Big tech companies using lobbyists to get involved with the Biden administration: WSJ

WASHINGTON – Big tech companies are preparing for a new management and a new scrutiny of their business with a time-tested strategy: open their pockets.

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Facebook Inc. and Amazon.com Inc. outperformed all other American companies in federal lobbying spending last year, according to an analysis by the Wall Street Journal of the most recent disclosures. It was the second consecutive year that they spent more than all other companies, including firms like AT&T Inc. and Boeing Co.

Facebook, facing federal and state antitrust suits, as well as a series of hearings summoning CEO Mark Zuckerberg to Washington, spent nearly $ 20 million in 2020, an increase of almost 18% over the previous year.

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Amazon, which saw CEO Jeff Bezos testify before Congress for the first time and continued to push to expand its business as a government contractor, spent about $ 18 million last year, an increase of about 11% compared to 2019 spending.

“We make it clear that the Internet needs updated regulations, which is why we will continue to express our support for the new rules that address today’s online reality,” said a Facebook spokesman.

Big tech companies are preparing for a new management and a new scrutiny of their business with a time-tested strategy: open their portfolios. (AP Photo / Michel Spingler, Archives)

“Amazon offers a wide range of products and services to our customers and we are always looking for ways to innovate on your behalf. Our team in Washington, DC, is focused on making sure we’re defending issues that are important to lawmakers, our employees and customers, ”said an Amazon spokeswoman.

The Journal analyzed reports submitted by American companies to Congress under the Lobby Disclosure Act. The reports cover the entire year.

Apple Inc. reported $ 6.7 million in lobbying spending for 2020, down from a record $ 7.4 million in 2019.

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Alphabet Inc.’s Google also reported a drop in its lobbying budget for the second year running, spending $ 7.5 million.

Apple and Google declined to comment on lobby spending.

These expenditures, which are to be disclosed under federal law, represent only part of a series of efforts that the four tech giants are using to oppose their critics and build goodwill in Washington at a time when they are under pressure. spotlights brighter than ever.

Google and Facebook are facing several antitrust lawsuits, and Amazon and Apple have been the subject of preliminary investigations that could go even further under the Biden government.

While President Biden has not set a technology agenda or made important personnel choices to oversee the industry, Democrats in Congress are pushing him to be more aggressive in tackling Big Tech’s market power. They are planning their own legislation and supervision on issues such as antitrust, privacy, responsibility for user-generated content and misinformation.

The role of social media in the January 6 Capitol riot has given new urgency to these plans – and has led Facebook, Amazon and others to suspend political donations, restricting a source of influence.

A key part of the business handbook is financing groups that agree with the business agenda.

In a separate disclosure of its political activity, Google said in December that it is a substantial member or contributor to some 200 trade associations and political advocacy groups, including several that work on antitrust issues. Some of the groups criticized Google.

When a Colorado-led coalition of attorney generals filed an antitrust lawsuit against Google in mid-December for its dominance in online searches, the president of the Connected Commerce Council – one of the Google-funded groups – issued a statement criticizing the action. It was e-mailed to reporters before the details of the lawsuit were released.

Board members are small businesses that benefit from technology companies’ products, said its chairman, Jake Ward. He said he used funds from Facebook, Google and Amazon to finance research and recruitment, but the companies have no say in the positions the group takes.

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Facebook in 2020 supported a new advocacy group, the American Edge Project, to warn against the dangers of containing technological innovation.

In December, two of the group’s paid advisers, the ex-Sens. Saxby Chambliss (R., Ga.) And Kent Conrad (D., ND) wrote a commentary in the Washington Times citing a survey conducted on behalf of the group that showed voters have high levels of appreciation for American products and technology companies .

An American Edge representative said that its more than two dozen members have diverse experiences. They include advocacy groups from other industries, such as medical device manufacturers.

Apple took a proactive stance in feeling the heat from the antitrust spotlight. Prior to a July hearing with CEO Tim Cook and other chief executives last year, the company offered to inform Congressional staff about a study that showed the economic benefits of its App Store. An Apple spokesman said the study was developed as an opening for the company’s World Developer Conference.

The companies also hired experience in Washington, according to their employees’ LinkedIn profiles. Under the scrutiny of the Federal Trade Commission, Facebook last year hired Barbara Blank, a 12-year veteran of the FTC and a former senior employee of the agency’s competition bureau, which manages antitrust lawsuits.

It also brought in two former employees of the Senate Judiciary Committee, which oversees antitrust and other technology-related issues.

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Amazon, the subject of a preliminary FTC investigation, last year recruited a Justice Department antitrust attorney and hired four former FTC employees, including three antitrust lawyers and an economist.

Apple hired a Justice Department attorney and a former FTC antitrust employee who also advised FTC commissioner Rebecca Slaughter, now the agency’s acting chairman.

Some of the companies also buy ads focused on Washington. Facebook purchased digital ads in Washington publications in 2020, promoting support for “updated Internet regulations”.

This month, Big Tech offered the Biden government help to fight the coronavirus pandemic and highlighted long-shared political priorities.

A senior Amazon executive publicly wrote Biden a letter on the day of the inauguration, offering IT and logistical help to launch a coronavirus vaccine.

Google CEO Sundar Pichai praised Biden’s executive actions on the first day on the pandemic, climate change and immigration. Apple’s Cook praised Biden’s immigration policy as well.

And before the inauguration, Facebook representatives discussed with the Biden transition companies’ efforts to combat misinformation about the coronavirus, and CEO Mark Zuckerberg received federal infectious disease specialist Anthony Fauci for an online broadcast.

Among other technology companies, Microsoft Corp. spent $ 9.4 million lobbying in 2020, Oracle Corp. spent about $ 8.1 million, TikTok owner ByteDance Inc. spent $ 2.6 million and Twitter Inc. spent $ 1.5 million.

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