- Apple is a bit larger today than the company
created by Steve Jobs in his parents' garage.
- Facebook is about putting power in people's hands.
- Getting access to information
is an important human rights.
- [Narrator] The chief executives of Apple,
Facebook and Alphabet are congressional hearings veterans.
They'll be joined by first timer,
Amazon CEO, Jeff Bezos on Wednesday
as all four come virtually
before a House Judiciary Subcommittee.
The topic this time is one that strikes
at the heart of each of their companies,
whether new laws are needed to reign in big tech.
- This is an unusual moment
when we've got the CEOs of four of the five
largest companies in America
showing up at a hearing at the same time
testifying in a hostile environment
about how they became so large and whether they acquired
their dominant position in the market legally.
- [Narrator] The bipartisan investigation
is looking at whether US antitrust laws need to be updated.
- These online platforms are in some ways a new phenomenon,
certainly new enough that they didn't exist
when US antitrust laws,
which are decades old, were written.
- Some lawmakers say the tech giants
are wielding excessive power over markets,
such as online retail,
online advertising and smartphone apps.
Amazon dominates online retail with nearly 40%
of US online shopping occurring on its platform.
Amazon with a market value of about $1.5 trillion
is facing scrutiny over whether it unfairly uses
its size and platform against competitors
and other sellers on its site.
Jeff Bezos, Amazon CEO, came under pressure
to testify to Congress after the Wall Street Journal
reported in April that Amazon was using data
from its own sellers to launch competing products.
Amazon says it strictly prohibits its employees
from using seller data to determine
which private label products to launch.
Wednesday's hearing will be the first time
the world's richest man testifies before Congress.
- It will be a new experience for him.
And it'll be interesting to see how he responds.
- [Narrator] Lawmakers are expected to challenge
Amazon's contention that its business practices
don't drown out competitors.
Bezos in the opening statement who released says,
"Amazon accounts for less than 4% of retail in the US.
And unlike industries that are winner-take-all,
there's room in retail for many winners."
Bezos testimony comes as the Federal Trade Commission,
along with some states, is probing Whether Amazon's
practices hurt competition.
Apple's CEO, Tim cook, is expected to defend
how his company's app store operates.
It generates about $15 billion in annual sales for Apple.
Developers, customers and lawmakers are balking
at the 30% cut the company takes on sales.
It's the only app store available
on more than 900 million iPhones worldwide.
Apple's argued that it's not a monopolist
and a study at commission
to have Wednesday's hearing says,
"The 30% fee is fair and similar
to other digital marketplaces."
Mr. Cook is set to tell lawmakers,
"Apple does not have a dominant market share
in any market where we do business."
- I am proud to represent Apple before you today.
- [Ryan] Tim Cook has appeared before Congress
before back in 2013 and to Apple's tax practices.
- Can you understand there's a perception
of unfair advantage here, Mr. Cook?
- Sir, I see this as a very complex topic.
- [Ryan] That is not an easy place to testify,
and he kept his cool for almost two hours in that forum.
- I'm committed to being fully transparent,
including with policy makers.
- [Narrator] Sundar Pichai, the CEO of Google's
parent company Alphabet testifies as his company
faces a potential antitrust lawsuit
from the US justice department and a group of states.
Their focus is on Google's ad business.
Google has repeatedly denied that it runs its business
in an anti-competitive manner.
Mr. Pichai plans to say that because of his company's tools,
"Businesses on Main Street can compete in a way
that wasn't possible 20 years ago, including globally."
But critics say the company uses its dominance
in search to stifle competition.
- The stakes are high for Google in this hearing,
although they may not get the most questions,
they are facing the most advanced
antitrust investigation of the four firms.
We expect the US regulators to file a lawsuit potentially
as early as this summer against Google.
And so what Mr. Pichai says could factor
into that and he's gonna have to be on his guard.
- [Narrator] Facebook CEO, Mark Zuckerberg, is also expected
to face questions about his company's dominance
along with Google of the US digital advertising market.
- Mr. Zuckerberg is the youngest
of the forest CEOs to testify,
but he's actually testified more than the other three, Matt.
He's been there three times in the last few years.
- I recognize that we play an important role
in society and have unique responsibilities because of that.
- [Ryan] He's becoming quite practiced at this.
Nevertheless, the stakes are high for Facebook.
- [Narrator] Facebook owned platforms,
including Instagram and WhatsApp
have more than 2.5 billion users worldwide.
Some critics of the company are calling for Facebook
to be forced to divest Instagram and WhatsApp.
Mr. Zuckerberg plans to tell the subcommittee,
"At Facebook, we compete hard,
because we're up against other smart
and innovative companies that are determined to win."
The four tech titans appear to be on the same page,
arguing their companies innovate
and don't unfairly dominate.
- It's hard to say that this hearing will lead
to specific outcomes on its own,
like a change in the law or an antitrust case
against these companies.
But these hearings do matter in the court of public opinion
and whether the CEO's handled themselves well
and defend themselves well will be important
for how their companies are perceived
and how the next administration,
whoever it is, approaches them.
(soft music)