Klobuchar Eyes Combining Big Tech Self-Preferencing, Media Revenue Collective Bargaining Bills
Senate Antitrust Subcommittee Chairwoman Amy Klobuchar, D-Minn., said Monday she hopes to “somehow combine” the American Innovation and Choice Online Act (HR-3816/S-2992), the Journalism Competition and Preservation Act (HR-1735/S-673) and other Big Tech-focused bills “and get a vote on the Senate floor” on the package this year. Klobuchar and other lawmakers who support HR-1735/S-673 encouraged NAB members to press members of Congress to back a combined package, during a Monday event. NAB sees HR-1735/S-673 as one of its top 2022 priorities (see 2202110068), as members plan to meet with lawmakers Tuesday.
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“There’s support out there” for bills like S-2992, since Senate Judiciary cleared that measure 16-6 in January, but “we’ve got to get the floor time” to get it through the full chamber, Klobuchar told reporters. S-2992 would ban Big Tech platforms from self-preferencing products (see 2201140049). She also referenced Judiciary’s 21-1 vote to advance the Open App Markets Act (S-2710), which would open up app store competition for Apple and Google (see 2202030079). “We are at a time of paralyzed action when it comes to antitrust” and the U.S. has thus far “done nothing” to put up any “guardrails” to rein in major tech companies, Klobuchar said during the event.
“We’re working hand in hand” with HR-3816 lead sponsors House Antitrust Subcommittee Chairman David Cicilline, D-R.I., and ranking member Ken Buck, R-Colo., Klobuchar told reporters. “I don’t see that as a problem” because “we’ve been able to work out” differences between S-1735 and an earlier House-passed version of HR-3816. “We changed” language in the measure and House Judiciary leaders intend to “adopt those changes and we’ll go from there,” she said. “We’re facing such a David and Goliath situation” with major tech companies “that we can’t really afford to have differences among” the bill’s sponsors.
“We need to get a [Senate Judiciary] vote on” S-673, which would allow news publishers to negotiate revenue sharing with online platforms, before work can begin on combining the antitrust measures, Klobuchar told reporters. “The hope would be to have a markup soon and go from there,” but there’s no timeline for doing that. She noted during a February Senate Antitrust hearing on S-673 she’s working with House Antitrust members to improve the measure before a markup given some lawmakers’ misgivings (see 2202020068).
House Communications Subcommittee Vice Chair Doris Matsui, D-Calif., also declared strong support for HR-1735 during the NAB event. The measure “can help swing the pendulum back toward” local broadcasters amid what she sees as a major “market imbalance” that Congress “can and should act” to address. It’s “clear the deck is stacked against” broadcasters due to the current ad revenue situation and “asymmetrical” regulations affecting only that part of the media industry, said Matsui, an HR-1735 co-sponsor. “Policymakers should be working hard to keep competition fair” and ensure that media regulations “don’t unfairly advantage or hinder some industries.”
Matsui noted support for the Local Journalism Sustainability Act (HR-3940/S-2434) and hailed the shift to ATSC 3.0 as a “seamless combination of broadcast TV and the internet” that will be a “powerful tool” for public safety communications. HR-3940/S-2434 would provide up to $5,000 in tax credits for local businesses that buy radio, TV and newspaper advertisements and up to $25,000 for local news organizations to hire journalists. Language from the measure was included (see 2111190042) in the House-passed version of the scuttled Build Back Better Act (HR-5376).
Matsui and House Appropriations Financial Services Subcommittee ranking member Steve Womack, R-Ark., cited their strong support for the Local Radio Freedom Act(House Concurrent Resolution 33/S-Con-Res 9),which opposes any new performance royalty on broadcast radio. Broadcasters and the recording industry historically “enjoyed a mutually beneficial relationship” and any departure from the current status quo “could have damaging consequences,” Matsui said. “Any proposed changes to this relationship demand heavy congressional scrutiny” to prevent “new burdens” on broadcasters. Womack urged NAB members to talk to members of Congress and urge them to “make this a priority.” Sen. Roy Blunt, R-Mo., touted his Low Power Protection Act (S-3405), which would require the FCC to open a new filing window during which qualifying low-power TV stations could apply for and receive Class A status (see 2112210058).
Legislation to enforce a nondiscrimination requirement against tech platforms could be the most significant bill for addressing dominant digital platforms (see 2202090066), said Public Knowledge Competition Policy Director Charlotte Slaiman during a Monday State of the Net event (see 2202280060). It's clear that even if DOJ and the FTC are successful in their antitrust cases against Big Tech, legislation is needed to update the law, she said.
It’s a myth there’s no competition or disruption for Big Tech, NetChoice Policy Counsel Jennifer Huddleston told State of the Net: The rise of TikTok and continued devaluation of Meta is strong evidence. The focus of antitrust law’s consumer welfare standard should continue to be consumers, said Aurelien Portuese, the Information Technology and Innovation Foundation's director-antitrust and innovation policy. Consumer Reports Senior Researcher Sumit Sharma said the consumer welfare standard needs to account for more than just price, like quality-adjusted price that factors in privacy and other consumer benefits.