans refused to sign off on the proposed measures led by Antitrust Subcommittee Chairman David Ciccilane, a Democrat. The power of Silicon Valley and so-called "Big Tech" has become a highly political issue with both parties seeking to rein the companies in. Republicans chastise platforms for allegedly censoring voices from the right while the Democrats have taken aim at some of the company’s stance on consumer privacy.

Simultaneously, the Justice Department and several states are investigating Google, the Federal Trade Commission is looking at Facebook’s purchase of Instagram and WhatsApp and both agencies are said to be looking into whether Amazon is abusing its position as a marketplace by disadvantaging sellers to tout its own brand products. The Justice Department is also looking into Apple’s App Store policies, which have been criticised for taking a 30pc cut from app developers.