Silicon Valley Politics: Tech Giants Face New Regulation Backlash From Washington

For years, tech companies have been viewed favorably by most Americans, as sites like Amazon and Google benefitted from reputations as cutting-edge and innovative businesses. But within the past year, the relationship between the tech industry and Washington has been marked by tougher scrutiny from regulators and a new political climate that makes it increasingly harder for companies — either willingly or unwillingly — to stay out of politics.

Facebook Involved With Russia Probe

The social media network has been tied to FBI Special Counsel Robert Mueller’s pending investigation into Russian interference in the 2016 U.S. presidential election. Facebook disclosed that a Russia-based firm had paid for targeted ads between 2015 and 2017.

While Facebook has worked with lawmakers in the probe so far, officials have sought to get more information from the company. The increased pressure from investigators is a marked turn from Facebook’s previous statements on its response to the 2016 U.S presidential election. CEO Mark Zuckerberg dismissed the idea that fake news affected the election’s outcome last fall, but the company has since doubled down on weeding similar sites off the network.

Amazon Among Trump Enemies

President Donald Trump frequently uses his Twitter account to bash opponents and a common target has been Amazon CEO Jeff Bezos. Over the past year, Trump has targeted Bezos on topics ranging from Amazon’s taxes to his ownership of the Washington Post.

While Trump’s criticism of Bezos is nothing new, the online retailer’s large scale has been an increasing concern for observers on both sides of the aisle who are wary about a possible monopoly. According to analyst firm Slice Intelligence, Amazon alone accounts for 43 percent of all revenue from U.S. online spending.

The company has made the most of this windfall, moving into markets like original video content, consumer electronics and — thanks to its $13.4 billion purchase of Whole Foods — local retail. President Trump hasn’t yet acted on on his threats to bring regulatory action against Amazon, but an antitrust-fueled backlash has been an increasing concern for tech companies.

Tech Companies, The New Monopolies?

Regulations against tech companies have usually been tightly enforced outside of the U.S. Earlier this year, Google was hit with a record $2.7 billion fine from the European Union over antitrust concerns and lost a case in the Supreme Court of Canada involving global search result takedowns.

But tech companies are keeping a close eye on regulators and others who have been calling for similar actions in the U.S. In a 2016 speech, Sen. Elizabeth Warren (D-Mass.) blasted companies like Google, Amazon and Apple as using their scale to “snuff out competition.” Last month, Google was also accused of having a scholar at the New America Foundation think tank fired over a critical statement supporting the EU’s fine against the company.