Big Tech in Hot Water After Latest Senate Hearing

Big Tech in Hot Water After Latest Senate Hearing

( – Big Tech companies have come under fire in the wake of their all-out assault on competitors. As you might recall, Apple and Google teamed up earlier this year to throttle Parler’s ability to reach its mobile users. The two tech giants removed Parler’s phone app from their stores.

That action kicked off a chain of events that included Amazon Web Services canceling the conservative alternative’s hosting. Other companies also refused to do business with Parler.

Its former CEO, John Matze, reported that “every vendor from text message services to email providers to [Parler’s] lawyers all ditched” them shortly after Google and Apple mounted their assault on the platform.

The Senate Takes Aim at Big Tech

Concerned about Apple and Google’s market dominance, the US Senate and mobile app companies targeted both firms during an antitrust hearing on Wednesday, April 21.

A panel from the Senate Judiciary Subcommittee on Antitrust and Consumer Rights heard testimony from several app store developers like Match and Spotify. Representatives from those companies told Senators that Apple and Google strong-armed developers using various anti-competitive practices, such as setting high fees for companies developing and promoting apps.

Spotify’s head of global affairs told Senators that “Apple abuses its dominant position… to insulate itself from competition” at the expense of rival services like those offered by Spotify. According to him, Apple’s practices hurt consumers by forcing “higher prices, less innovation, and less choice.”

An official from the Tinder app owner, Match Group, provided similar testimony. He said his company had to pay Apple and Google a 30% annual commission fee, which currently sets them back $500 million. According to him, it’s the company’s largest expense.

With any luck, these hearings will pave the way for lawmakers to limit the power of Big Tech companies to stifle competition at the expense of consumers.

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