Tech Giants Called to Account

"Today, it is effectively impossible to use the Internet without using, in one way or another, the services of these four companies."

"[Some of the findings of the anti-trust sub-committee to date throughout a year-long examination of the tech giants is] disturbing."

Jerry Nadler, committee chair, House Judiciary committee anti-trust sub-committee

Amazon CEO Jeff Bezos testifies Wednesday via video before the House Judiciary antitrust subcommittee. The hearing also featured the heads of Apple, Facebook and Google.  Mandel Ngan/POOL/AFP via Getty Images

"The most powerful moments [of the committee's questioning] came from well-researched analysis of the documentary evidence supplied to the committee and almost always involved allegations of anti-competitive behaviour."

"This cut across all four companies with allegations of efforts to limit competition or take unfair advantage of their powerful positions. [This line of inquiry] will have legs [and become] a focal point of potential action."

"The EU has been heavily focused on content and data protection harms -- misuse of personal information, hate speech, misinformation [and] I expect that to continue. But ...the anti-trust issues have a more direct link to the U.S. economy since it impacts other U.S. companies and U.S. consumers."

"I think Canada will struggle to go it alone on these issues since we're a relatively small market with limited enforcement tools. I expect to see some legislative or regulatory reforms, but also efforts to align [with] countries with similar concerns."

Michael Geist, law professor, University of Ottawa; Canada Research Chair in internet and e-commerce law

"[The] blowout [financial results this week could make it less likely -- not more -- that a potentially harmful case will be mounted against the business models of the tech giants amid the continuing pandemic]."

"I mean, we need positive news of companies making money because who else is going to employ people or keep the economy afloat?"

"We have not heard what is fundamentally wrong with any of these companies other than the fact that they are big and large numbers of people use their products."

"As much as there was griping during the sessions ... this was also a forum for the CEOs to make the case about what and how they are contributing to [the] American economy. And I saw those points got some good ink."

Kaan Yigit, president, Solutions Research Group, Toronto consultancy on digital technology

On Wednesday, elected representatives put questions to Facebook CEO Mark Zuckerberg, Google head Sundar Pichai, Amazon's founder Jeff Bezos, and Apple Inc. chief Tim Cook, through video linkage. Over five hours went by while the tech titans on several occasions were being accused by the committee of unfairly wielding market power to squeeze out competition, along with acquisitions, while censoring unpopular voices. The firms were queried over profiting from the pandemic as a result of demand rising exponentially for their products and services.

Smartphones, online shopping and social media communications have soared in popularity, resulting from populations confined to their homes or remaining close to them. Who, us? Not likely, they avowed, each and every one. Then, a day later, earnings data were released demonstrating most of the firms' stock prices surging upward, where Apple shares went so high the iPhone producer temporarily was recognized as the most valuable publicly-listed company in the world, at $1.76 trillion U.S.; more valuable than oil giant Saudi Aramco.

One Judiciary Committee member, U.S. Representative Jim Sensenbrenner gave warning that should the dominant providers of internet search, online shopping, smartphones and social media be dismantled, the disruptive effect would be huge, while at the same time having little positive after-effect. That despite their obvious market power, firms such as Google and Amazon might not suffer the decline posited, giving as an example the 1980s breakup of AT&T in a bid to stimulate competition in the telecom business which resulted in junior offshoots becoming a group of dominant players following mergers and acquisitions.

An anti-trust lawsuit against Google over its advertising business, however, is being prepared by the U.S. Department of Justice and state attorneys general. Across Europe, regulators and competition authorities, Australia and the United Kingdom, have all been busy probing segments of these same giant, dominant tech firms. Australia has taken action with the release of a draft code of conduct set to be written into law later in the year, requiring Google and Facebook to begin remunerating news companies whose content their platforms feature.

"It's about ensuring that we have increased competition, increased consumer protection, and a sustainable media landscape", explained Australian Treasurer Josh Frydenberg, from Melbourne. In Canada, the federal competition watchdog has an active interest in the digital economy and its direction. During Wednesday's questioning the tech CEOs were on the defensive when they were targeted on their far-reaching grasp, rejecting suggestions they are using their market power to acquire huge profits while taking command of new lines of business, squeezing out potential competitors.

Tim Cook, CEO, Apple. David Paul Morris | Bloomberg | Getty Images

Rebut their accusers as they may the reality is that Amazon which came to life 26 years earlier as a book seller on the internet has grown over the years into the largest online retailer in the world, which posted its largest-ever quarterly profit a day later, then announced a $10 billion project in building over 3,000 satellites to enable high-speed broadband service. Wednesday's hearing pointed out that Jeff Bezos who runs Amazon has become the wealthiest individual in the world, surpassing Microsoft Corp. co-founder Bill Gates.

Amazon has branched out from its retail base into a new direction; logistics, with services, subscription entertainment services and "smart" voice-activated home technology. So as some would have it, there is no stopping this technological juggernaut, all the more so in a new world of social distancing which, even if and when a vaccine is discovered finally and distributed, inoculating the world against SARS-CoV-2, the certainty that other, and perhaps more lethal viruses are on the horizon, will ensure that the world remains distanced, able to communicate through the technology enabling the internet.