The report, titled “The Case for Fair Market Rules for the Largest Online Platforms,” outlines why the American Choice and Innovation Online Act is key to spurring innovation and protecting small businesses and consumers
“Too much market power results in consumer and citizen harm”
WASHINGTON – The Consumer Reports Digital Lab published a report titled “The Case for Fair Market Rules for the Largest Online Platforms” which shows the importance of the American Choice and Innovation Online Act. U.S. Senator Amy Klobuchar (D-MN), Chairwoman of the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights, and Senator Chuck Grassley (R-IA), Ranking Member of the Judiciary Committee, plan to introduce this legislation next week along with a bipartisan set of cosponsors.
The American Choice and Innovation Online Act will restore competition online by establishing commonsense rules of the road for dominant digital platforms to prevent them from abusing their market power to harm competition, online businesses, and consumers.
From the report:
- “Multiple investigations and studies have found that the largest online platforms have too much market power, and this results in consumer and citizen harm.”
- “The problem with a handful of giant online platforms now dominating the online marketplace is that their market power is persistent (not temporary), and the effects of this market power are widespread because these firms operate across the digital ecosystem.”
- “More competition and innovation, whatever its source, is good for consumers. The proposed application of market rules strikes the right balance in allowing these giant corporations the freedom to compete in new lines of business while applying to activities where their market power is entrenched and persistent.”
- “...without policy intervention, the market will not self-correct. Consumer harms and distortions of competition, investment decisions, and innovation incentives throughout the digital ecosystem will continue.”
- “The American Choice and Innovation Online Act...set[s] market rules to address various structural market features and strategic firm behavior which, absent policy intervention, would mean that covered platforms’ market power and related consumer harms will persist.”
- “The proposed market rules will allow everyone, not just the giant corporations, to innovate without artificial restrictions. It must be pursued and seen through to completion.”
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