Apple, Google crushed California bill that helped smaller rivals
Key Points:
- California's "Based Act," aimed at preventing major tech platforms like Apple and Google from favoring their own products, was swiftly defeated due to intense lobbying by large tech companies and their trade groups.
- The bill, sponsored by State Senator Scott Wiener and supported by small tech advocates such as Y Combinator, faced a coordinated opposition campaign led by the California Chamber of Commerce and the Chamber of Progress, which mobilized extensive resources and misinformation to kill the measure within a month.
- Big tech companies fear that such regulations, similar to stringent European antitrust laws, could significantly disrupt their business models and potentially cost them billions, prompting them to mount a united front against the legislation.
- The lobbying effort included direct interventions from tech executives, mobilization of allied industries like airlines, and the use of front groups funded by tech giants to present opposition testimony, highlighting the companies' vast political influence in California.
- Despite the bill's failure, Senator Wiener indicated he may attempt to reintroduce the legislation, underscoring ongoing tensions between big tech's dominance and efforts to regulate their market practices in their home state.