The Big Story: House panel examines big tech's impact on small businesses. The House Small Business Committee held a hearing yesterday to examine big tech’s impact on small businesses, with lawmakers bringing in witnesses from large tech companies, small retailers, and nonprofit organizations to discuss the benefits and challenges of large online platforms.
Representatives from Amazon and Google who testified before the panel discussed how their platforms work to encourage small business growth and success, and witnesses from small businesses largely echoed the importance of the symbiotic relationship between large and small companies. As Rep.Steve Chabot (R-Ohio), ranking member of the committee, noted, concerns about issues such as intellectual property and privacy remain high among small businesses that rely on large platforms. But Chabot added that " the development of these digital platform products and services from Tech giants has been a boon for the millions of individual small businesses that probably never would have existed without them."
In a memo released before the hearing, Chairwoman Nydia Velázquez (D-N.Y.) floated the idea of strengthening federal policy in a way that promotes greater competition between large and small companies without placing overly restrictive limits on innovation. The memo concluded, "As technology evolves at an increasingly rapid pace, it is more important than ever for small businesses to have equitable opportunities to build and grow their operations. ... Federal policies play an inherent role in balancing the scales to sustain technological innovations while also promoting the needs of the small business community."
Policy Roundup:
Senators introduce bipartisan bill to bolster startup growth. Sens. Tammy Baldwin (D-Wis.) and John Hoeven (R-N.D.) introduced legislation this week—The Support our Start-Ups Act—that would promote U.S. startup growth by easing the financial burden that entrepreneurs face when launching a new venture. Engine is proud to support this bill, which would increase startup deductions to ensure that entrepreneurs are better equipped to financially support their small businesses.
DACA decision is make or break moment for startups. The Supreme Court on Tuesday heard oral arguments on the Trump administration's repeal of the 2012 Deferred Action for Childhood Arrivals (DACA) policy. With immigrants making significant contributions to the country’s startup ecosystem, a decision that further restricts foreign-born workers’ rights could reduce the number of highly-skilled entrepreneurs flocking to the United States.
Cicilline suggests merger moratorium until DOJ, FTC complete antitrust probes. Rep. David Cicilline (D-R.I.), chairman of the House antitrust subcommittee, suggested during a hearing on Wednesday that mergers involving “dominant platforms” should be halted while the Department of Justice and the Federal Trade Commission finish up their investigations into allegations of anti-competitive behavior within the tech industry.
Engine submits comments on non-compete agreements. Engine submitted comments this week to the House Judiciary’s antitrust subcommittee following the panel’s Oct. 29th hearing on competition in labor markets. We stressed that the use of non-compete agreements can “prevent employees from accepting new opportunities at startups and starting their own firms using the skills they developed in the job market.”
Pelosi: USMCA agreement "imminent." House Speaker Nancy Pelosi (D-Calif.) said Democrats and the Trump administration were making significant progress towards reaching an agreement on the USMCA trade deal, with Pelosi saying a breakthrough could be “imminent.”
Concerns about TikTok. Senate Minority Leader Charles Schumer (D-N.Y.) wrote a letter to U.S. Army Secretary Ryan McCarthy on Tuesday citing “potential national security risks” posed by the U.S. Army’s use of popular Chinese social media app TikTok as a recruitment tool for military service. Rep. Jim Banks (R-Ind.) also called for the U.S. government to “ look at how the Chinese are using the app and prevent it from being used for purposes of espionage against United States citizens.”
Energy and Commerce Democrats criticize FCC over location data concerns. Democratic leaders on the House Energy and Commerce Committee, led by Chairman Frank Pallone (D-N.J.), wrote Federal Communication Commission Chairman Ajit Pai late last week to criticize the agency for failing "to take any action" in response to reports that major wireless carriers were giving users’ location data to third-parties without their consent.
Lawmaker drafts bills to keep platforms out of the financial sector. Rep. Chuy Garcia (D-Ill.) has drafted three pieces of legislation that would limit how much money tech companies can make from financial activities online, bar large tech platforms from developing cryptocurrencies, and impose greater regulatory oversight on tech companies seeking to establish banking units.
Startup Roundup:
#StartupsEverywhere: Tucson, Arizona. SGNT, a tech startup founded in 2017, has developed an exciting new hardware and software suite to ensure the secure transport of goods and pharmaceuticals around the world. Emil Tremblay, SGNT’s co-founder and CEO, recently took the time to give us some insights into the company and how it got started.
