By GREGORY ZELLER //
Suggesting they could “fracture the technology industry” – with especially harmful effects on technology-driven Long Island socioeconomics – the Long Island Association is speaking out against a raft of proposed antitrust laws floating through the U.S. Congress.
Earlier this summer, a federal judge tossed out state and federal competition cases against Facebook, ruling that the Federal Trade Commission and its partner plaintiffs failed to prove that the social media giant had engaged in unlawful monopolization. The dismissal has reenergized calls for revisions of national monopoly laws, which were created more than 100 years ago as a check against runaway industries like Big Oil – and have since outlived their usefulness, according to opponents.
Technology giants like Facebook, Amazon and Google – which come ever-so-close to monopolizing e-commerce, social media and online-search protocols – have skirted those antiquated laws, according to critics, who are pressuring lawmakers to do something about it.
To that end, President Joe Biden issued a sweeping executive order last month packing 72 initiatives by more than a dozen federal agencies aiming to spur competition in numerous industries. Some have applauded the measure; others cite an undeclared “war on Big Tech.”
Congress, meanwhile, has lustily debated to need to change federal monopoly laws. In June, the U.S. House of Representatives Judiciary Committee approved six bills aiming to rein in the market power of large tech companies; the U.S. Senate, while agreeing that antitrust laws should be enhanced, is taking a less-is-more approach.
Matt Cohen: A matter of antitrust.
Opponents of Biden’s broad executive order and the Judiciary Committee’s intense reforms suggest the proposed laws are too radical – they could kill disruptive innovation in highly competitive marketplaces, they warn, and significantly damage small business along the way.
Count the Long Island Association among the opposition. This week, LIA President and CEO Matt Cohen dispatched a strongly worded letter to U.S. Senate Majority Leader Charles Schumer (D-NY); U.S. Rep Jerrold Nadler (D-NY 10), chairman of the House Judiciary Committee; and several members of New York’s Congressional delegation expressing “concern” about the proposed antitrust laws, noting they could “fracture the technology industry; the same industry that helped keep small businesses afloat during the pandemic.”
“During the pandemic, Long Island small businesses relied on technology to keep their businesses going,” Cohen told Innovate Long Island. “Many adapted new platforms quickly to allow them to reach their customers.
“While the intention in Washington to create competition in the marketplace is a good one, lawmakers should carefully examine the impact these laws may have on small businesses and technology companies,” he added.
One proposed law in particular – the Platform Competition and Opportunity Act, sponsored by Brooklyn/Queens Congressman Hakeem Jeffries (D-NY 8) – “threatens our most innovative entrepreneurs and the ability of Long Island’s startup community to attract venture funding,” according to Cohen’s Aug. 6 letter.
Another bill – the State Antitrust Enforcement Venue Act, introduced by Colorado Republican Ken Buck – “could disrupt the civil justice system by giving state attorneys general a ‘home field advantage’ in antitrust legislation,” Cohen wrote.
The letter notes that the LIA “understand(s) the need for robust competition in the marketplace” and encourages further legislative dialogue about ways to “improve upon that competition.”
But legislation that “abandons the free-market principles that have helped lead to a prosperous New York business community” are not the best means to that end, Cohen told the lawmakers.
A better plan, he said Thursday, would be well-considered measures that limit the ability of Big Tech to monopolize industries without threatening the broader innovation economy on Long Island and beyond.
“We want to cultivate our technology sector to create good-paying jobs,” Cohen added.
