Idaho Chamber Alliance opposes federal legislation regulating ‘big tech’ companies

U.S. Sen. Amy Klobuchar, D-Minnesota, is pressing hard for a vote in the U.S. Senate on her antitrust legislation (S.2992) aimed at “big tech.” The Idaho Chamber Alliance, representing more than 10,000 business owners across Idaho, is opposed to this bill, and we have encouraged Sens. Mike Crapo and Jim Risch, both R-Idaho, to oppose it, as well.

The implication of this bill would be far-reaching and disastrous for both consumers and small business. This bill is overly broad, vague and threatens to drastically alter the way the online environment is both used and regulated.

Existing antitrust laws focus on the best interests of the consumer. These laws recognize that vigorous competition lowers price, drives innovation and gives consumers the power to decide winners and losers in the marketplace.

Sen. Klobuchar’s proposed antitrust legislation would lead to higher prices and less convenience for consumers. It would prohibit, or make it more difficult, for some companies to provide “store branded” alternatives to name-brand products at cheaper prices. While common practice in grocery stores across America, these marketing practices would become illegal for select companies.

The legislation would also prohibit or create barriers to companies providing benefits like free or expedited shipping for select products. Amazon and other companies can currently offer free or expedited shipping because sellers who use certain platforms also utilize their distribution services. Popular offerings at Amazon Prime could become illegal because the bill forbids Amazon from “preferencing” those merchants who utilize their services.

The bill would also prohibit targeted companies from providing free ancillary services alongside their core services. The government could decide Google couldn’t offer Google Maps with your internet search results because those maps would “preference” Google over other map service providers. Instead, it would treat all map services the same. This approach would eliminate efforts to bundle complimentary services that clearly benefit consumers.

Additionally, this bill would usher in an unprecedented level of government involvement in the economy — without concern for consumer prices. A comprehensive economic study by the National Economic Research Associates finds that proposed antitrust legislation in Congress could cost the economy $319 billion. The result would be increased costs and loss of services for consumers and small business.

On behalf of the 25 chambers of commerce from across Idaho, the Idaho Chamber Alliance encourages Idaho business owners and consumers to join us in encouraging Sens. Crapo and Risch in opposing this proposed expansion of governmental interference in our marketplace.

Chip Schwarze is chairman of the Idaho Chamber Alliance and CEO of the Greater Idaho Falls Chamber of Commerce.