New Klobuchar Bill Will Attempt To Curb Monopolies, Big Tech Power

Sen. Amy Klobuchar is set to introduce a new bill to curb corporate monopoly power, particularly aiming at Big Tech, The New York Times (NYT) reported.

The report said lawmakers are trying to erect new limitations on companies attempting to buy up smaller rivals, like when Facebook bought Instagram in 2012. That paved the way for the social media company to become one of the giants of the field for the last several years, eliminating competition.

In addition, the bill would set up roadblocks on buying up “maverick” companies presenting better offerings for customers before the buyout, in the way T-Mobile did before it was purchased by Sprint, NYT reported.

It would also give more funding to antitrust agencies, according to NYT.

These ideas are similar to those advanced last October in the House judiciary report led by Rep. David Cicilline of Rhode Island, although Klobuchar’s version won’t include provisions to undo previous mergers or other structural reforms like Cicilline had advocated, NYT reported.

Klobuchar’s bill will face criticism from lobbyists who have spent tens of millions of dollars fighting against new legislation, but also from the left, where prominent critics want to dismantle some of the biggest companies. Some progressive groups and liberal lawmakers have said that potential nominees for top antitrust agency roles won’t be hard enough on the industry, NYT reported.

PYMNTS reported that the President Joe Biden administration is likely to be tougher on Big Tech, particularly as Democrats now control both houses of Congress. The headwinds could already be seen as of late in the lawsuits by numerous states and the U.S. Federal Trade Commission (FTC) against Facebook, along with a separate one against Google.

In addition, the Office of the Comptroller of the Currency (OCC) has made moves toward broader, more modern payments landscapes, including digital currencies, showing how the landscape is changing between huge legacy companies and newer startups.