The US House anti-trust sub-committee made a report on Big Tech firms. This report covered Amazon, Apple, Facebook and Google. The collective market value of these firms is $ 5 trillion plus. It is found there is abuse of power to cut off competition and perpetuate their dominance. The suggestion is to have structural break up of their business. These firms put the economy and democracy at stake.

The details of the anti-competitive practices of each of the Big Tech firms were given. Facebook is reported to be using its data advantage to stifle and identify potential competitors. Its strategy is to acquire, copy or kill the other firms. Google leverages the advantage of its search engine and online advertising to encourage its own offerings and creates an ‘eco-system of interlocking’-monopolies.’ Android is used to create its own apps. Apple leverages its own iOS, and has a monopoly like hold with its App Store. Amazon uses the seller data to offer its own private label brands.

The Committee has recommended structural separation of business lines to bypass dominance. There could be legislation to achieve this. Amazon thus can give up its private label business or spin it off from the company.

There should not be preferential treatment on the dominant platforms. The companies should not use their bargaining power to dictate terms. The suggestions and recommondation could be a good beginning.

After 2018 elections, the House turned over to Democrats. David Cicilline of Rhode Island became chairman. The anti-trust sword is far more likely to drop if the Democrats are in charge. This report is a Democratic effort. The Republicans on the sub-committee have been less enthusiastic.