Facebook, Equifax Recusals a 'Problem,’ but Simons Not Concerned Overall
FTC Consumer Protection Bureau Director Andrew Smith’s potential recusals (see 1812060048) don’t affect agency deliberations because of an “absolutely terrific” career staff, but conflicts like Facebook and Equifax are a "problem," Chairman Joe Simons told reporters Wednesday. He answered questions after a Senate Antitrust Law Subcommittee hearing, during which Republican and Democratic lawmakers voiced Silicon Valley monopoly concerns.
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House Judiciary Committee Chairman Bob Goodlatte, R-Va., noted Simons and Assistant Attorney General Makan Delrahim, who also testified, have suggested concerns about the industry’s concentration of power are valid. Goodlatte claimed political bias of large Silicon Valley companies. Ranking member David Cicilline, D-R.I., said the U.S. is in a “monopoly moment,” calling the Facebook-Cambridge Analytica breach a stark reminder of the abuse of dominance, though the issue isn't limited to one company. Cicilline suggested Google is abusing market power to favor its own interests, and expressed disappointment CEO Sundar Pichai wasn't “more forthcoming” during Tuesday’s hearing with the House Judiciary Committee (see 1812110053). Google didn’t comment.
FTC focus is to identify discrimination and determine impacts on competition and consumers, Simons told lawmakers. Privacy can be considered an aspect of quality when determining anticompetitive abuses, Simons said. Lawmakers have frequently questioned how abuse can be identified when users of online platforms like Facebook, Twitter and Google don’t pay for their services. Eliminating competition leads to removing market drivers to improve that aspect of the product, Simons said, warning against privacy legislation that harms competition and entrenches incumbents. Simons was responding to Cicilline, who suggested privacy and competition are increasingly interrelated.
Delrahim repeated DOJ’s commitment to allowing public comment before a decision to terminate the BMI and ASCAP consent decrees (see 1811080044). Subcommittee Chairman Tom Marino, R-Pa., voiced concerns that eliminating the decrees without an alternative framework would disrupt the music industry, a point shared by House Judiciary Committee ranking member Jerry Nadler, D-N.Y. Reviewing those two consent decrees have required the most resources among the agency’s review of some 1,300 consent decrees, Delrahim said, committing to keep lawmakers apprised of the agency’s plans. DOJ hasn't drawn any conclusions, he said.