Big Tech Hearing: What Blockchain Lacks? International Politics, Monopoly, Privacy Breaches

The century's hearing held by the U.S. House Judiciary Committee on the 29th concluded on the morning of the 30th. This hearing was significant as it brought together the world's most renowned and influential tech companies: Amazon, Apple, Facebook, and Google (Alphabet), with their respective CEOs, to answer questions on potential antitrust violations. As of the deadline, the combined market value of these four companies is $4.86 trillion.

These internet legends that rose in the late 20th century are now facing scrutiny in the 21st century under antitrust laws, originally designed to prevent industrial giants of the 20th century from becoming too dominant.

Big Tech Hearing

On the afternoon of the 29th (early morning on the 30th in Taiwan) Eastern Time, the U.S. House Judiciary Committee held a hearing titled "Online Platforms and Market Power", with attendees including the world's richest man, Amazon's CEO Jeff Bezos (worth $171.6 billion), Google's CEO Sundar Pichai, Apple's CEO Tim Cook, and Facebook's CEO Mark Zuckerberg. These internet giants' CEOs took turns defending whether their businesses violate antitrust laws, including issues such as privacy violations, abuse of power, and political interference. The antitrust hearing involving Big Tech signifies the era we are in, where the power of technology is shaping society as a whole.

US-China Relations: Tech Giants Need Political Statements

During the hearing, Facebook's CEO Mark Zuckerberg defended the acquisitions of WhatsApp and Instagram, stating that Facebook's acquisitions are necessary for the continued operation of these platforms. Zuckerberg also emphasized that Facebook's success is crucial for maintaining U.S. competitiveness against China. In a previous hearing on financial services, he mentioned that Facebook's cross-border digital currency project Libra helps the U.S. maintain financial sovereignty and compete against China's national digital currency.

In 2010, Chinese hackers' attacks and content censorship led to Google's decision to exit the Chinese market. In this meeting, Google's CEO Sundar Pichai was questioned about whether he was aware that China was using Google to steal intellectual property, which he denied.

Despite past efforts by tech giants to enter the Chinese market and show goodwill, amidst the tense U.S.-China relations, American tech giants still need to make some political statements to the government.

Not only Facebook, but Amazon's CEO Jeff Bezos (from a Cuban immigrant family) and Google's CEO Sundar Pichai (of Indian descent) also shared how their family's American immigrant experiences have greatly inspired their entrepreneurial journeys.

It is worth noting that this hearing, unlike previous video conferences, did not use Google's video software or Zoom, which is perceived to have Chinese ties, but instead used Cisco's WebEx. Both the Democratic and Republican parties expressed a unified stance, indicating bipartisan consensus on this antitrust investigation. Many recent U.S. policies to prevent foreign influence through technology reflect that tech companies need to consider international political dynamics.

Emperors of the Digital Economy: Inevitable Monopoly

Democratic Congressman David Cicilline stated during the hearing, "These tech giants have too much power; their power hinders new competition, creativity, and innovation. Their monopolies are suffocating small businesses." He pointed out that internet users have no choice but to use these four major companies, even though Americans are aware that these companies mine their data daily, but they have no other options, likening them to the emperors of the digital economy. Even Amazon's CEO admitted during the meeting that while they have rules prohibiting the use of seller data, they cannot guarantee they have never violated them.

Facebook's CEO Mark Zuckerberg vehemently denied allegations of monopolizing online advertising during the hearing: "Amazon sees the most growth in ad revenue, and Google is the largest ad platform. For every dollar spent in advertising in the U.S., Facebook gets less than ten cents." Apple's CEO Tim Cook also denied any market dominance by Apple, stating that the situation is complex.

Regarding questions about monopolies and malicious acquisitions, the CEOs of Amazon, Google, and Apple argued that their retail markets and app stores have actually helped many small businesses create new economies. Facebook's CEO also stated that acquiring small businesses promotes competition and denied that acquisitions were meant to eliminate competitors. When questioned by lawmakers about whether Google provides search results that favor Google over users, CEO Sundar Pichai stated that they prioritize providing the most relevant results.

Blockchain and Cryptocurrency Industry: What's Happening?

Currently, mergers, technology replication, and copying business models are common occurrences in the industry, but as it is still a niche market, it cannot be considered a monopoly.

Privacy protection is a core concept for most cryptocurrency startups, emphasizing decentralization in the blockchain field, which is a prominent feature compared to the traditional internet industry. However, it is undeniable that participants in compliant trading markets may find it challenging to maintain transaction privacy due to the need for identity verification and increasing government focus on blockchain-based financial flows.

In terms of international politics, issues related to physical money flows may indeed lead to restrictions on cryptocurrency-related companies based on national economic protection factors, such as China's ban on cryptocurrency exchanges and various governments' doubts about Libra for currency stability.

While the concept of decentralization may prevent the blockchain industry from being subject to antitrust laws, as it continues to grow and mature, it will undoubtedly face more scrutiny and challenges.

Sources: Business Insider, Yahoo Finance