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00:00THIS WOULD PREVENT PROVIDERS FROM PREFERENCE AND PRODUCTS. TALK TO US ABOUT HOW SIGNIFICANT THIS BILL COULD BE. > > FRANKLY, THESE ARE SOME OF THE MOST -- POTENTIAL CHANGES THAT CONGRESS HAS DEBATED EVER. THEY ARE AIMED AT PROHIBITING BIG FIVE COMPANIES FROM PREFERENCE IN THEIR OWN PRODUCTS. THAT WOULD MEAN THAT AMAZON COULDN'T FEATURE AMAZON BASICS BRAND PRODUCTS. IT COULDN'T HIGHLIGHT AMAZON TODAY SHIPPING. AN IPHONE COULDN'T COME PRELOADED WITH IMESSAGE. A GOOGLE PHONE COULD NOT COME PRELOADED WITH GOOGLE MAPS. YOU THINK ABOUT A CAR THAT COMES WITH WHEN SHOULD WIPERS OR RADIO, UNDER THIS RADIO, YOU WOULD BE FORCED ALL OF THOSE AMENITIES SEPARATELY. IT'S NOT THE PRICING THAT SOME COMPANIES WOULD BENEFIT FROM THAT HAD OF MANDATE, BUT SOME CONSUMERS WOULD SEE A NEGATIVE. EMILY: EVEN THOUGH A NUMBER OF SENATORS OPPOSE THE BILL, THEY STILL PUSHED IT OUT OF COMMITTEE. > > I HAVE REMAINING CONCERNS ABOUT THE PRIVATE AND -- PRIVACY AND SECURITY. AND ALSO ABOUT SERVICES THAT ARE WIDELY POPULAR WITH CONSUMERS AND MY CONSTITUENTS. I'M GOING TO SUPPORT THIS IN MARKET HERE TODAY IN THIS COMMITTEE, BUT I EXPECT THE SPONSORS WILL CONTINUE TO ADDRESS THESE OPEN QUESTIONS THAT I AND THE OTHERS HAVE EXPRESSED ABOUT THE BILL. EMILY: WHAT DO YOU MAKE OF THAT? THERE IS CLEARLY BIPARTISAN SUPPORT FOR BIG TECH, RAINING IT IN IN SOME WAY. WILL THERE BE AGREEMENT ON HOW TO DO THAT? > > THERE IS A LONG DISTANCE FROM GETTING OUT OF COMMITTEE WHERE WE HAVE GOTTEN SO FAR TO SEEING THIS PUT INTO SOMETHING MORE SUBSTANTIAL AND MAKE ITS WAY THROUGH THE SENATE. THERE IS FIVE-PART PORT. THERE IS DEBATE -- THERE IS BIPARTISAN SUPPORT. DO SEE PEOPLE WHO ARE ADVOCATING ON BEHALF OF THE TECH COMPANIES TRYING TO SEND THE MESSAGE THIS WILL HURT CONSUMERS. IT'S HARD TO SEE EXACTLY WHERE THE CONSUMER GETS HURT WHEN IF YOU ARE ONE OF THE ADVOCATES OF THIS LEGISLATION, THE ARGUMENT IS THAT YOU ARE GIVEN MORE CHOICE. YOU ARE UNDERMINING SUBTLE WAYS IN WHICH GOOGLE FOR EXAMPLE PUTS FORTH ITS PRODUCTS OR GIVES THEM MORE PROMINENCE OR THE WAY THAT AMAZON MIGHT SUBTLY OR OVERTLY ENCOURAGE THE BUSINESSES ON ITS MARKETPLACE FROM HAVING TO USE ITS PRODUCTS. THERE IS A QUESTION ABOUT THE EXTENT TO WHICH AMAZON USES THE DATA IT COLLECTS ON BUSINESSES. IT KNOWS WHAT SELLS, IT KNOWS WHAT FLIES OFF THE VIRTUAL SHELF. IT HARD FOR AMAZON TO MAKE AN ARGUMENT THAT IT DOESN'T USE THAT INFORMATION TO ITS ADVANTAGE. GOOGLE IS VERY MUCH IN THE DRIVER SEAT WHEN IT COMES TO HOW THE PAGE IS LAID OUT AND WHAT YOU SEE AND DITTO FOR APPLE WHEN THESE APPS COME PRELOADED, THEY GET PREFERENCE. THEY SHOW UP AND THEY ARE RIGHT THERE FOR YOU. THE INTENT BEHIND THIS IS TO LEVEL THE PLAYING FIELD A LITTLE BIT MORE PARTED IF YOU ARE A LAWMAKER, KNOCKING BIG TECH GIVES YOU POLITICAL POINTS AND THAT'S CRUCIAL FOR SOME IN AN ELECTION YEAR. EMILY: AS SOMEONE WHO WORKED AT ALPHABET FOR MANY YEARS, YOU SAID EARLIER YOU THINK CONSUMERS ARE GOING TO BE HURT BY THIS. ON THE OTHER HAND, IT SEEMS OBVIOUS THAT OF COURSE GOOGLE PROVINCES ITS OWN PRODUCTS AND ISN'T THAT A CONFLICT OF INTEREST? > > WHAT YOU SOUGHT THE HEARING TODAY WAS A GOOD DEBATE OVER WHAT'S AT STAKE. THERE ARE TWO COMPETING VISIONS. YOU SAW SENATOR KLOBUCHAR VOICE A CONCERN THAT BIG TECH HAS CLOUDED OUT SERVICES LIKE SPOTIFY. THEN YOU HAD PEOPLE LIKE SENATOR FEINSTEIN AND SENATOR PADILLA WHO HAD AN INTERESTING MOMENT WHERE HE SAID CONSUMERS LIKE THAT THEY CAN DO TO AMAZON OR GOOGLE, SEARCH FOR A LOCAL RESTAURANT OR PRODUCT AND IN A FEW CLIQUES THEY ARE THERE. I THINK YOU SAW OPPOSING VIEWPOINTS GOING AT IT IN A SUBSTANTIVE WAY. SPONSORS ARE CLEARLY TRYING TO HELP SOME COMPANIES. FRANKLY THAT'S WHY YOU SEE REPUBLICANS AND DEMOCRATS DIVIDED ON THIS TOPIC. EMILY: HOW MUCH MORE DEBATE DO YOU EXPECT TO SEE AND WHAT IS THE LIKELIHOOD OF THIS BILL GETTING PAST FROM THE VANTAGE POINT IN WASHINGTON? > > IT'S AN UPHILL BATTLE BECAUSE SENATORS ARE SPLIT. YES IT HAS BIPARTISAN SUPPORT AND IT WAS APPROVED BY A MAJORITY OF COMMITTEE MEMBERS. USE OF BOTH DEMOCRATS AND REPUBLICANS VOICING SIGNIFICANT CONCERNS. THERE IS A CUSTOM OF SENATORIAL DEFERENCE. YOU SAW SOME DEMOCRATS SAYING I'M GOING TO VOTE FOR THIS, BUT IT NEEDS WORK. THAT'S A SIMILAR POSTURE TO A LOT OF HOUSE DEMOCRATS TO THEIR VERSION OF THE BILL. EVEN SENATOR GRASSLEY HAD A MOMENT WHERE HE SAID THIS ISN'T READY TO ATTRACT THE NECESSARY 60 VOTES THAT WOULD NEED TO PASS THE SENATE FLOOR. LEADERS OF THE SENATE AND HOUSE TEND TO NOT BRING BILLS TO THE FLOOR UNLESS IT HAS SUPPORT FROM THE MAJORITY PARTY. USER FROM THE DEMOCRAT SIDE THAT EVEN AMONG DEMOCRATIC SENATORS, THERE ARE MIXED VIEWS. EMILY: WHAT ARE YOU GOING TO BE WATCHING FOR AS THIS MOVES FORWARD? > > YOU SAW DEBATE OVER AMENDMENTS. WE TALKED ABOUT THE NATIONAL DIMENSION AND WHETHER THIS ADVANTAGES U.S. PLAYERS. THE LAWMAKERS ARE NOT GOING TO LET SOMETHING PASS THAT THEY SEE AS GIVING AN ADVANTAGE TO THE BIG CHINESE PLAYERS. YOU'RE GOING TO SEE DISCUSSION OF AMENDMENTS THAT WILL ALSO TARGET TENCENT ETC. I THINK THE INTERNATIONAL DIMENSION WILL COME TO PLAY. THE SMALL BUSINESSES NEED TO GET THEIR MESSAGE ACROSS. GOOGLE AND APPLE AND THE LARGE COMPANIES HAVE PLATFORMS AND THEY ARE ABLE TO GET THEIR VIEWS OUT THERE AND THEY ARE ABLE TO SHOW THIS IS THE WAY THINGS ARE. YOU LIKE IT BECAUSE THIS IS THE WAY THINGS ARE. THE SMALL BUSINESSES NEED TO GET THEIR MESSAGE ACROSS WHICH IS THERE IS A CHOICE AND ARE YOU BEING GIVEN A CHOICE AS A CONSUMER ABOUT THE SEARCH ENGINE, THE PRODUCTS, THE APPS YOU DOWNLOAD? CAN THESE BIG PLATFORMS BE DOING A BETTER JOB OF GIVING YOU THAT CHOICE AND MAKING THAT CLEAR?

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What the Senate’s Anti-Trust Markup Means for Big Tech

Chamber of Progress Founder and CEO Adam Kovacevich and Bloomberg Technology Executive Editor Tom Giles join Emily Chang for a conversation on the anti-trust bill – which made it out the Senate Judiciary committee by a vote of 16-6 – means for big tech and what challenges lie ahead with the adoption of this bill. (Source: Bloomberg)

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