Without a ‘blue wave,’ Big Tech faces limited risk from antitrust push out of Washington D.C.

The “Big Tech” companies — Apple, Amazon, Alphabet, and Facebook — face limited risk from a renewed antitrust push out of Washington D.C., analysts say.

Google breakup. Image: Google logo

Ryan Vlastelica for Bloomberg:

A House panel proposed far-reaching antitrust reforms designed to combat the power of companies like Amazon.com Inc., Apple Inc., Facebook Inc. and Alphabet Inc., the parent company of Google. The proposals could lead to the breakup of tech companies if approved by Congress, but Wall Street analysts say the chances of this are low, given Republicans largely shunned the report.

While there are areas of agreement between the two parties, “the nuanced differences in how to execute on those goals is still too far apart to drive bipartisan legislation,” wrote Chase White, an analyst at Height Securities. There could be some changes to antitrust laws, but the distance between the parties is “likely to result in any legislation being watered down from the Democrats’ recommendations.”

Wedbush analyst Daniel Ives wrote that the lack of consensus between the parties “remains a major issue to move things forward,” and that without core changes to antitrust law, “we believe this antitrust momentum hits a brick wall.” Wedbush’s Ives wrote that a blue wave “would change the game,” and “make a formidable force going after antitrust law changes with breakups possibly on the radar.” While this issue is a “contained risk” currently, he added, it could “morph into a threat.”

MacDailyNews Take: Since Apple, unlike some other Big Tech companies, doesn’t even hold a monopoly in any market in which they compete, they should face no risk whatsoever, regardless of election outcomes.

We have always said that scrutiny is reasonable and appropriate but we vehemently disagree with the conclusions reached in this staff report with respect to Apple. Our company does not have a dominant market share in any category where we do business. From its beginnings 12 years ago with just 500 apps, we’ve built the App Store to be a safe and trusted place for users to discover and download apps and a supportive way for developers to create and sell apps globally. Hosting close to two million apps today, the ‌App Store‌ has delivered on that promise and met the highest standards for privacy, security and quality. The ‌App Store‌ has enabled new markets, new services and new products that were unimaginable a dozen years ago, and developers have been primary beneficiaries of this ecosystem. Last year in the United States alone, the ‌App Store‌ facilitated $138 billion in commerce with over 85% of that amount accruing solely to third-party developers. Apple’s commission rates are firmly in the mainstream of those charged by other app stores and gaming marketplaces. Competition drives innovation, and innovation has always defined us at Apple. We work tirelessly to deliver the best products to our customers, with safety and privacy at their core, and we will continue to do so. — Apple

15 Comments

    1. I think Covid will do a pretty good job of thinning the “red” voters’ herd. Funny thing, since the president lost by almost 3 million votes first time around, you’d think he’d want to keep as many of his disciples alive and well as long as possible. At least till after the election. Instead, he’s urging his followers to take risks, making them more likely to become infected, and consequently, less likely to vote. Also funny how the president’s fans seem to have no sense of irony.

      1. You lie, the pandemic is 100% CCP blame. They hide person to person transmission. WHO lied. Taiwan tried to warn the world in December 29, 2019. WHO blocked for CCP. The CCP shut down airline travel inside of mainland China but allowed international Travel to USA. Taiwan shut down all travel to and from China on Dec 29.

        WHO said USA was overreacting to international airline travel as late as Feb. WHO said what CCP told them to say.

        Dr Fauci said do not wear mask in March. By then it was to late. All we could do then is accelerate a medical solution.

        Follow the proven science bro

    2. Wrong Apple will be crushed. This isn’t about fairness it’s about the destruction of USA and it’s “evil” influences. The fairness argument is only a front to keep the citizens asleep.

      They don’t care about the poor they only hate the rich. They only care about absolute power. Apple and Big tech will be a sacrifice on the alter of Marxism.

      The cancer is from within. Postmodernism is a cancer of logic and common sense. Only the outcome is important.

      1. The modern movement most influenced by postmodernism is the Trump Project, not liberalism (which generally embodies modernism, the Enlightenment trust in rational objectivity). Trumpworld is dedicated to subjectivity, the notion that there is no absolute truth, only the “alternate facts” that serve a particular ideology.

        See Wikipedia (“Postmodernism”):

        “Postmodernism is generally defined by an attitude of skepticism, irony, or rejection toward what it describes as the grand narratives and ideologies associated with modernism, often criticizing Enlightenment rationality and focusing on the role of ideology in maintaining political or economic power. Postmodern thinkers frequently describe knowledge claims and value systems as contingent or socially-conditioned, framing them as products of political, historical, or cultural discourses and hierarchies. Common targets of postmodern criticism include universalist ideas of objective reality, morality, truth, human nature, reason, science, language, and social progress.”

        In short, “the truth” is a myth. Everybody lies. All that matters is “my truth,” the alleged facts that best support the Trump will to power.

        1. You are right. Liberalism in its true definition is a Nobel and good thing. Liberty of the individual. The freedom of choice and self determination are liberal ideas.

          Today’s political labels have different meanings. Conservatives are not really conservative.

          I should have been more clear and not relied on labels. But this label I will use. The CCP is a (Karl) Marxist government. They think religion/transcendent moral code and notions or right and wrong are social constructs. The Marxist views the state as the ultimate authority and all notions of value (human rights) can be reimagined and changed in the name of progress of the state. Many western intellectuals (university) are post modern. Nihilism with a degree and lots of free time.

          But you are right, true liberalism is a good thing. In the great struggle its the liberal/capitalist vs the Marxist

          Capitalism enlightened by liberalism is the best way forward for humanity. Kinda what Steve Jobs was.

          Kinda like sports. Rules of fair play but quest for excellence and accountability push the team forward. Everyone loves fair competition between champions. Everyone hates a cheat. Marxism is like watching a basket ball game with only one team; the one party system. Your required to go to every home game. Required to wear one of three approved fan uniforms and if you don’t cheer for the home team they escort you out the back door and ….

          But maybe I’m wrong

  1. Apple has been using their market power to do some consumer-hostile things lately. (Last decade). They really could build up some good will by getting back to empowering the consumers. Right now I feel that Apple is taking advantage of us.

    For example: why no HDMI input? We’ve got that wonderful 5k screen, why can’t we connect stuff to it? Because Apple wants to create a disadvantage to competing technologies: Cable TV, Playstation, live camcorder output, even a second computer. It’s a huge waste of space to need a TV right next to your iMac. (Also, a hardware button for switching inputs.)

    They also want to push their online and wireless services by making existing technologies more difficult: No front accessible ports for SD cards, USB sticks, and headphones. No headphone jack so they can sell wireless headphones that sound worse than $20 wireds, and have lag that makes games and performing music not work.

    Apple wants to push Thunderbolt, so they lock up the ATA connector. We know it is in there. Why can’t we use it? Anything Thunderbolt is just an ATA device in a box anyway. Also, hard drive slot.

    Mac compatibility. They want to sell new software so they keep breaking things we bought even 5 years ago.

    I’ve owned macs since 1985, but I don’t feel like I can recommend them to friends these days. I feel trapped by Apple.

    1. Tau Myx, sounds like your not the target market for modem Apple products. To my knowledge Apple always clearly publishes the features of their products. Plus they have a good return policy so if the products don’t meet your needs then don’t buy them, maybe buy a dell.

      In other news a west cost liberal democratic cries to sleep at night because his journal is stuck on a 1.44” floppy disc. “ How can Apple rob me of my feelings” Said Tau Myx of MDN

  2. Bro your funny! Apple removes HDMI port. They must be crushed by regulations. All advantage must be given to companies supported by communist government.

    Communist government removes eyes, liver, heat, lungs of minority ethic population. You turn the other way. No wait it’s worse, you give them apples tech and playbook and make it impossible for Apple to exits in home country.

    But as long was we remove Trump a little Marxist world domination is a small price to pay

  3. Big tech is now staring to connect the dots. Funny how people start to think clearly when it’s their neck on the block.

    This article is meant to be a pacifier for big tech; getting nervous. Kinda like rolling down the window on the “wokeness” express.

    “Mr conductor, where did you say this train is going? Don’t worry about it kid, here is a lollipop. Now get on board.

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