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"Predatory Monopoly": Congress's strong recommendations against technology giants

For about a year and a half, the actions of Apple, Google, Facebook and Amazon have been investigated by Congress.

Now, with the publication of a scathing government report signed only by Democratic representatives, experts say the administration is "preparing to disband," but the identity of the winner of the election will affect their future.

"In any scenario there will be a war of Gog and Magog"

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• United States

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• Google

• Facebook

• Amazon

Mikey Levy

Saturday, October 10, 2020, 10 p.m.

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In the video: Apple, Google, Amazon and Facebook were questioned at the US Congress about harming competition (Photo: Reuters, Editing: Nir Chen)

It was the year the four tech giants: Google, Apple, Facebook and Amazon "grilled," as they call it in the United States.

At the end of a 16-month media investigation in which senior executives and former employees of the companies were questioned, in which they were asked the most difficult questions about their conduct - this week Congress submitted a scathing report with recommendations against companies suspected of eliminating market competition.

The investigation began as an open one, and was opened after the companies were on the intention of the Antitrust Authority.

One of the highlights of the investigation would last July, then invited the CEOs of the four companies testimony Virtual front of members of Congress. Now, two months later, published the report fateful age 449 pages, actually serves as a summary of the investigation in the House.

The report was composed and submitted by members of the Sub The Democratic Committee, with the Republican members not signing the report at all - which shows that there is agreement on the problem, but not through the solution they proposed in the report.In a conversation with Walla! NEWS, technology and legal experts detail the implications of the firm document .

Facebook CEO Zuckerberg on screen during congressional hearing (Photo: Reuters)

Dr. Tehila Schwartz-Altshuler, a law and technology expert from the Israel Democracy Institute, believes that the document summarizing the investigation in the House of Representatives was done in a professional manner. "The report itself is very relevant, and is well-distributed that it is important.

"He is very comprehensive and professional," she said. "The House Antitrust Subcommittee is also made up of Republicans and Democrats, and throughout the investigation they cooperated with each other, and they all went about it together," she added.

"But in the end the report is only signed by Democrats, and there are two Republican senators who have each issued a sort of minority opinion. In fact, there seems to be a consensus of Democrats and Republicans on the problem - but there is disagreement on the solutions. Came out close to the election and they claim: 'Why did you not talk enough about the anti-Republican bias that Facebook has, and why did you not also include Twitter in the report?'. , She added.

According to Dr. Schwartz-Altshuler, the report's conclusions were made in a firm and unusual manner towards the companies, which are accused of abusing their power. "The rhetoric of the report is very sharp.

I have not seen any government report, certainly not in the United States, coming from such an extreme place.

What they are saying: These four - America's most successful companies - are thugs who are abusing power, "she said.

More on Walla!

NEWS

Apple, Google, Amazon and Facebook under investigation in Congress: "Exploiting their power"

To the full article

CEOs of major corporations during the congressional hearing

"They are more angry with them than they were with the banks and oil barons. They have enormous power, they exploit it, they charge predatory payments (including a 30% commission in the Apple app store), they have discriminatory terms in contracts like Amazon and what it demands from market traders. "In fact, in Congress we mean that some contracts include stipulations that courts should not be approached but only for arbitration," said Dr. Schwartz-Altshuler.

Problem: Pollution of information sources.

Accusations: Google and Facebook

Dr. Tehila Schwartz Altshuler

Dr. Schwartz-Altshuler explains that the report deals with two markets: the advertising market and the data market. In this context, he is actually trying to ban the tying and mutual promotion as Amazon enjoys it when it sells its products in the store, or Google promotes its own apps in the Android operating system and more. "They also try to say that Google and Facebook have caused a great deal of damage to trusted and quality information sources." .

She detailed the report's findings regarding the databases controlled by the technology giants, and how access to these data brings with it tremendous power that can be negative.

"We further noted that they are to blame for the fact that the digital economy has become such that data is worth more when mixed with more data. Anyone who has control over a lot of data becomes powerful. It could be real estate, search engines or insurance.

In fact, what the four companies have created is that in every economic market, there is a versatile and attractive market.

This market is about buying and selling data.

They are basically talking about the need to prevent the establishment of data empires, "Altshuler-Schwartz explained.

The "New Deal" of the 21st Century

According to her, the report's recommendations and the purpose of their impact on the American economy should be compared with the historic "New Deal" of President A. Franklin Delano Roosevelt - a series of economic plans designed to rehabilitate the country's economy in the 1940s.

"They offer a 'new deal' to the technology market. Like the new 'deal' of the early 20th century, when they tried to dismantle the control that the giant companies that controlled the railways and also the goods had. In fact, they also controlled the infrastructure and what went on the trains, They have a lot of power for the people, "she explained.

"What Roosevelt did in the 1930s was to dismantle these monopolies, and not allow control over all kinds of segments of production. To reactivate competition law. This report, in fact, is the 'new deal' of the technology market. He says it should be written. "Re-compete the market, it must be assumed that every purchase of Facebook or a company, is contrary to competition until Facebook proves otherwise. They want to reverse it: to say that every purchase you make, it will have to prove otherwise. It is a very extreme step," she added.

"Excellent chance that the administration will dissolve the companies"

From the moment of the investigation, the biggest question arose: whether the US administration would dismantle the technology giants or restrict them in a way that would really open the market to competition.

To understand the problem, one has to take Amazon for example.

During the discussions, Amazon was accused of using an online store, it watched all the competitors, discovered potential, started marketing a similar product under its own brand, and thus eliminated the competitors.

Zvi Marom, chairman of the board of the Hi-Tech Association of the Manufacturers' Association, believes that "there is an excellent chance that the US administration will dissolve the companies."

You know who the customers are, what the costs are, and they know and understand the business.

It's one business taking over other businesses.

He knows how to destroy all other businesses, it is against the American mentality.

And they are becoming a completely predatory monopoly. "

But the United States is facing dramatic presidential elections, and the identity of the winning candidate could affect the future of the technology giant.

"At the moment will have to wait until after the election: If the Democrats win, it could be very significant. Obviously there would be Armageddon. Big companies do not surrender easily, and now they've responded to the statement and attacked him," says Dr. Altshuler Schwartz.

" Facebook has already denied the allegations against it, and Google has said that these are unfounded accusations and that all the recommendations will cause a lot of damage to consumers and the United States economy.

But the report is very extreme, and in an atmosphere of anti-membership.

The agreement between the representatives of the two parties could lead to extreme solutions being seen later.

We clearly see a significant trend change relative to technology companies.

"This story, which they saw as the pinnacle of American innovation, is over," she concluded.

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