The unintended consequence of forcing consumers to pay more & making life-changing opportunities less accessible
Texas Insider Report: WASHINGTON, D.C. – There are three Big Tech regulation bills introduced in the current Session of Congress – H.R. 3816, H.R. 3825 and S. 2992 – that would eliminate digital "opportunity for all" while disrupting the current tech platforms that provide so many types of services to millions of Americans. It bears repeating in today's Congress –only by thinking long & hard about possible "government solutions" will legislators avoid using a cleaver, when a scalpel is what's needed.
These bills, if passed, would disrupt too many current tech platforms to mention, will prevent continued and rapid tech delopment in the future, and make it more difficult to access popular apps like FaceTime, Instagram, Google Maps, and LinkedIn.Despite what one may think of or believe about these and various other forms of "Social Media" – or the growing list of technologies involved in "The Internet of Things" – be wary of well-intentioned legislators and their potential "solutions" focused on specific or particular practices of concern.
"Solutions" provided by the government – especially when it involves complex issues of Anti-Trust Law like these issues eventually will – could also have the unintended consequence of forcing consumers to pay more for these apps directly, which could make the often life-changing opportunities that come from technology less accessible.
Another unintended consequence could greatly impact Amazon Prime, and perhaps even ban its business model of success.
How do (or could) these bills impact Amazon Prime? The could possbly have the unintended consequence of breaking the essential link between Fulfillment by Amazon – where merchants pay a fee to participate – and Amazon Prime itself, where Amazon’s ability to fulfill orders in-house is key to them arriving within two days.
In a November 19, 2021, Axios article,
“Amazon has warned third-party sellers that the legislation could jeopardize its ability to host third-party sellers on its platform.”
And Google points out to “its small business customers that the legislation could make it harder for users to find a business listing.”
And Google points out to “its small business customers that the legislation could make it harder for users to find a business listing.”
That harms small businesses that use technology to adapt, recover, and reach new potential customers.
The Information Technology & Innovation Foundation's Director of Antitrust & Innovation Policy, Aurelien Portuese, recently opined that the “Senate and House bills would degrade consumers’ experience and undermine competition.”
In short, instead of these bills expanding consumer choice, it could restrict choice.
We need lawmakers who are able to speak accurately – and perhaps more honestly – about any proposed legislative "solutions" or their impacts on the services and products available through technology because the potential for unintended consequences could have dramatically different impacts on various economic and demographically-challenged consumers.This would put the opportunities technology so often offers out of reach for the indivudals and small businesses that most benefit from making technology and opportunity accessible.
Don Rosenberg captured the situation last month when he wrote in his Fortune Magazine article entitled "You Can Scrutinize Big Tech, but Don’t Punish It for Succeeding":
“What is required is thoughtful analysis and discussion before taking precipitous action. This includes a refocus on the principles and policies of a free market system, especially on the role of competition as a force for good – which, since our founding, has fueled innovation and invention.”
